HomeMy WebLinkAboutCOM 0032.030 2006-2008 Page 1 of 2
Murashige, Laura
, _ .
From: Rich Hedges [hedghogg@ix.netcom.com]
Sent: Monday, February 05, 2007 1:13 AM "r~~~'~ FE~ rj P~
To: counciltestimony@co.hawaii.hi.us
t.,,_
Subject: Social Costs of Big Box Stores are Huge, Especially to Tax Pays;,. ; I ,
s,
Attachments: Richard Hedges.vcf; Social Costs of Big Box Stores are Huge.doc
Social Costs of Big Box Stores are Huge, Especially to Tax
Payers
Big Box stores are huge buildings (220,000 square feet or larger). Big Box Wal-Mart stores
are 2'/z times the current size of COSTCO in Kona. The increased traffic from autos along
without the huge amount of trucks going to one location with product will create traffic gridlock.
Big Box Wal-Marts are very bad land use. Truck traffic impacts have not been assessed.
Obviously, the impacts associated with truck traffic, is different than that of car traffic. Trucks
are larger, noisier and necessitate their own roadway and parking considerations. These
trucks will pull product from Kawaihae Harbor south along highway 19 toward Kona and East
along highway 19 toward Waimea. They will also pull product from Hilo Harbor along Highway
11 south to Kea' au where the plan there first big box store.
Prepare to lose what Hawaii employees have come to feel is their right. Prepare to lose the
State of Hawaii mandated employer paid healthcare. Hawaii is the only state in the country to
have such a requirement on employers. California had such a law. It was passed by the
legislature and signed by the governor in 2003. Wal-Mart and other low-income employers
hired signature gatherers at $4.00 per signature to gather signatures, filed for a referendum,
spent millions on advertising and were successful in convincing the voters to repeal the health
insurance requirement in California. It can happen in Hawaii once Wal-Mart saturates the
Market with big box stores. Remember considerably fewer than 50% on Hawaii's young
workers are registered to vote.
Wal-Mart is the worst example of big box stores. Costco is the best example of large format
stores. Unfortunately, Wal-Mart has turned its back on Sam Walton's vision, but it's not
too late. You be the judge. Following are some social reasons to avoid big box Wal-Marts:
. Since the average full-time Wal-Mart employee earned $17,114 in 2005, he or she would
have to spend between 32 percent of his or her income just to cover the premiums and
medical deductibles, if electing for single coverage.
. The average full-time employee electing for family coverage would have to spend
between 22 and 40 percent of his or her income just to cover the premiums and medical
deductibles. These costs do not include other health-related expenses such as medical
co-pays, prescription coverage, emergency room deductibles, and ambulance
deductibles.
. Wal-Mart's most affordable plan for 2006 includes a $1,000 deductible for single
coverage and a $3,000 deductible for family coverage ($1,000 deductible per person
covered up to $3,000). [Wal-Mart 2006 Associate Guide]
. In 2004, Wal-Mart employees, in total, paid approximately 41 % of the plan costs.
3Z• o
comm. No.
Ref. To: hes
2/5/2007 Ref. Uate,_,_,~----"
Page 2 of 2
What does this mean for government? It means that in most states the local
government is the largest insurer of Wal-Mart employees.
The cost to the Federal Government for assistance for Wal-Mart employees is
estimated to total $2.5 billion in 2004.
One 200-employee Wal-Mart store may cost federal taxpayers $420,750 per year. This cost
comes from the following, on average:
o $36,000 a year for free and reduced lunches for just 50 qualifying Wal-Mart
families.
o $42,000 a year for low-income housing assistance.
o $125,000 a year for federal tax credits and deductions for low-income families.
o $100,000 a year for the additional expenses for programs for students.
o $108,000 a year for the additional federal health care costs of moving into state
children's health insurance programs (S-CHIP)
o $9,750 a year for the additional costs for low-income energy assistance.
Wal-Marts do not create economic development they simply replace the current retail market
with low wage and limited benefit jobs that require government to supplement Wal-Mart
employee's income.
Rich Hedges
Hilo
2/5/2007