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HomeMy WebLinkAboutCOM 0787.001 2010-2012Murashige, Laura Page 1 of 1 PIGRC `��7 _C^�2y���L �� � From: ellen.k.kojima@hawaii.gov Sent: Monday, July 30, 2012 1:04 PM To: oouncibastnnony@oo.hawoihiuo Subject: Testimony Resolution 280- 2 Attachments: Testimony-Resolution No. 280-1 2.pdf Attached is testimony for Resolution No. 280-12 to heard on Tuesday, July 31. We are Iocated in Honolulu and unable to submit the printed copies. We would appreciate your printing the appropriate copies. Thank you for you help with this matter B|anKojimo °°^°*°^°°°°°°°°^°°° BlenKoimo Campaign Spending Commission 235 S Beretania Street, Room 300 Honolulu, Hawaii 96813 Ph: (808) 586-0285 ity Notice: This email message, indudi any attachments is for the sole use of the ntended recipient(s) and may contain confidential and/or privileged information. Any review, use, disclosure, or distribution by unintended recpients is prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message. 7/30/2012 KRISTIN E. IZUMI•NITAO EXECUTIVE DIRECTOR STATE OF HAWAI'l CAMPAIGN SPENDING COMMISSION 235 SOUTH BERETANIA STREET, ROOM 300 HONOLULU, HAWAII 96813 July 30, 2012 TO: The Honorable Dominic Yagong, Chair County of Hawaii Council The Honorable K. Angel Pilago, Vice Chair County of Hawaii Council Members of the County of Hawaii Council PHONE: (808) 586-0285 FAX: (808) 5860288 W W W.HAWAII.GOV /CAMPAIGN FROM Kristin Izumi - Nitao, Executive Director Campaign Spending Commission SUBJECT: Testimony on Resolution No. 280 -12, Resolution Urging the Hawai'i State Legislature to Adequately Fund Both the Hawai'i Campaign Spending Commission and a Statewide Comprehensive Public Funding System for Elections Tuesday, July 31, 2012 9:30 a.m., Hilo County Building Thank you for the opportunity to submit written testimony on this resolution. The Campaign Spending Commission ( "Commission ") expresses concerns in expanding a comprehensive public funding program statewide when it does not have the proper funding or staff to run such a significant program. As you know, the Commission administers the Hawaii County Council Comprehensive Public Funding ( "HCCCPF ") program pursuant to Act 244 which begun implementation in 2010 and is operative for the 2012 and 2014 elections as Iong as there is $3.5 million in the Hawaii Election Campaign Fund ( "HECF "). The HECF is a trust fund which was created to enable taxpayers to designate $3 (previously, $2) from a portion of their income tax liability to the fund. See, Hawaii Revised Statutes ( "HRS ") §11 -421. It is from the HECF that public funds are provided to candidates that qualify for not only the comprehensive public funding for the Hawaii County Council but also partial public funding for all candidates. It is also from the HECF that all Commission operations are paid for It therefore represents the primary revenue source for Commission business and programming.' Consequently, it is essential to discuss the impact to the HECF if comprehensive public funding were extended statewide. With a beginning balance of $5 million on June 30, 2009, the Pursttaftt"tti`Act 244,SLH 2008, the legislature reallocated the Commission's other revenue source of fines and penalties-to the general fund. closing balance of the HECF as of June 30, 2010 was $4.6 million and $4.1 million as of June 30, 2011. We have not reconciled the HECF for fiscal year 2012, but.believe that it will close around $3.5 million. The HECF balance has steadily been decreasing each fiscal year. HECF's revenue is generated by taxpayers designating $3 from their state income tax to the fund. In the past five years, an average of $203,000 has been designated to HECF as a result of this check- off. Interest earned on the principal yields about $200,000 and we believe that in consideration of the low interest rate, the return will be a lot less. In addition, if the principal is reduced, the interest income is reduced. For 2010 elections, a total of $188,286 was disbursed from the HECF to pay for twenty -two (22) qualifying candidates in the partial public funding program and a total of $147,716 was disbursed from the HECF to pay for eight (8) qualifying candidates in the comprehensive public funding program for the Hawaii County Council pilot program. Accordingly, $336,000 was expended to pay for the two public financing programs: To date, for 2012 elections, there are eight (8) HCCCPF candidates and a total of $195,428 disbursed as well as four (4) partial public funding qualified candidates and a total of $15,349 disbursed for a sum of $210,777 even before the primary election. There are 292 candidates on the 2012 statewide ballot. The Commission understands that you may receive strong support for this resolution. We would submit that the Hawaii County Council comprehensive public funding is a pilot project which is in its second year of implementation. We maintain that the reasons advocating and supporting this program such as, but not limited to, increasing the candidate pool and competitiveness as well as voter turnout, grass root initiatives, and citizen participation have yet to be evaluated and assessed to determine whether the program should be expanded statewide as suggested by this resolution. For the foregoing reasons, the Commission strongly suggests that the prudent course is to review this program as it unfolds to permit lawmakers and taxpayers to make an informed decision as to the program's effectiveness. Alternatively, if this resolution passes, the Commission recommends that funding be appropriated pursuant to HRS § 11- 421(b)(2) to properly fund and staff the additional program requirements. Comparable programs in the U.S. have separate funding sources which should be examined and presented. 2 An average of $201,000 per election year over the last five elections was disbursed from the HECF to pay for qualifying candidates in the partial public funding program. 2010 was the first year for the comprehensive public funding program so an average cannot be computed.