HomeMy WebLinkAboutCOM 0076.007 1998-2000 ~ ME 'f '
Working Together LOCAL 152, AFL-CIO irk
7'-.
for Hawaii j s
Hawaii Government Employees Association
495 Manono Street, Hilo, Hawaii 96720. Phone (HUH) 935-6841, FAX (808) 961-2A37
Testimony of Gary Yoshiyama, Hawaii Division Chief, Hawaii Division, HGEA/AFSCME on
Ordinance Bill No. 22 (Communication No. 76) which authorizes the Administration to
issue and sell bonds for~p~poce of refunding the 1978 Refunded General Obligation
BQnsls.
BOND DEFEASEMENT IS A NECESSARY STEP
We believe the bond defeasement is a necessary step. It is not without pain and it is a difficult
pill to swallow but nevertheless necessary.
Faced with declining revenues and the numerous demands for maintaining and increasing county
programs and services, bond defeasement and refunding of general obligation bonds provides the
County a solution, if only temporarily, to continue to provide desired and needed governmental
services and programs. Defeasement and refunding certainly do not provide a permanent
solution or revenue source nor is defeasement or refunding THE sole answer to all of our shared
concerns.
FUNDING OF COST ITEMS
Our County has many obligations which go beyond what defeasement provides us. Take funding
of cost items for Unit O1, 02, 03, 04, and 13 employees. The mayor's budget does not include
funding for our 97-99 contracts - he leaves that to you.
In your budget deliberations, we request you reaffirm your commitment to fund our cost items
for our 1997-99 collective bargaining agreements. The public employers and unions made a
deal. Police and Firefighters have received their agreed to adjustments. Most other public
employees haven't. Union members have worked their end of the deal for the past two years.
You Funded the agreements in late 1997 and early 1998, but our members weren't paid because
the State Legislature didn't fund the agreements in 1998. The funding measure is moving
through the State Legislature at this time. We ask that you keep your commitment to public
employees.
1 Comm. No. 76 •
File No. FND~61~D '
Ref. Ta: Pr~ssnted 1=G P. H .
Ref. Date MAR 1 9 ~
SUPPORT FOR THE COUNTY
Defeasement is a temporary solution, and our collective bargaining agreements need funding.
But more needs to be done -all of us recognize the need to work together.
Our Union, HGEA/AFSCME, has come before the County Council in the past yeaz or so
pledging our pazticipation in improving government including improving efficiency and
increasing revenues.
In the State Legislature our Union has recently supported such measures as transfer of residential
detention ofpre-arraignment detainees back to the State, exempting the county from the genera?
excise tax, and returning a % of fines and forfeitures retained by the State to the counties.
GOVERNMENT EFFICIENCY
On the important matter of government efficiency, as an example, our Union is on a committee
created by Act 230, 1998 State Legislative Session, that is charged with the responsibility to
develop a managed process that enables state and county governments to implement public-
private competition for government services through the managed process that determines
whether a particulaz service can be provided more efficiently, effectively, and economically by a
public agency or a private enterprise.
Also, we have come before you in the past, supporting and calling for examination and
elimination of duplicated governmental services as a means of improving government efficiency.
WHERE IS THE MONEY GOING
I read in our local print media that one concern raised in council discussions was where will the
monies from defeasement go. I have obtained information from Finance Director Harry
Takahashi which shows allocation for the funds. Mr. Takahashi informed me that the
information was shazed with the County Council; therefore, I hope that concern has been
satisfactorily addressed.
COUNTY WORK GROWS AND THE BUDGET SHRINKS
Speaking of the near future, Mayor Yamashiro calls his budget a "baze bones fiscal plan". In the
past and present cuts have been made and maintenance and purchase of equipment have been
delayed. The budget plan includes more cuts. Employees are doing more with less. How long
can this continue?
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While we can work together to seek state government assistance and relief, an examination of
raising the real property tax rates deserves attention. Intergovernmental revenue brings this
county a little over $36,000,000 annually while real property taxes raise $81,300,000 annually.
The real property tax by far is the major revenue source for the county, representing 47% of our
revenue base. We can and should examine all revenue and expenditure areas - certainly a hard
look at our largest source is warranted.
Prior to considering bond defeasement and refunding, county departments were faced with
making $2.5 million in cuts. Even with the infusion of $8.7 million from the bond defeasement,
the next fiscal year's budget is 3% less than this year's. County government is smaller in dollar
terms but appears to be required to do more.
New revenue sources are needed to continue the present level of services, add new programs, and
fund commitments.
Defeasement and refunding are parts to our puzzle. Revenue sources, expenditure policies, level
of services and programs, governmental efficiency, public and private partnerships, improving
our local economy are significant pieces.
KEEP COUNTY OPERATING
We seek your support for Ordinance Bill No. 22 so our county can continue to provide needed
services and programs within our communities.
GAR~OS Y M
Hawaii Division Chief
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