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HomeMy WebLinkAboutCOM 0722.051 2016-2018From: Gordon Takaki To: Council Testimony Subject: Bill 102 GET Increase Date: Friday, February 16, 2018 9:48:16 AM Attachments: GET Testimony.docx Attached is my testimony in opposition to County BiII102 Increase to the General Excise Tax. I am strongly opposed to the increase. (7 ord.o,Taka,IGl/ PO Box 4425 Hilo, HI 96720 Tel: (808)430'5720 -10 Attention: This email and any attachment(s) may contain privileged and confidential information intended only for the use of the individual(s) named above. If you are not an intended recipient, please refrain from any disclosure, copying, distribution or use of this information and note that such actions are prohibited. If you have received this transmission in error, please notify the sender and delete it immediately from your computer without retaining any copy. Thank you for your cooperation. Ref. T®: Ref. D®te FSB I am opposed to the proposed increase to the GET and asked that the Hawaii County Council vote NO. It seems that whenever a government is faced with a budget deficit, the immediate solution seems to be to raise taxes or fees. A solution that is often not immediately recommended is furlough or hiring freeze. It's certainly not the most popular thing to do, especially in an election year. No employer wants to lay off employees, but sometimes it's necessary. The reason given why it can't be done is due to the collective bargaining process. Perhaps, but anticipated budget deficit should not be a surprise to state or county administrators and furloughs should have been discussed months (if not years) prior. Going in with a $20M deficit should not have been a surprise to Mayor Kim. After all during his 8 years as Mayor wasn't there a huge increase in county hiring? Perhaps he didn't anticipate running for Mayor again or simply forgot. I - As a note we cannot guaranty jobs, but we can guaranty good working condition and fair wages. Fair, not obscene increase as the Salary Commission recently gave. But we'll save this discussion'for a later day. The County budget has grown from $175M in 2000 to what may be $500M in 2018. We have not had a great increase in population and inflation has been kept down. Hawaii County employee growth, however, has been significant over that period of time, contributing to the budget deficit. At the Hilo informational meeting on February 13th the common theme seemed to have been the question of what the administration would do with the excess funds should Bill 102 pass and the GET revenues applied to transportation budget. The folks at the meeting wanted to know what specifically and "to the penny" the excess funds would be used for. The Real Property and Gasoline taxes were raised soon after Harry Kim -took office and a year later he's -asking for a tax increase? NO! I humbly ask that the County Council reject the proposed increase.