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Harry Kim <br />Mayor <br />County of Hawai`i <br />Office of the Mayor <br />Wil Okabe <br />Managing Director <br />Barbara J. Kossow <br />Deputy Managing Director <br />25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553 <br />KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 <br />(808) 323-4444 • Fax (808) 323-4440 <br />February 21, 2019 <br />Senator Donovan M. Dela Cruz, Chair <br />Senator Gilbert S.C. Keith-Agaran, Vice Chair <br />Committee on Ways and Means <br />Dear Chairs, Vice Chairs, and Committee Members: <br />RE: SB 1428 Relating to the County Surcharge on State Tax <br />Thank you for this opportunity to testify in favor of SB 1428. But first, I would like to thank you for your <br />support for the Hawaii County disaster recovery bills, SB 1302 and HB 1180. You know how important those <br />bills will be for our entire community, and we are grateful and want to publicly acknowledge all those who <br />pulled together to get us this far. <br />With respect to SB 1428, a top priority for me this Session is to get some flexibility in how GET <br />surcharge funds can be spent. SB 1428 does this in a way that would be straightforward, but without being <br />open-ended. It would be very important for Hawaii County, but would benefit the other neighbor islands as <br />well. <br />This Committee was willing to give us flexibility last year, but the language that was used created <br />concerns. This time around, the authors worked to make sure the language would be acceptable to all parties, <br />and we believe they have accomplished that. <br />Please be assured that it is not our intent to downgrade transportation, which is the present beneficiary <br />of GET funding. Rather, each County has expressed different unmet needs for which a funding source has yet <br />to be identified; for example, "public safety" for Hawaii County, or "infrastructure" for Kauai. Higher <br />contributions to ERS and other post -employment benefits have had significant impacts on our ability to fund <br />operations throughout the county. For Hawaii Island, dealing with multiple natural disasters, the cost of <br />providing public safety during these events has taken its toll and depleted our funds. <br />Please give SB 1428 your favorable vote. <br />Re pectfully Submitted, <br />lam-= <br />Harry <br />MAYOR <br />County of Hawai`i is an Equal Opportunity Provider and Employer. <br />