Gov. Green signs final bill, frames revenue picture and strategizes on Senate pick

CINDY ELLEN RUSSELL / CRUSSELL @STARADVERTISER.COM Gov. Josh Green held a news conference to summarize the new legislation recently signed into law and to address the vacancy with the Hawaii State Senate District 22 seat at the state Capitol on Wednesday.

1 /1 CINDY ELLEN RUSSELL / CRUSSELL @STARADVERTISER.COM Gov. Josh Green held a news conference to summarize the new legislation recently signed into law and to address the vacancy with the Hawaii State Senate District 22 seat at the state Capitol on Wednesday.

Gov. Josh Green signed one bill Wednesday that became the last of 253 enacted into law this year, and described this year’s work with Hawaii lawmakers as collegial.

During a news conference in his office at the state Capitol, Green reflected on much work during this year’s legislative session that included helping Maui recover from last year’s wildfire disaster and approving the largest tax cuts in Hawaii history.

The governor also said he is going to receive some final legal advice later this month that could alter his plan to deal with a controversial vacancy in the state Senate.

Regarding this year’s legislative session, Green noted that he signed 97 % of all bills passed by lawmakers, or 253 out of 260. The last one signed was House Bill 1801, which authorizes issuance of general obligation bonds.

Seven bills were vetoed by the governor and blocked from becoming law.

There also were four bills that became law after Green trimmed financial appropriations in them totaling over $500 million, including $154 million from the state budget bill.

“For purposes of collegiality, we’re working very closely together, ” Green said. “Sometimes the administration and the Legislature have to right-fit one another. …”

Based on the funding cuts and data received Tuesday on state tax collections that were higher than forecast, Green said the general fund is projected to have a $339 million balance at the end of the current fiscal year ending June 30, 2025, instead of a previously anticipated shortfall of around $300 million.

The higher-than-expected tax receipts totaled $60 million, and Green said that an additional $400 million over the next six years is now expected.

Increased revenue would help pay for state income tax cuts that were approved through HB 2404 and are projected to reduce tax collections by $5.6 billion over eight years.

According to Green, tax savings for a person earning $75, 000 annually would rise from $995 in the first year to $2, 372 by 2031, and for a married couple earning $150, 000 with two dependents, the savings would rise to $4, 712 from $1, 975. He also said households in the bottom 40 % segment of income will pay no income tax compared with the lowest 25 %

currently.

To also help pay for the tax cuts, Green plans to propose to the Legislature next year “major budgetary reform ” that will include eliminating job positions in state government that haven’t been filled in four or five years or longer.

“Those positions will go away very likely and we will increase salaries for people that are in jobs, ” he said. “So that’s the approach, and that will save a lot of money. I don’t want to get too far ahead of ourselves today. That’s going to be a big discussion for next year.”

A lot of work next year also is needed to continue to help with rebuilding Lahaina after most of the town was destroyed Aug. 8.

Green praised state, Maui County and federal officials along with community members and organizations for their wildfire recovery work in the aftermath of the disaster, which destroyed about 2, 700 structures in Lahaina, including about 3, 500 homes, and killed 102 people.

It’s been just over 11 months since the fire, and Green said that before the one-year mark arrives, 62 households still living in hotels should be in long-term housing as arrangements are being finalized for them now by the Federal Emergency Management Agency.

Green noted that several bills were passed this year to reduce wildfire risks and to help Maui’s recovery, including a framework to phase out short-term vacation rentals, creation of a state fire marshal and recovery funding.

The state has spent about $400 million helping Maui’s recovery while the federal government is nearing $3 billion, according to the governor.

At Wednesday’s news conference, Green also said he might decide to resolve a controversy over filling a vacancy in the Senate in a different way than he indicated in a Tuesday letter to Senate President Ron Kouchi.

Green let Kouchi know that he does not want to pick someone to temporarily fill a vacant seat in the Senate created when then-Sen. Maile Shimabukuro (D, Nanakuli-Waianae-Makaha ) resigned May 31.

Under state law, the governor is required to appoint a replacement from a list of three prospective appointees submitted by the same political party as the prior incumbent, and make the appointment within 60 days of the vacancy.

This deadline falls on July 30, just 11 days before Hawaii’s Aug. 10 primary election, and two of the possible appointees—current House member Cedric Gates and former House member Stacelynn Eli—are running against each other. Two Republicans also are in the race.

Green does not want to influence the outcome of the primary election between the two Democrats by making an interim appointment while the candidates are trying to win over voters. The governor told Kouchi that he intended to appoint the winner in the primary contest after primary election results are certified.

Kouchi objects to Green’s plan, and said the governor has a clear statutory duty to make an appointment from the three choices by July 30.

On Wednesday, Green said he is seeking further legal advice on the matter, and if he is advised that he must make an appointment by July 30 then he will appoint the third person on the list, Croccifixio Crabbe, who is running for the House seat Gates is leaving.

“I’m going to get some additional legal input, ” Green said Wednesday.

The governor also said he would like to see a change made so that appointments to fill legislative vacancies would not be necessary 90 days, or more ideally 120 days, before an election.

“No governor should be put in a position where they would influence an election this directly, ” he said, calling the current dilemma a result of internal politics. “I’m trying to do the right thing. I will ultimately resolve this on or before July 30.”