The vast majority of the lawmakers believe -, that the way to stimulate the economy is to raise taxes and increase government spending and increase government bonded debt. Thus a series of construction projects being unveiled this year including highway, harbor and airport modernization plans totaling more than $11 billion over the next few years. The Department of Transportation Director Brennan Morioka, flanked by Senate Transportation Chair Kalani English, D-Maui County; House Transportation Chair Joe Souki, D-Maui; and Gov. Linda Lingle, unveiled their 6-year, $4 billion highway expansion project. The $48 million, half-mile phase 1A of the bypass highway would run from Lahainaluna Road to an extension of Keawe Street. It is intended to relieve traffic along the Honoapiilani Highway through Lahaina town and the Kaanapali Resort, which is frequently jammed to near standstill from visitors heading to their hotels when workers are usually heading home. 

Native Hawaiians who spoke out stated their heritage and then their opposition to a plan that they said could further disrupt burials as well as cultural sites — and promote further high-end development in West Maui. Planning for a Lahaina bypass began more than 30 years ago and has been regularly stalled by disputes over the route and the costs.

Their proposal will be funded by a series of tax and fee hikes including:

    • A 10-cents-per-gallon permanent tax hike on gasoline (from 17 cents to 27 cents a gallon). Hawaii already has the highest combined federal, state and local gasoline tax in the nation at an average of 66 cents per gallon. That will increase to an estimated 76 cents per gallon;
    • A $20 hike in the state vehicle registration fee (from $25 to $45 – these amounts are in addition to city fees already charged);
    • An increase in the state motor vehicle weight tax from ¾ cents per pound to 2 and ¾ cents per pound (in addition to city vehicle weight charges);
    • And a $2 additional surcharge on rental car fees per day (from $3 a day to $5 a day). Recents statistics have shown that nearly 35 percent of residents use rental cars.

Molokai and Lanai, which already have the highest gasoline costs in the state, and aren’t benefitting from the projects, will be exempted from all the tax and fee hikes, English says.

Their pitch: The plan, once completed, will save time, save money and save lives.

    • Time, because those driving will cut their driving time from 65 minutes to 30 minutes in peak traffic hours; Maui drivers will also see their transit commutes to Kahului cut, English says.
    • Money, because even though the tax is being hiked on the gasoline and there are other fees, Morioka says the roads will be in prime condition so there will be a decrease in car repair bills and gasoline used;
    • Lives, because 140 people die on Hawaii roads every year, and Morioka says better roads means at least 40 lives will be saved a year reducing fatalities from 140 to 100 every year.

The facts: According to the state’s own figures, the transportation fund, which is fueled by state gas taxes, is in a $85.9 million deficit in FY 2009. See the chart here: Highway fund chart

Our House and Senate raided the DOT highway fund to the tune of $140 million over the last decade to fund their own district projects.

None of that $140 million was spent on improving the roads and highways and making bridges safer, as it was supposed to be.

The Hawaii State Legislature opened with lawmakers talking about tax cuts, raiding the unemployment fund, deferring or capturing the 12.5 percent general excise surcharge that now goes to the city’s rail project, tweaking the ACT 221 high technology credit, and legalizing gambling.

However, the discussion of “tax relief” is just a smokescreen to keep taxpayers appeased until lawmakers come in for the kill. With a $1.8 billion deficit on the horizon, there is no way taxpayers will get tax cuts unless they have a strong public force at the capitol this session – and based on the past decade, that will be a challenge of monumental proportions even though Hawaii is already the fourth highest taxed state in the nation.

Read More http://www.hawaiireporter.com/story.aspx?0f9a9d2e-6a48-4e6a-b7c0-5cc14e7a00d7


MAUI, MOLOKA‘I (36 projects; $578,940,000)
On Maui, a number of projects aimed at improving highway capacity are ready to move forward to keep pace with future traffic demands. These include the $175 million construction of the Lahaina Bypass Road and $186.5 million for the Kihei-Upcountry Road.
Twenty-five million dollars would also be earmarked for shoreline protection projects on Honoapiilani Highway, Kahului Beach Road, and North Kihei Road. Additional projects slated for Maui and Moloka‘i are listed below:
Highway Capacity
Lahaina Bypass:
o Phase 1B1, $48 million
o Phase 1B2, $58 million
o Phase 1C, Keawe St Extension to Ka‘anapali Connector, $69 million
Pu‘unene Avenue Widening, Wakea Ave. to Kuiheliani Highway, $5.53 million Hana Highway Widening, Ka‘ahumanu Ave. to Vicinity of Airport Access Rd., $8.5 million Kihei-Upcountry Road:
o Phase 1, $86.5 million
o Phase 2, $50 million