One dollar leases: State considers audit of astronomy industry on Mauna Kea

HONOLULU—With the state government facing one of its worst budget shortfalls, and with a myriad solutions being considered—including higher excise taxes, higher income taxes, and significant cuts to education and health programs—one revenue source that has not been considered are monies being generated from astronomy operations atop Mauna Kea.

“For all the years we have worked for the protection of Mauna Kea,” said Kealoha Pisciotta, President of Mauna Kea Anaina Hou, “the State has claimed to not have enough funding to do any of the work necessary to manage the natural and cultural resources of the summit. Well, the State would have money if they had been charging the observatories fair and equitable rent for the last 40 years—as the law requires.”

In 1968, the Department of Land and Natural Resources leased 13,320 acres of public lands on the summit of the mountain to the University of Hawaii and the UH Institute for Astronomy (UHIFA). The lease fee for UH was set at $1 a year, and is set to expire 2033.

“State law requires fair market rent be collected for all use of our public trust land,” Marti Townsend, program director at KAHEA: The Hawaiian-Environmental Alliance said.

“Instead, for 40 years, the State has failed this duty, giving unique and sacred summit lands away for free to some of the wealthiest nations, companies, and institutions on the planet. In the midst of our state fiscal crisis, this is outrageous.”

Astronomy is a lucrative business for corporations, research institutions, and universities. Since 1979, the UHIFA has entered into several sub-lease agreements with international universities and corporations.

Last year, Yale University paid CalTech as much as $80,000 a night to use their facilities on Mauna Kea. The UHIFA also claims to own $14 million dollars worth of patent contracts.

Yet, in lieu of the market-based rent required by law for the use of public trust lands, outside universities and private corporations from Canada, France, the UK, Japan, and elsewhere were charged $1 or less to use the land.

While the observatories generate an as-yet-unknown level of revenue from lucrative viewing contracts, UH continues to seek public tax money from the Legislature. This year the UH system requested $253 million from the Legislature, including $2.1 million for activities related to Mauna Kea.

A resolution before the State Legislature would have State Auditor Marion Higa’s office perform an audit of UHIFA. The resolution, introduced by Senators Clayton Hee and Brickwood Galuteria and Representative Faye Hanohano, suggests that State taxpayers are subsidizing a very profitable operation for decades.

Senate Concurrent Resolution 227: http://www.capitol.hawaii.gov/session2010/Bills/SCR227_.HTM

Senate Resolution 118: http://www.capitol.hawaii.gov/session2010/Bills/SR118_.HTM

Background materials on Mauna Kea from KAHEA: http://www.kahea.org/maunakea/more.php?id=554_0_5_0_C