Verbatim: Did Carlisle’s State of the City Address hit the ‘hard truth’?
HONOLULU—On Thursday, Honolulu Mayor Peter Carlisle delivered his State of the City Address, pointing to fiscal and infrastructure problems currently facing Oahu.
To read the entire State of the City Address, click here
Carlisle said one of the chief problems the City and County of Honolulu faces is a dramatic increase in borrowing. He outlined his strategy in controlling the City’s fiscal behavior through professional management.
“The term “cleaning house” might be acceptable politically or even expected, but it is not necessarily the best way to run a government or a business in the private sector,” Carlisle said. “We wanted experienced and professional City leadership, so we prevailed upon those talented and knowledgeable individuals who shared our philosophy of change to remain on the City team.”
The Mayor said his administration is working to promote transparency by making financial disclosures of all City cabinet members that are required by the ethics commission available online and streamlining and expediting requests for city documents and records.
Carlisle also addressed the issue of houselessness in his speech. With $2.5 million dollars in the executive budget from the City’s affordable housing fund, the City will create an affordable housing partnership with the State.
“A new office of housing in the City, scheduled to start in July, will work closely with the State and the private sector to streamline and coordinate help to those in need,” Carlisle said. “In anticipation of the new office of housing, the City will also be launching an informational website on homelessness. This one-stop-site will provide information on City programs, answers to frequently asked questions regarding homelessness on O`ahu, and contact information for service providers and available shelters.”
The Mayor also pointed to skyrocketing pension and health benefit fund payments, hinting at major cuts. He said the latest projections show the City’s contribution to the employee’s retirement fund, or the pension fund, increasing in the next five years from $97 million this year to $124 million in 2016. The employee retirement system’s future liabilities now exceed the assets set aside to pay for them by $7.1 billion.
“Decisions made both across the street at the state capitol and here at City Hall will impact people’s lives,” Carlisle said. “This news can’t be easy for anyone to hear, and particularly difficult if you have been in the private sector without a job for any period of time, but the time has come for all of us to have a mature and honest conversation about these painful truths. Ultimately, the solution will call upon everyone to share in the sacrifice. There can be no sacred cows.”
In terms of the City’s fiscal budget, which will be announced on March 2, Carlisle said there were several main priorities: reducing long-term borrowing for long-term projects; increase certain user fees, many of which have not been raised in over a decade or more; promoting Hawaii’s film industry; and keeping the State from diverting away City funds.
“Vital to our City’s financial health, we must continue to urge the State Legislature not to divert the city and county’s share of various revenues into its own state funds,” Carlisle said. “This includes the transient accommodation tax, the public service company tax, and, of course, the general excise tax surcharge designated for rail.”
Of the Honolulu Rail Transit System, the Mayor said “construction of the rail project will not only have benefits for our struggling construction industry and infuse our economy with the benefits of added jobs, it will also improve our city for generations to come.”
Carlisle said rail will create “more livable communities” and save money in the long term on families’ transportation costs.
About sewage and water infrastructure, the Mayor said not having to deal with pending lawsuits was a highlight.
“For the first time in 17 years, there are no pending lawsuits against the wastewater program by the Environmental Protection Agency, State agencies, or environmental groups,” Carlisle said.
The Mayor also said the City was creating a family justice center to provide coordinated services to victims of family violence.
What did you think about the Mayor’s State of the City Address? Do the City’s priorities line up with your own? Please let us know by emailing a Letter to the Editor to [email protected] or by leaving a comment below.