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Hawaii ranks fourth nationally in per capita taxes and fifth in per capita spending, but public education spending ranks 45th, and services flow disproportionately to an elite that can afford private schools, according to Suyderhoud. Rees adds that politicians have long deflected outside scrutiny by insisting Hawaii is simply different; he cites a Wall Street Journal investigation of Hawaiian Home Lands mismanagement and a Money Magazine ranking of Hawaii as a tax hell, both dismissed by state officials within hours of publication. The state’s elastic tax structure — revenues rise about 12 percent for every 10 percent of economic growth — generated enough surplus that funds were shifted into special accounts to avoid a constitutional rebate requirement, what Suyderhoud calls smoke and mirrors. Rees identifies further waste: half a million dollars a year in government public relations, a publicity campaign backing geothermal energy, and the Office of Hawaiian Affairs hiring a prominent PR firm to promote its position on sovereignty. With revenue growth set to slow from double digits to zero to five percent, Suyderhoud expects the coming squeeze to force genuine priority debates. Both guests urge citizens to organize and pressure legislators directly.
Transcript
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