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Mayor Accuses State Of Delaying Transit Tax Collection

Hannemann Asks Council To Add $5 Million To City Budget

POSTED: 6:27 pm HST June 7, 2006

Mayor Mufi Hannemann accused Gov. Linda Lingle's administration of dragging its feet on collecting the new transit tax in January.

Hannemann tried unsuccessfully on Wednesday to get the Honolulu City Council to make a $5 million loan to help the state start get it going.

The mayor said a transit system for Oahu is a top priority. However, he said there

"It is clear we continue to have problems with the Lingle administration accepting the fact that the Legislature said they must to collect the tax.

The Lingle administration said its current problem is that lawmakers failed to approve $6 million to pay a private vendor to collect the tax for transit.

In a surprise last ditch effort officials from Hannemann's administration on Wednesday urged the council to appropriate an additional $5 million in the new county budget to help the state start collecting transit taxes.

Most council members were outraged.

"The state screws up. This is their screw up. Why do we have to pick up the pieces for the state's screw up?" Councilman Charles Djou said.

"The mayor has had a discussion with leadership," a representative for Hannemann said.

Hannemann said he doesn't blame council members, but called the situation dire.

"What it does mean is that we may be delayed in collecting the tax in Jan. 1 if the governor doesn't sit down with her state tax director and make it a priority for them to do this," Hannemann said.

State Tax Director Kurt Kawafuchi said he is very concerned there could be delays and is looking for other solutions.

The mayor said he will not give up if the Lingle administration continues to drag its feet on collecting the transit tax he'll consider going to court.
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