State Senate President Donna Kim took the Hawaii Tourism Authority to task Thursday over its annual legislative efforts, which she said have hurt the agency.
Also Thursday, the HTA board said it has selected a new president and CEO, but added that the name cannot be announced because the salary and benefits are still being negotiated.
"The person has not accepted the position, but we expect that they will," said HTA Board Chairman Aaron Sala at the agency’s monthly board meeting. The candidate was selected April 17, Sala said.
The HTA, which markets Hawaii as a tourist destination, has an $82 million annual budget generated from hotel room tax revenues. Mike McCartney, the previous president, left the $270,000-a-year job in November to become Gov. David Ige’s chief of staff.
Kim said her concern for the HTA is limited to her role as Senate president, and that she was not a candidate for the HTA job.
"I’m not interested," Kim said. "In fact, I think they are very close to naming a new person."
Meanwhile, Kim scolded the board for interfering with the implementation of House Bill 1259. The bill, which Kim introduced in a Senate version, retains the HTA’s dedicated public funding and allows it to spend up to 5 percent of the tourism special fund on administrative costs. Kim said it stalled after the HTA introduced an amendment seeking a 30 percent increase in its administrative budget.
"The bill sunsets in June, and it’s now dead because the amendment put it in jeopardy," said Kim. "In addition to the losses of your exemptions, your administration funds are now reduced to 3.5 percent, which is a serious concern because you need to function."
Ron Williams, HTA interim chief executive officer, said the board had future market expansion in mind when it requested the increase, and is now exploring its options.
Kim said she is working with McCartney on the issue. "We are talking about lessening the impact, and we are working on the bill for next year," Kim said.
Kim also warned the board about House Bill 716, which seeks a portion of HTA funds for an innovative business interaction program under the state Department of Business, Economic Development and Tourism.
"You don’t want to start the process of HTA giving money to other entities, because it’s not going to stop," Kim said.
Kim said the Hawaii Tax Foundation opposed HB 716 because it could cut the HTA’s tourism marketing budget. However, she said the HTA was noticeably absent during testimony. Kim said the HTA also failed to testify against House Bill 169, which would increase the transient accommodations tax on resort timeshares.
Williams said the HTA will be submitting opposing testimony on those bills during conference. Kim said she hoped her observations were a wake-up call for the board and reiterated that the bills will be in conference Friday.
"I will continue to work with the board and protect the industry because this is a lifeline for the state, and you folks have a very important role," Kim said.
