Jan. 10, 1966: G.O.P. calls for repeal of Act 97

Republicans today called for repeal of Act 97 of the 1965 Legislature and cited the Hawaii State government as the “most powerful centralized State government under the U.S. flag.”

Act 97, the sharpest upheaval in government relationship in recent years, was enacted by the Democratic-controlled Legislature last year.

It abandoned a tax-sharing system of many years, under which the State shared its general excise tax revenues with the four county governments on a formula basis.

While it took away from the counties more than $20 million in revenues annually, it also took away some of the financial burdens such as school construction and maintenance, construction and operation of public hospitals, medical and hospital services to pensioners, burial of indigents and administration of the district courts.

The “position paper,” fourth in a series under preparation by the 12 Republicans of the House of Representatives, cited numerous Democratic platform pledges to strengthen “home rule” in Hawaii.

“But it is a matter of record,” the report said, “that since the Democrats took control of our State government in 1962, there has been the greatest single shift toward centralization of power to the State government in modern Hawaiian history.”

Act 97, the report said, leaves the county governments with only one significant source of revenue, the real property tax.

“As a result of the Democratic State Administration’s thirst for ever greater power … the decision-making powers of the Neighbor Island county governments were reduced to the low ebb of policing parks, bars, and maintaining county roads,” the report said. …

The Republican report noted also that the G.O.P. will attempt to strengthen community development in the Islands through legislation to establish “subordinate service areas.”

This system, in use among some 20 Mainland States, provides for government services in areas within a county and financed solely from revenues in the area.