Hawaii, the time has come to get serious about funding state efforts for “climate mitigation and resiliency,” as the governor’s office terms it. The Legislature and governor’s office must cooperate to get a Climate Mitigation and Resiliency Special Fund up and running, and to fund it with all three of the proposals that are currently circulating: a hefty collection of interest earned on the state’s rainy day fund; an increase in the the state’s transient accommodations tax; and an admission charge for visitors at popular state attractions.
The state House has given a very preliminary approval to bills advancing two of these efforts, passing them through the House Energy and Environmental Protection Committee on the way to a make-or-break slot on the House Finance agenda.
>> House Bill 1076 creates a climate fund, paid into by collecting the estimated $66 million in annual interest earned on the state’s $1.5 billion rainy day fund. The new fund would be placed within the state Department of Defense, which addresses “hazard mitigation and disaster readiness.”
>> HB 1077 authorizes a climate fund as well as an Economic Development and Revitalization Special Fund, paid for with money from an increase in the state’s transient accommodations tax (TAT).
A House bill advancing plans for a cell phone app to process fees for visitors to state sites such as parks, hiking trails and beaches made it all the way to conference committee last year before dying. This approach must also be part of the state’s strategy.
A Climate Advisory Team (CAT) created by the governor estimates the state needs approximately $275 million in each of the next five years to address growing climate threats — by, for example, hardening homes against flood, fire and windstorms, or reinforcement/replacement of public infrastructure. As of now, Hawaii doesn’t have that kind of money to spare.
Hawaii traditionally has turned to federal sources for both disaster resiliency funds and disaster response. However, the feds can’t be counted on to bail Hawaii out of the next disaster — and there will be a “next disaster.”
The current presidential administration has raised the specter of dismantling the Federal Emergency Management Agency and defunding other federal programs supporting climate-change resilience. Continued funding to protect endangered species, in added peril because of climate change, may also be at risk. Hawaii needs its own dedicated, state-level fund for long-term, strategic planning and protections.
In the wake of the disastrous, deadly wildfires that destroyed Lahaina, confronting Hawaii with crisis points linked to climate change, elected representatives ignore or slough off Hawaii’s needs at our peril.
According to the governor’s office, funding would shore up “mitigation and resiliency” projects across the state already underway, in addition to new needs. Legislators have asked for better specifics on just how the state would allocate various funding streams — and that’s legitimate.
Let’s get more clarity on exactly where the strongest needs are, and where the state can reap the biggest benefits from spending. Much of this information has likely been pinpointed by the CAT; it belongs in this year’s legislation, to incorporate accountability.
And let’s put the disingenuous arguments against a slight TAT increase or app-based “green fee” behind us.
This year, Japanese producers of the annual Honolulu Festival announced they would begin charging a fee to attend festival events at the Hawaii Convention Center — a valid move in these higher-priced times that shows the festival’s laudable commitment to returning year after year while maintaining a high standard of quality.
Airlines and hotels don’t merely sell seats and beds — they provide access to Hawaii’s beaches, forests, parks and clean water, and benefit from the fact that Hawaii has some of the cleanest air on the planet. And visitors to Hawaii impose an expense on the state that isn’t wholly covered by the current tax structure.
Hawaii remains attractive to visitors from all over the globe, despite severe setbacks created by the COVID-19 pandemic and the Lahaina fire. Exclusive Hawaii resorts charge some of the highest room rates in the world. And tourism officials project that 1 million Japanese visitors will spend time in Hawaii this year — an impressive rise from 720,488 Japanese arrivals in 2024, showing that tourism is recovering in this sector.
Left unsaid in alarmist arguments about a TAT increase, from 10.25% to 12%, and Honolulu having the “highest” tourist tax in the world, is that the TAT is directly linked to room rates. As the U.S. travel site Explore.com stated in a review of Hawaii’s tourism taxes published Tuesday, “What makes Honolulu’s tax the highest is the fact that hotel stays are, on average, higher (more costly) than other cities.” Faulting the tax itself, without addressing what hoteliers could do for the common good, is a red herring.
As kamaaina well know, everything is more expensive in Hawaii. That is precisely why the state must seek out revenue from a variety of sources to pay for the repairs and protections Hawaii’s environment urgently needs.
