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Mayor likely will cite budget woes in annual speech

By Laurie Au

POSTED: 01:30 a.m. HST, Feb 18, 2009

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While Mayor Mufi Hannemann may sing a happy tune at his annual State of the City address tomorrow, his speech will likely have some somber tones.

Hannemann, who calls himself the "singing mayor," is expected to highlight the city's budget deficit and solutions to address the shortfall that could be as high as $40 million this year.

"We all know that our economy has declined and many people are suffering," Hannemann said in a news release yesterday. "We also know that it will take leadership, hard work and effective collaboration to bring about the solutions our community needs."

Hannemann's aides have been tight-lipped about his upcoming speech at the Mission Memorial Auditorium next to Honolulu Hale, but several City Council members expect it to focus on the sour economy.

"The budget and the economy is front and center," said Councilman Duke Bainum. "We have to make up the shortfall and not let it fall on the backs of our taxpayers."

While Hannemann has until March 1 to send his version of the city's budget to the City Council, he may hint at his plans - including whether to raise real property tax rates.

"It's a depressed economy, assessments are low, but (raising) property taxes is always the last option," Hannemann said in a recent interview. "Our budget is very challenging."

"We're looking for revenue-generating ideas that will help fill our city coffers. We're trying to see to if we can introduce some new fees," he said.

Hannemann said earlier this year that the city is facing a budget deficit ranging form $13 million to $40 million in the upcoming fiscal year. For July 2010 to June 2011, though, the deficit could be as high as $100 million, he said.

Politically, 2009 may be a better year to increase rates because there is no election. Hannemann has said he is open to running for higher office - governor or Congress - in 2010.

"Hawaii politics is filled with a history of people looking at election cycles rather than the economic cycles," Bainum said. "I'm hopeful that Mayor Hannemann will rise to the occasion and do the right thing, not only for this year's budget but for next year's budget."

Hannemann's speech begins at 10 a.m. and will be broadcast on Olelo Community Television on Channel 54. Special guests expected to attend include U.S. Sens. Daniel Inouye and Daniel Akaka.

While Mayor Mufi Hannemann may sing a happy tune at his annual State of the City address tomorrow, his speech will likely have some somber tones.


Hannemann, who calls himself the "singing mayor," is expected to highlight the city's budget deficit and solutions to address the shortfall that could be as high as $40 million this year.

"We all know that our economy has declined and many people are suffering," Hannemann said in a news release yesterday. "We also know that it will take leadership, hard work and effective collaboration to bring about the solutions our community needs."

Hannemann's aides have been tight-lipped about his upcoming speech at the Mission Memorial Auditorium next to Honolulu Hale, but several City Council members expect it to focus on the sour economy.

"The budget and the economy is front and center," said Councilman Duke Bainum. "We have to make up the shortfall and not let it fall on the backs of our taxpayers."

While Hannemann has until March 1 to send his version of the city's budget to the City Council, he may hint at his plans - including whether to raise real property tax rates.

"It's a depressed economy, assessments are low, but (raising) property taxes is always the last option," Hannemann said in a recent interview. "Our budget is very challenging."

"We're looking for revenue-generating ideas that will help fill our city coffers. We're trying to see to if we can introduce some new fees," he said.

Hannemann said earlier this year that the city is facing a budget deficit ranging form $13 million to $40 million in the upcoming fiscal year. For July 2010 to June 2011, though, the deficit could be as high as $100 million, he said.

Politically, 2009 may be a better year to increase rates because there is no election. Hannemann has said he is open to running for higher office - governor or Congress - in 2010.

"Hawaii politics is filled with a history of people looking at election cycles rather than the economic cycles," Bainum said. "I'm hopeful that Mayor Hannemann will rise to the occasion and do the right thing, not only for this year's budget but for next year's budget."

Hannemann's speech begins at 10 a.m. and will be broadcast on Olelo Community Television on Channel 54. Special guests expected to attend include U.S. Sens. Daniel Inouye and Daniel Akaka.

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