By Paul Smith
Did you know that our City spends more on DEBT SERVICE than any other single expense category except for public safety? Imagine, the City spends almost as much on interest as it spends for all our public safety - fire, police, ambulance, etc!
The Mayor and the City Council cry crocodile tears about being concerned for the taxpayer BUT taxpayers should know them by their actions. On Wednesday the Council approved and lot of new taxes and fee’s plus the Mayors request for +$1 billion in new bonding (aka DEBT) authority (primarily for the train). The interest only on $1 billion more debt will make DEBT SERVICE (aka interest payments) in the City budget greater than all public safety expenditures planned for 2010!
Honolulu will be considered a DEBTOR City/County when interest payments exceed any other budget expense category and as such DEBT will drive future decision making. Our City Council and the Mayor are using our property values as security for all the DEBT that will tie residents down to ever growing debt service that will insure next year taxes must rise again to pay higher interests payments on growing debt.
Do not expect these politicians (i.e.The Mayor and the Council) to cut public employee numbers or wages. Efficiency, they do not know the word. No, the City politicians will let wages and debt rise and services deteriorate so that Honolulu will soon be in a tighter spot; interest payments greater than even the cost of public safety. When uncontrolled interest payments dominate the City Budget; residents will be crying out for higher taxes. Believe me, with the current group of spending politicians running this City; we will get tax increases galore!!
Paul Smith is the President of the Hawaii Republican Assembly.
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