Equity bond issue up to voters as state, county leaders back the proposal

HONOLULU (HawaiiNewsNow) – With the backing of labor unions, contractors, and other supporters, Gov. Josh Green and the county mayors sent a unified message to voters Wednesday: “Vote yes on number 2.”

Read more Kauai police arrest wanted Princeville man near Haena State Park

Constitutional amendment question two will appear on ballots for the general election:

Shall the Hawaii State Constitution be amended to direct the legislature to authorize the counties to issue resilient infrastructure for shelter and equity bonds to fund public improvements in designated districts, repaid solely by future growth in property tax revenues within those districts, not by increasing real property tax rates, where such bonds are excluded from the counties’ debt limit and are subject to accountability and oversight requirements as may be provided by law?

It would allow counties to issue RISE, or equity bonds, to build things like roads, water and electrical systems for housing developments. They would be repaid by future tax revenues in their respective districts, supporters say, without increasing taxes.

“If you’re out there and you’re worried about your taxes going up in some other ways, they won’t. It only is new revenues from whatever we’re able to create, which is the tens of thousands of homes that we need,” Green said.

An example given was the Aloha Stadium and its ongoing redevelopment.

Housing committee chair Luke Evslin said there’s no property tax being generated off the empty parking lot currently. But the new development would pay off in the long run.

“The revenue, property tax revenue, that is generated from that new development would get redirected to pay off the bond, but there’s no extra tax on anybody living in that area,” Rep. Evslin said.

Hawaii and Arizona are the only two states that don’t utilize a RISE bond structure.

“This is a sustainable way for government to fund the necessary infrastructure that our people have been begging for without putting the burden of cost on our taxpayers’ back,” Kauai Mayor Derek Kawakami said.

Read more Six candidates vie for three OHA at-large seats

But not everyone is sold on the idea. Hawaii’s Libertarian Party chair worries this will increase government debt overall, keeping real housing solutions out of reach.

“Why not just change zoning laws for really cheap, that’s free, right?” Chair Austin Martin said.

Instead, they’d like to see bipartisan solutions focused on borrowing within the limits and existing rules.

“If we want Hawaii to prosper, we’re going to need to realize that the government has to live within its means, and same for us,” Martin said.

Every vote will matter in this constitutional amendment question because blank votes are also factored in, counting as ‘No’ votes in the total tabulation.

County mayors and the state have traditionally competed for public funds, but this would be a new source of money infrastructure.

“Getting this kind of revenue without conflict is great. I rarely see this much collegiality between county and state officials. That just tells you it’s a must,” Gov. Green added.

Read more Lawsuit filed against city, state for negligence in crash that injured surfer Dakota Briley

To learn more about the proposal, click here.