Looking at the bigger picture through open space.

“The downgrade to AA- is based on the county’s reduced financial flexibility following a substantial reduction in reserves over the past several years,” an April 24 Fitch Ratings report read. 'Expenditure growth has repeatedly outpaced revenue gains, resulting in recurring operating deficits and drawdowns in fund balance.”
- The Garden Island Newspaper, May 11th 2014

“When you're broke what do you do? You continue your spending and you continue putting into this fund? Who’s going to pay the bill? Are you going to raise more taxes?  Are you going to raise more fees?”
-Kaua'i County Council Member Ross Kagawa

“As we all know, the financial situation of this county as we see it today is going to get worse next year.  And the year after that.  So, to expect the economy to turn around.  And the financial condition of this county to turn around, this year and the year after I don’t think is realistic.” 
-Kaua'i County Council Member Mel Rapozo

"...the budget is a moral document.  the budget is a statement of values.  And I believe that we should make that statement strong here today to say that our values are grounded in preserving open space, preserving access, and preserving those benefits for future generations…. we look at what we spend money on in this county.  We lose $1 million a year on our golf course.  We’ve spent millions and millions on bad decisions with the solid waste fund.  And to take those bad decisions and those money losing decisions out on the natural environment and access and open space, is certainly something that I’m not willing to do.  If we need additional funds to fund the budget to make up for this, there’s many options… the visitor industry is a huge beneficiary of open space and public access, whether we have to increase taxes above and beyond what’s already proposed on the hotel victory industry that’s one option and the vacation rental industry that’s another option…”
-Kaua'i County Council Member Gary Hooser

“I’m not in favor of reducing.. for one year, two years, or whatever... If you start taking from it, you’re going to get used to taking from it... Need to learn how to live with us putting aside.  It's like putting aside for a college fund or a reserve.  It's a discipline and we need to learn how to do it every year.”
- Kaua'i County Council Member JoAnn Yukimura

I have two guilty pleasures in life: watching Game of Thrones and watching our Kaua'i County Council in action.  Other than one of them existing in a world where winter can last a decade, they've become almost indistinguishable from each other.  There is a palpable rolling ball of power elusively circulating through the room, and you can see each member grasping for it.  I love being a spectator to the constant verbal warfare; watching the alliances form and crumble; and, in times of desperation, watching the reversion to playground racial stereotyping.  While the battle is fierce, I do strongly believe that every member on the council holds Kaua'i's best interests at heart, they are just all pushing drastically different ideological ideas.  And, just like Game of Thrones, every week I find myself applauding for a new hero. 

The ensuing battle over the Public Access, Open Space, and Natural Resources Preservation Commission Fund is particularly exciting.  We have an obvious problem.  A $57 million surplus has disappeared in four years.  County revenue is dropping while expenses are rising.  Our bond rating has been downgraded.  And, for the first time, the county doesn't have the cash available to cover its current liabilities while maintaining an adequate reserve.  In short, we are in a fiscal nightmare.  And there are funds out there (like the Open Space fund) which are, pardon the cliche, ripe for the picking. 

Now that we are facing a perpetual budgetary shortfall we have two possible solutions:
we can either raise revenue (taxes and fees) or cut expenses.  Those are the only choices.  And, as our government officials go line by line and decide to either tax or cut on a variety of items, they are making continuous ideological decisions. 

With every decision (tax or cut) policy makers are choosing who will bear the brunt of the burden.  Raise property taxes on second homes and you increase the burden on high income folks.  Raise resort taxes and you increase the tax burden of visitors.  Raise excise taxes and you increase the burden on low income families.  Cut government services and you disproportionately impact low income families (who rely on those services).  Out of every line of the budget, the decision that our policy makers make on the Open Space fund is most illuminating as to where they stand on the ideological divide. 

When it comes to Open Space, we have the same two options:  cut the fund or look elsewhere for revenue.  However, Open Space is particularly interesting because it is large land-owners that necessitate the fund.  The more properties that we develop, the less we can access our natural resources and the more open space that we lose.  Forever.  So, the reason that the Open Space fund exists is to mitigate the impact of development on our island so that we can maintain access (Kilauea Falls, Papa'a Bay, etc), preserve our natural resources (Salt Pond, etc) and save open space (Black Pot Beach park, etc). 

So, in summary: we have a system that promotes development as a solution (as I've talked about before).  That development ultimately causes a host of problems including environmental decline and social inequality.  One practical way to mitigate the problems inherent in pursuing development is through the Open Space and Natural Resources Preservation Fund.  But, now there's no money, so our leaders are left with a choice: they can throw in the towel on our environment and our access to it by cutting the fund, or they can look at ways to raise money from those who necessitate the fund in the first place: large land-owners and developers. 

By reducing the fund 66% they are in effect saying "no" to the potential for access to Kilauea Falls, to improved access to Papa'a Bay, and to a buffer zone of open space behind Salt Pond.  By reducing the fund, our policy makers aren't even attempting to fix the situation that both necessitates the fund (over development) and is causing our current fiscal dilemma.  Without a more progressive taxation system we will continue to be in a state of perpetual fiscal crisis. 

As we transition to a balanced budget in the face of diminished growth, we all need to make sacrifices.  But, our policy makers need to ensure that they are not placing an undue burden on the environment, future generations, or on our local community.  There is nothing more valuable than our island's natural heritage.

Mayor Carvalho made his decision clear when he presented his budget (which includes a 66% reduction in funding) to council. The council members will each make their final decision tomorrow (May 14th).



-- In the continual spirit of full disclosure, I am a volunteer commissioner on the Open Space Commission.  

Kilauea Falls is now inaccessible and will be for the foreseeable future.  The Open Space Commission is currently openly deliberating about potential ways to acquire access.