This county budget session is a time for bold leadership
By Gabe Johnson
The hallmark of our time is crisis. Before the fires was the pandemic and ongoing challenges including climate change, overtourism, an undiversified economy, the high cost of living and a lack of affordable housing.
Addressing these issues will require investment. The problems we face are big, so the investments we make as a county must be just as big.
These investments may include increased grants and programs to stimulate our economy, the growth of our middle class, support for our quality of life and our vibrant culture and protection for our natural resources.
Throughout my time on the council, I have often battled against a prevalent mindset of scarcity which defers or eliminates funding for long-term solutions. When projects are not fully funded by the county, state, feds or the private sector, we all fail.
Maui County residents experience the toll that an undiversified, unregulated industry has on our way of life. When we see the wealth of investors and have to work multiple jobs to barely make ends meet, we recognize inequity and understand that our islands aren’t lacking resources, we are lacking equitable distribution of resources.
Since I was elected to the council, I fought to increase our Affordable Housing Fund so we can provide housing for the hard-working local people who keep our economic engine running. With the majority of our county revenue coming from real property taxes, I proposed that we fund critical government services by raising taxes on the highest valued short-term rental homes, the billion dollar hotel chains and the luxury properties that are currently taxed at some of the lowest rates in the nation.
I have fought for fairness so that everyone’s needs can be met. Yet,
every budget session I run into the same opposition from the industry and its representatives who argue that if we raise property taxes on their properties, it will trickle down and impact regular folks.
During last month’s Budget, Finance and Economic Development Committee meeting, I had the opportunity to ask Dr. Carl Bonham, a Professor of Economics at the University of Hawai`i, Economic Research Organization, for his thoughts on raising property taxes for the highest valued hotels, short-term rental homes and luxury second homes so we could invest in affordable housing and support programs that would protect our most vulnerable.
“Property taxes on higher end properties and short-term vacation rentals all make sense as ways to raise resources,” he responded. Dr. Bonham presented slides which showed that our economic recovery depends on our ability to build and provide affordable housing for our workers.
Due to lack of affordable housing, he estimated that 4,000 people had migrated from Maui since 2022. More local people, in addition to the estimated 1,500 families who have left since August 2023, will be forced to move off island, further depleting our labor force and economy.
Our recovery depends on addressing factors that force our residents to move away, factors like the rising cost of living and the decreased quality of life.
As a county, we can insist that our state leaders and our administration do not cut funding to the programs that support our most vulnerable populations. I would counter by saying we need to do the opposite and make investments into our community, big and bold enough to match the scale of the problems we face. These investments include truly affordable housing, dignified housing for fire survivors, rental assistance, food and utility vouchers for low-income families, youth and kūpuna support programs, invasive species control, ecosystem regeneration, robust public transportation, clean parks and beaches and sustainable infrastructure—all the things we supported as a community.
We need bold leadership to make these investments now so we can reap the rewards and maintain the heart and soul of our community instead of driving our workforce away due to our lack of action.
The council’s budget session will begin on March 25, and I hope you will participate. Please feel free to reach out to my office if you want to share your manaʻo.
*Gabe Johnson is the chair of the Agriculture, Diversification, Environment and Public Transportation Committee. He holds the county council seat for the Lānaʻi residency area. “Council’s 3 Minutes” is a column to explain the latest news on county legislative and community matters. Go to mauicounty.us for more information.
