Paradise lost: Honolulu taxpayers drowning in crystal clear sea of debt

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Honolulu (courtesy of Watchdog.org)
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Honolulu (courtesy of Watchdog.org)

By Malia Zimmerman – HONOLULU — Honolulu is far from the rusty ruins of Detroit, literally and, in things such as aesthetics and unemployment data, figuratively as well.

But the Hawaiian capital shares some of the same dubious traits as the broken Motor City.

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Honolulu, fiscal watchdogs warn, must curb spending, focus on its debt and address critical multi-billion dollar infrastructure problems already overwhelming taxpayers.

Honolulu City Council Budget Chairman Ann Kobayashi is concerned about the mounting bills, and about how Oahu’s aging population will pay them.

As the Honolulu City Council tries to avoid additional increases to already high fuel taxes, Kobayashi said the council is considering several “revenue enhancements.”

The council wants to cover $2 billion in costs for operations, another $15 billion for infrastructure repairs and $5.2 billion for a planned elevated rail project.

The U.S. Environmental Protection Agency in 2009 ordered the county to spend $2 billion to upgrade its Sand Island and Honouliuli Wastewater Treatment plants. The wastewater system needs another $3 billion in upgrades and repairs.

The roads, annually rated among the worst in the nation by the Reason Public Policy Institute and TRIP, require $100 million annually in repairs over the next 10 years.

Panos Prevedorous is a professor of engineering at the University of Hawaii who consults with governments around the world about infrastructure. The problem on Oahu is more complicated than simply repaving roads, Prevedouros said.

“We have problems with signage because we cannot see them at night. Our electrical systems, sidewalks, markings, cameras and sensors all need significant upgrades. And that adds up quickly.”

In addition, Oahu has a number of functionally obsolete bridges, Prevedouros said, some that fall under the city’s jurisdiction.

“The bridges are very narrow and not safe for drivers or pedestrians.”

Oahu has, on average, one water main break a day. To make the necessary repairs, ratepayers will need to invest some $2 billion.

A park restroom facility at the popular Maunalua Bay in Hawaii Kai has been closed since February 2011, waiting for a $350,000 upgrade to its sewer system.

It’s just one example of problems, found in the dozens of parks and recreational facilities across the island, that will cost more than $1 billion to repair.

Besides basic infrastructure, the city plans to build a 20-mile, $5.2 billion elevated rail project, from west Oahu into town. The project, which has already cost taxpayers $1 billion, is on hold — a federal lawsuit that could end the rail project will be heard Aug. 15 in the U.S. Court of Appeals.

Honolulu already spends 19 percent of its operational budget on debt service, Kobayashi said. If the rail project is built, Kobayashi said, that number would exceed 20 percent and even rise as high as 24 percent. “We were at 13 percent in good years,” Kobayashi said.

Adding to the money woes, the city must set aside $200 million for police pay increases and another $30 million for medical costs. The fire department’s new contract negotiations are under way.

Hawaii has a high cost of living, with many residents working two or three jobs just to live here. Koabayashi wants to cut city spending but said some fees could increase.

“I worry about how we will pay for all this,” Kobayashi said. “Many of our residents are elderly on fixed incomes and we already are hearing from them about how difficult it is to pay the water and sewer rate increases.”

The city’s homeless population – around 5,000 on Oahu – rose 4.7 percent this year. In addition, the number of homeless people living on the streets, rather than in shelters, climbed 11 percent, according to the latest Homeless Point-in-Time Count.

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38 COMMENTS

  1. Honolulu is the biggest urban shit pile in the Pacific. I lived there once and wouldn't live there again. It's a city for the rich. It treats the homeless worse than dogs. They average Joe needs three jobs to make a half-way decent living. The elevated rail project is the biggest boondoggle ever foisted on the public and will not solve the traffic problem. Its fake to the core. If I had tourist dollars to spend I wouldn't recommend Honolulu. Go to Bali instead. Honolulu is getting what it deserves. It is not sustainable and it has a future very much like that of Detroit.

    • "if I had dollars to spend, I wouldn't recommend honolulu".

      hahaha! angry, delusional, broke-ass old goat. we're glad you moved back to your trailer lot on the mainland.

    • Honolulu is hardly comparable to Detroit. There's no comparison in terms of climate, crime, safety, and overall desirability of living. So what if you lived here once. That makes you an expert. It sounds to me like you had a bad experience for whatever reason and took that view with you. If you prefer Bali to the U.S, fine, spend your money there. Despite its many flaws, Honolulu remains one of the best places to live in the world. Yes, it has problems, but what major urban area doesn't? You can live in remote areas and tout how great and pristine they are, but not everyone wants to live in an isolated area. At least in Honolulu you have access to some of the best beaches and weather, and can still access modern culture and necessities of life. Yes, there is urban sprawl and development but that's only a testament to the desirability of living here. And if you don't like Honolulu, you can easily move to one of the other islands that might be afford you the lifestyle you like. If you don't like Oahu, you probably won't like anywhere.

      • Your focusing on weather and "reported" crime only. The standard of living is quite low even if the alleged "quality" of life is high. Brain drain, limited economic opportunity for educated young folks who have aspirations, and a dilapidated infrastructure with extortionist costs of goods and services have plagued Honolulu for years with resultant economic and social stagnation. No matter how successful Hawaii and its corrupt politicians are in swindling billions in financial assistance from American taxpayers and the U.S. Federal government in the future, I don’t think its really going to matter – I don’t think it can save this island or this state. Thirty-years from now, I firmly believe that the atmosphere here in this state is going to be virtually unrecognizable! Its gonna have the look and feel of intercity Managua or San Salvador – its eroding that quickly

    • Good. I'm happy that you moved away and have no plans in coming back to visit. So STAY AWAY. STAY FAR FAR away!!

      • that's all you locals can say & exude–your pompous island pride, & "go home haole" attitude. you can have your crappy little overcrowded, overpriced rock!

    • I've spent a considerable amount of time in both Honolulu and Bali, and the two don't compare at all. Yes, your tourist dollar will go farther in Bali, but generally Bali is over-populated, polluted, and third-world. Eating at most restaurants will make you ill. Drinking the water in Bali will make you ill. Emergency services are rare, incompetent and unaccountable. Balinese police routinely threaten and shake down tourists for bribes. The corruption in Bali goes all the way up to the top.
      Honolulu has its problems (as do all large American cities), but it is very clean and civilized compared to Bali.

  2. Elections have consequences, but the powers here in Hawaii are democrats. Even if people wanted to vote them out, they would soon find there is no alternative, it is a one party state with a news media that is in the hip pocket of the machine, just as Detroit was, it will lead to the same result.

  3. Regarding the many ways in which the City of Honolulu’s (or Hawaii’s) declining social atmosphere resembles Detroit – you are absolutely correct – there really ‘is’ a meaningful comparison there. Its obviously many years away yet, and there are some notable differences between the dynamics of the two cities, but there are also scores of striking similarities. Here’s just a few that could rate in the Top10:
    1. Poor performance in schools with higher than average dropout rates.
    2. Low aptitude scores from sub-standard primary and secondary education systems.
    3. Sub-standard technical/professional skill sets with little access to education or training.
    4. Lack of ambition and motivation to succeed.
    5. High teen pregnancy rates.
    6. High rates of alcohol and drug abuse.
    7. High rates of domestic violence.
    8. Increased dependency on all forms of public assistance.
    9. Political and police corruption.
    10. Intense racial undercurrents.
    11. Few professional jobs, the working poor predominate

  4. CONTINUED: That’s just to name a few. In addition, Hawaii does not enjoy the immense manufacturing base that Detroit once knew, so other than increased income and property taxes on its working class and the extreme military influence, there are no meaningful sources of revenue for Hawaii to lean-on during the gradual decline. Locals like to boast-up the significance of the far east (Japanese/Chinese) economies and their influence on Hawaii, but that’s empty hyperbolic rhetoric. Japan’s economy was at ‘twilight’ a decade or more ago, and China (who is literally cracking-open the champagne as we speak over Detroit’s recent bankruptcy), does not lend its money to anyone for free. Think again, Hawaii.
    Nope, remove the U.S. military spending and/or U.S. public assistance from these lovely little islands, and its game-over, period! In fact, if they were to reduce either one of those significantly, the exodus from here would be almost ‘biblical’ in scale.

  5. Bunch of grumbling malcontents.
    This is as close to paradise as one can get on this earth.
    Much stablier goverment than in Carribean or South Pacific.
    Tourism booms constantly,
    Weather as close to perfect as anywhere.
    Great health care.
    Clean water and air.
    Beautiful ocean.
    Beautiful trees and flowers.
    Wonderful cross cultures and foods.
    Great bus system.
    Wonderful parks and beaches.
    Good courts and mostly good honest politicians.
    Do need
    Higher wages.
    More land out of AG for more housing land to cut very high shelter costs.
    More affordable housing
    More carefull spending – like getting ready for people to live longer and need for money for health
    care.
    Government pensions may be to generous.
    Better care for poor and homeless.

  6. I have lived on Oahu for a few years after being raised in Indiana. I absolutely love it in spite of the high cost of living. Yes, like almost everywhere else, there is corruption, alcoholism, broken homes, homeless folks, etc. But I have to strongly disagree with any close parallels to Detroit. I know that city. It was grossly mismanaged and ruined by overly generous and unsustainable pensions and a city government and work unions with extreme tunnel vision. What Hawaii has going for itself is its tourism and Defense industry. Hawaii is in a tremendously strategic area of the Pacific, so the military complex is not going anywhere. The Asian tourists keep coming back and are spending their currency here. Detroit — not so much.

    • Noted, however, tourism is a low wage service sector job that pays paultry wages for the average Joe. Unionized labor will eventually kill this state as it's unsustainable. Yes; the military is Hawaii's bread and butter. However, now that Inouye and his influence are gone; one can foresee a decline in troops statione here as the military will downsize. Danny knew that without a manufacuring base and few opportunities for young people to have a better life; he needed that place funded and supported by mainland taxpayer dollars. The strategic location is important; however; it's also been hyped up by Danny. To this day; the Russians and how they manipulate the middle East is still a far greater threat. Cost of living, Jones Act, no vision of the future, and loss of young brain power contines to plunge the place akin to being in communist eastern Europe of the 1960's. It's a place for older established folks with money; hardly a progressive place for the best and brightest.

  7. I don't know of any U.S. city that even comes close to helping the homeless as Honolulu does. Some of these guys have a busy day hitting both IHS, then River of Life for Breakfast. Then catch a number 22 bus to Waikiki to rob some beachgoers (all in front of HPD) back on the bus with time to stop off in Chinatown and by some crack in front of the market off of River Street, smoke it at the A'ala Park bathrooms, walk to IHS 'cause it's lunchtime. Then hit River of Life, and A'ala Park, where a church serves them a third lunch; drop and take a nap, then get a bottle of beer and head to dinner at IHS, the Tongans are serving Spagetti and baked chicken, over to River of Life to eat again and then get in line for a bed at IHS, have a shower and walk over to the IHS Woman's Shelter and see if you can trade that wallet you stole from some white tourest for a female favor, walk to Kmart and use EBT to get some snacks, smoke a joint at the then watch TV till lights out.

  8. Detroit went bust because over half the population has moved out within the last 50 years or so.a key source of revenue for the city went dry as tax-payers in Detroit "voted with their feet." just one of the main reasons the city went belly=up.and so far,it looks like there could be a slight declineof population in Honolulu,overall population is increasing thruout the state.the one overall concern for me is the DEBT that is multiplying in our cityand county and state.the impact of this irresponsibility of our politiciansand other city and state bureaucrats is very disturbing,because the next generation of young people in Hawaii will unfairly inherit this mess that has been createdin the last 50 years or so.DEBT. the fault also lies with all those ignorant low informed voters who time and time again vote for the same political machine. the Democratic party.the same party that always talks up a "concern" for our children of Hawaii will leave them a mess and a moral hazard.

  9. Politicians and Socialists never solve problems…..They just postpone and foist it onto the next generation in hopes of better times….all the while getting as much of the free goods and services they can

  10. Just for grins, let’s take a closer look at the reasons often cited for Detroit’s decline and see if there are any meaningful comparisons with Honolulu or Hawaii. Other than a single comment or two, I won’t bother to elaborate on any of these or to make any direct comparisons to Hawaii or its current social atmosphere, but according to numerous sources, here are some of the top reasons that led to Detroit’s demise:
    1. POPULATION DECLINE: Despite what you may read in the local press, ask any local mover or moving company in the state of Hawaii, and they will gladly tell you that the number of families exiting Hawaii for the U.S. Mainland and elsewhere easily exceeds the number moving into Hawaii. Ultimately, as Hawaii’s population continues to age and the number of ‘taxable’ workers decline, and as people exodus the islands, it will decline
    2……………………..

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