The TAT kabuki

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Every year for the past two decades, the state Legislature considers whether to appropriate all or part of the counties’s share of the Transient Accommodations Tax. This is the tax imposed on visitor rooms, and it’s a virtually universal way that attractive destinations have to soaking tourists.

Hawaii’s TAT rate of a little over 9% is actually on the low side.

Still, because tourism makes up such  big part of our economy, the total take of TAT forms the second biggest fraction of Maui County’s government income, after property tax.

This year, in a newish wrinkle, the Legislature is also making noises about appropriating the utility franchise tax that has always gone to the counties. In an editorial, The Maui News called this piracy.

It is that, but it is also a form of kabuki, highly stylized theater. Every year, the four mayors rush to Honolulu to demand that the state keep its mitts off the county TAT money. As The Maui News said:

 

 

Last week, Mayor Alan Arakawa and County Council Chairwoman Gladys Baisa were at the Legislature testifying against SB 359, which is this year’s version of “Let’s Steal The Counties’ Shares” of the transient accommodations tax. A Friday story in The Maui News said the TAT is Maui County’s second largest revenue source at $20 million to $25 million.

Write, phone, text, email or send a smoke signal to our state legislators and tell them to stop these attempted raids on county budgets.

State and county governments are supposed to cooperate to solve problems. Constituents need to remind our state legislators they expect a partnership – not a looting of county coffers.

 

This may be the year, but never yet has the Legislature actually done much about grabbing the TAT money. What is really going on is that the Oahu-centric legislators make scary noises about grabbing the TAT, panicking the mayors, who then expend all their efforts during the short legislative session defending the TAT, rather than using their time to ask the state for help for their local issues.

This allows the Oahu senators and representatives to go ahead with their own local schemes without questioning from those pesky Neighbor Islanders.

This happens because of the big imbalance in size between state and any county, even the City and County of Honolulu. Losing the TAT would be a huge blow to a county, but picking up the few tens of millions would hardly show up in the multi-billion-dollar state budget.

 

 

A more elevated view

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Funny thing how climbing the county building from the eighth to the ninth floor changes the view so much.

Mayor Alan Arakawa has an excellent summary in The Maui News about “Now is the time to fix the water system.” As this blog noted in February, we should welcome water rate increases, because the time to have begun fixing what ails the Department of Water Supply is not now but years and decades ago.

For all that time, the County Council wouldn’t raise rates to levels sufficient to maintain the system. And Mayor Alan Arakawa was no different from the rest of the council in that respect.

Now he has got religion, and a good thing, too. It also appears that at least some other members of the council are coming around to the understanding that the water system doesn’t repair itself.

Right now, I get all the water I can use delivered to my house for less than the cost of a can of soda each day, so even a doubling of water rates isn’t going to break the banks of any but the destitute.

It may help, too, that the department has moved to monthly billing. We’ll have to write twice as many checks but for half as much each, which should ease the sticker shock.

For a generation at least, Maui County has had the lowest water rates in the state. It is not something to be proud of.

 

 

 

Tales from a Pawn Shop: Our coin maven visits

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One event we at Kamaaina Loan look forward to each year is Dennis Ryan’s winter visit to escape the snows of his home in Albany, New York.

Dennis is a man of many parts. During his two months or so on Maui, he consults on archaeological digs, visits antique dealers (“They’re all disappearing” on Maui) and sorts through a year’s accumulation of strange and oddball coins and paper money for us.

He is also an expert in African art, works on the archaeology of the Erie Canal, and holds a master’s degree in Russian history — for which he wrote his thesis in French. There’s never a dull moment when Dennis is around.

Over the course of a year, the pawn shop accumulates bags and envelopes of hard-to-identify coins. Typically, we buy somebody’s collection based on one or a few valuable coins, and along with it comes a plastic bag of odds and ends.

We rely on Dennis to spot the unusual rarities in this pile of junk. This year, we presented him with a large shoebox of coins.

He’s still working his way through it, but so far this trip his prize find has been a J.F. Souza merchant token.

Souza had a shop on Luso Street in Honolulu. Shopkeepers in Territorial days would pass out brass tokens as advertising and promotions, or to use in slot machines, or sometimes as a form of store credit — like today’s gift card. (These tokens still exist; think of the Maui Trade Dollar.)

The token Dennis found — and it was in a jumble with a bunch of dross, so we don’t know where it came from — is not dated, but it must be from the earliest Territorial days around 1900, since the store credit it offers is for “half a cent.”

Metcalf and Russell’s “Hawaiian Money,” the standard reference, considers the Souza token among the most valuable of the island commercial tokens, along with the Lunalilo Home and St. Francis Hospital radio tokens — a generation ago, these were valued at $100. Recently, one sold for $150. Only the very first, the Hawaiian Gazette Co., and one or two other Hawaii tokens are rarer.

The Souza token is by no means the most valuable coin Dennis Ryan has rescued from the junk pile, but the reason we value his visits is not the money he finds. It is the stories.

Some of the interesting finds are worth nothing. Monday, for example, his eagle eye spotted a faked Liberty dime. He immediately noticed the bronze showing through the silver plate. At the end of each visit, Dennis accumulates a small stash of counterfeits and fakes.

About 99% of the shoebox was uninteresting coins: some contained enough silver to be worth melting down; some still pass current (you can spend them, if you’re in the right country); and some are worth from half a buck to a dollar to a collector. That accounts for about half.

The other half end up in the scrap metal pile.

Dennis Ryan sorts coins

 

 

 

 

 

 

Good bread for everybody

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Lots of people are posting fond memories of Jose Krall, the baker and pastry cook at Maui Bake Shop & Deli, who is missing since his plane crashed Saturday. Here is our favorite.

Jose’s productions were first-rate and priced accordingly. A strawberry dressed up in a tuxedo made of dark and white chocolate, for example, cost about $3. The exception was his baguettes, the bread that is the staff of life for the French.

When a sort of imitation baguette was available at local supermarkets for $3 or so, a genuine, crusty, hard baguette from Jose cost just $1.25. I once asked him why his baguettes were so cheap when his other loaves were priced around $6. I cannot recall his exact words, but the gist was:

“Everyone should be able to afford to eat good bread.”

In his old shop, before his brief retirement, he had a poster that read, in French, “In his (the baker’s) hands, the essence of good bread.” Jose Krall was a master baker who took his craft seriously. He walked the walk.

Jose Krall, picture from The Maui News

 

A bad recipe for our reefs

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The Maui News http://mauinews.com/page/content.detail/id/565706/Task-force-s-plan-in-place-to-save–mend-coral-reefs.html?nav=10reports that after a lot of work, a local group in alliance with NOAA has come up with a summary of what is causing decline of West Maui’s reefs.

Unfortunately, diligence is no substitute for knowledge, and the West Maui Watershed and Coastal Management task force blew it. While some of their conclusions are valid, the big, expensive one is baloney. The Maui News says:

The county’s Lahaina Wastewater Reclamation Facility role involves pouring 3.5 million to 5 million gallons a day of nutrient-rich treated water underground using injection wells, Hood said. These nutrients have been blamed, at least in part, for killing coral and feeding algae blooms that strangle it.

The truth is, the treated wastewater is not rich in nutrients. It is very low in nutrients. If it weren’t for the yuuck factor and the slight possibility of disease organisms, you could drink the stuff. Hundreds of millions of people drink water a lot worse that what goes down the injection wells.

For years now, and notwithstanding the EPA spent a million dollars back in the early ’90s trying to convict the wells and failed, a band of environmental zealots have been running a campaign against the effluent. If they had merely visited the Central Laboratory and observed the testing of the effluent (done daily), they’d know better. It’s not too late. The lab operates every day of the year.coral reef

There’s a lot of bogus “information” out there about the oceans. The same Sunday The Maui News helped publicize the wrongheaded West Maui report, the Los Angeles Times ran a http://www.latimes.com/news/local/la-me-acidic-oceans-20121007,0,7494056.storystory about the dangers of an acid ocean:

Rising acidity doesn’t just imperil the West Coast’s $110-million oyster industry. It ultimately will threaten other marine animals, the seafood industry and even the health of humans who eat affected shellfish, scientists say.

Not worry though. The ocean is not turning acid, if you go swimming, your suit won’t dissolve. The ocean has been alkaline for billions of years and it will continue to be alkaline until the sun expands and burns us to a crisp.

The ocean is about as alkaline as a glass of Alka-Seltzer.

Pawn 101: You can take me to the fair

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The Joy Zone (photo by Forest & Kim Starr)

(with apologies to Lerner & Lowe)

The Friday afternoon of Maui Fair week is always busy at Kamaaina Loan. The reason offers insight into what pawnshops really mean to their communities, rather than what the common opinion is.

If you went to the fair, no doubt you saw some slightly harassed looking guys herding 8, 9, 10 or so kids through the Joy Zone and the food booths. These were good guys — uncles maybe — seeing to it that the neighbor keiki had a good, safe time.

When you start thinking about filling up 10 growing boys and girls with chili and rice, though, the cash outlay can be daunting. Quite a few people turn to the pawnshop for ready cash.

This contradicts the view that pawnshops attract the desperate, the unemployed and the near-destitute. In fact, pawnshops are able to help people in those categories, but as bank economist John Caskey was surprised to find (in a study done in the early ’90s for the Russell Sage Foundation, published as “Fringe Banking: Check-Cashing Outlets, Pawnshops and the Poor”), pawnshops reach a much wider clientele.

Most customers are employed, although many in jobs that feature periods of temporary layoffs. Caskey went to pawnshops and interviewed customers to see who they were and what they depended on the pawn lender to do for them.

He was surprised to find that a substantial part of the business came from ordinary folks who took out pawn loans for a night or weekend on the town.

Not everybody has an ATM card, and if you are contemplating spending a couple hundred dollars at the Maui Fair, there might not be that much in your bank account anyway.

A fast pawn loan could be the answer.

It is for many people.

This was the first year that Kamaaina Loan advertised its pawn loans direct to fairgoers. If you had a good time at the fair with our help, we’re gratified.

The photograph of the Joy Zone comes from the invaluable photographic archive of Maui life being added to by Forest & Kim Starr. Mahalo to Forest and Kim.

He shoulda texted

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You may have missed a  funny story in Friday’s Maui News, because it was buried at the end of an unfunny story about a pedophile.

According to police, Damien Black failed as an armed robber because the employee couldn’t read his demand letter . . . Police said previously that, because of poor penmanship, the employee was unable to read the note. The suspect became frustrated and ran off, police said.

It is not clear from the report whether he was trying to get drugs or money, but either way, it was a bad idea, badly executed.

If you need fast cash, much easier to bring your stuff down to Kamaaina Loan, where a friendly pawnbroker will help you. And you won’t have to write anything except your name certifying that the stuff isn’t stolen and that you agree to the contract.

 

Pawn 101: Lucky we pawn on Maui

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Not needed at our pawn shop

This past week’s episode of “Hard Core Pawn,” the reality show shot in Detroit featured this http://cleverrealitytv.com/2012/09/16/hardcore-pawn-94-news-flash-pawn-shops-sell-your-stuff-les-finds-a-ruby-in-the-rough-a-muscular-woman-rock-em-sock-em-robots-and-crazy-comes-in-all-colors-in-detroit/incident:

A guy then went up to Rich’s window complaining about a generator he bought less than 12 hours ago from the shop. Rich said the thing was ‘as-is’ and there was nothing he could do about it. The guy was very big and loud. Rich was arguing with the guy and Les was watching the confrontation. Rich was pissed off more than usual at this guy and he went to go out front. The customer ripped off he jacket and got ready to maul Rich and his goatee of death. The big security guards were holding the customer back. Les went outside to talk to the guy to try and help. Les said he would check out the generator and then had a repair man fix it. The guy was happy with the end result.

(From the Clever Reality website.)

To be clear, that was Detroit Rich, not Big Rich of Market Street.

Kamaaina Loan doesn’t even have security guards. No need on North Market Street.

The “as-is” sale policy is the same everywhere among the nation’s 13,000-plus pawnshops. That applies to items coming in as well as going out.

If you  bring in, say, a computer or a cellphone, to sell or to get a loan on, you’ll  be asked to turn it on, and, if necessary, enter your password.

You’d be surprised, maybe, how many people bring in a dead cellphone without a charger and expect to get money for it.

Charge ’em up at home or bring your charger with you. (And why can’t you just plug it in to the USB port on the computer on the counter? Because that’s a good way to infect our system with computer viruses.)

 

 

Real-life drama in Wailuku

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While we were busy getting ready for, shooting and then following up on the Kamaaina Loan reality TV show, a different real-life drama was working itself out around the corner:

http://www.mauitime.com/Articles-Cover-Story-i-2012-09-13-76963.113117-Mismanagement-Allegations-May-Doom-The-Wailuku-Main-Street-Association-And-Change-Our-Small-Towns-But-That-Might-Be-A-Good-Thing.html