The recent dust up between Gov. Linda Lingle and Honolulu Mayor Mufi Hannemann was entirely predictable because it isn’t really new but merely a continuation of their long running debate over the issue that began when Lingle decided to not veto the General Excise tax increase and let it pass into law.

Almost exactly a year ago Lingle and Hannemann were wrangling over whether it was the city or the state’s responsibility to collect the tax. The mayor said the state should but that provision was not written into the law. The governor threatened to veto the bill because it lacked the provision delegating the responsibility of collecting the tax to the city.

In the end the governor relented upon the proviso that the Legislature provide her “in writing” a promise to modify the law in the next session and upon verbal assurances from those in the majority party, allowed the tax increase to pass into law without her signature. In other words, she got snookered.

The first mistake the governor made was not honoring her pledge to not increase taxes and failing to veto the bill outright. Had she simply done this she wouldn’t be in the position she is today. The second mistake was believing those in the majority party would honor their word and modify the bill to assign the tax collection chores to the city. When the time came those who had given her such assurances abruptly reversed their positions and claimed they made no such promises. This too was entirely predictable.

The Legislature, in its typical dysfunctional fashion, failed to pass a bill this year appropriating funds to implement the collection of the tax at the state level so now the governor is saying the state cannot collect the tax. And the mayor, in response is threatening to sue.

Isn’t this a fine kettle of fish?

At this point taxpayers have to wonder how much this debacle is going to cost in legal fees. The mayor vetoed a bill banning street performers from certain sections of Waikiki at the beginning of the year because of a purported concern for legal costs but that apparently doesn’t concern him here, even though both the city and the state will incur such costs should this turn out to be a protracted scuffle.

There is a certain level of irony that the city and the state are squabbling over a mere $5 million dollars on a project that will probably cost $5 billion or more. It sort of demonstrates the fact that this state doesn’t have the resources to build the monstrosity it is contemplating in the first place and should shift its priorities.

The GE tax increase money could to go to any number of transit options but the mayor has stated several times that rail takes precedence over any other transit plans. This despite the fact that all parties involved are quickly proving they aren’t capable of managing such an extensive project. They cannot even agree on how to collect the tax.

This has turned into a long running tragicomedy where the antics of our elected officials provide the comedy and the method of fleecing the taxpayers for a boondoggle is the tragedy. The most that can be hoped for at this point is that the wrangling will continue long enough for the federal government to throw in the towel on its funding for the rail project and everyone can return to the drawing board to come up with some truly practical and efficient solutions to the traffic problems of Oahu.

Don Newman, senior policy analyst for the Grassroot Institute of Hawaii can be reached at: mailto:don@grassrootinstitute.org