Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 6, 1 June 1997 — Playing politics with airport landing fees and ceded lands [ARTICLE]

Playing politics with airport landing fees and ceded lands

Since 1980, the state has paid the Office of Hawaiian Affairs (OHA) a share of airport landing fees. These fees are due to Hawaiians because portions of state airports are on ceded lands; a percentage of landing fees are shared in lieu of proprietary rent. The current landing fees were negotiated between the airlines and the state with the Hawaiian entitlement already in mind — just pennies from eaeh overseas round-trip ticket. Last June, a draft report was leaked suggesting the state had exceeded FAA guidelines by using monies from airport landing fees for several different purposes, including highway widening, airport landscaping, use of airport facilities by state agencies, and payments for the use of ceded lands at state airports. It was the last item — payment for ceded lands — that drew the greatest attention of politicians, airline lobbyists, and the news media. And curiously, it was the use most directly related to airport operations, since the payments are made in lieu of rent. Almost immediately after the preliminary report, the state administration suggested the

opinion was reason to strike down all of Act 304, the landmark 1990 legislation that established the formula by whieh ceded lands revenue is shared to benefit Hawaiians; this argument was still being repeated by some lawmakers last month. OHA Trustees said the administration's action was the first of many attempts to play politics with the landing fees issue...to the detriment of the Hawaiian people. Recently, Acting Federal Inspector General Barry L. Valentine said that sharing such airport revenue with Hawaiians is not in eomplianee with FAA guidelines, leaving the state to either challenge the opinion, or make alternative arrangements with OHA for the use of ceded lands. The Senate Hawaiian Affairs Committee called on the State Attorney General Marjorie Bronster to formally challenge the ruling. Meanwhile, over $9 million is still owed to Hawaiians for the past year of airport "rent," and is being withheld by the state. OHA's current budget is therefore short by the same amount. Continued on page 3

Landing Fees Continued from page 1

Airline industry supports legislation slashing money owed Hawaiians The Airlines Committee of Hawai'i (ACH), an airline industry lobby group, took the landing fees issue and a July ruling by Judge Daniel Heely and bundled them into an elaborate "worst case scenario" suggesting that airport ceded land payments would bankrupt the state, and ruin the islands' visitor industry. The Airlines Committee's "informational briefing" was held in Gov. Benjamin Cayetano's office. OHA was not invited to present its views. The Airlines Committee testified repeatedly at the State Legislature, in support of legislation that would slash payments to Hawaiians for ceded lands throughout the state. Airlines Spokesman Jeff Watanabe testified that the lobbying group "takes no position on any legislation...nor does the ACH take any position on the pending lawsuit between OHA and the State." OHA's Trustees, however, said the purpose of the airlines "worst case" testimony was an undeniable effort to scare lawmakers. The Airlines Committee's alleged neutrality became suspect, when it filed to join the State's appeal of the Heely decision. Public says state should pay A statewide opinion poll shows that by a margin of more than two-to-one, people believe that the State should resume airport landing fee payments to OHA and honor the pre-existing agreement made between the State, the airlines, and Hawaiians. Fifty-seven percent said that Hawaiians should be paid a percentage of landing fees, while only 25 percent were against it. The poll has a margin of error of plus or minus 3.2 percent. The reasons most often cited by respondents eentered around the eommon sense fairness of the issue — everyone invo!ved agreed to the payments, there is no dispute that the airports occupy ceded lands, that if you use someone's land you should pay for it, and that a promise is a promise. The $9 million is currently being held in escrow; payment to OHA would not impact funding for other State programs or services, Trustees pointed out. OHA has made its position on the landing fees issue clear: the airlines and the State enjoy the benefits of generating revenue on the ceded lands that eomprise a portion of airport facilities. Therefore, under the covenants in the Statehood Act, the State Constitution, and Act 304, the State and the airlines should share in the responsibility of making part of those revenues available to benefit native Hawaiians. House Bill 2207 OHA's Trustees reported blatant acts of political manipulahon in the last week of the legislative session, during conference committee meetings over the fate of House Bill 2207. Throughout the week, members of the administration began leaking word of an imminent decision from the FAA confirming last June's preliminary opinion. Testimony from Bronster cited unnamed "sources" for this information; unfortunately, no one ever asked Bronster who the sources were or why the information eame on the eve of major decision-making by legislators. Coincidentally, airline representatives were in Honolulu for talks with state officials and to attend a Cayetano fundraiser. Just hours before the legislative deadline, part of the FAA's final opinion was released — but only the portion related to ceded lands and landing fees. House conferees simultaneously produced a new draft adding landing fees language into H.B. 2207, even though it had never been part of the bill before. The political timing of it was transparent, observers said. OHA Trustees wonder where it will all end, and ask if our state government is working on behalf of its citizens or for mainland airlines, who are already earning record profits. Hawaiians should not be treated as pawns, to be used to increase corporate profits, balance state budgets, or achieve the short-term politieal goals of others, the Trustees agreed. i I i