March 1, 2008

Dear Readers of the Weekly Commentary:

It has been several months since we informed you that the Board of Directors of the Foundation was contemplating closing the doors of the Foundation. After a number of petitions from concerned members and leaders in the community, the Board decided to appeal to the current supporters of the Foundation to: (1) bring in new supporters from friends and colleagues; and (2) to increase their support by 50%. 

The Board also set a benchmark by which nearly all of the revenues needed to operate the Foundation would be raised or pledged by the end of June 2008. Although the plan seems to be ambitious, the response from current members has been heartening. Many members have stepped up to the plate with the suggested 50% increase in their support and along the way the Foundation has picked up many new members. However, the Foundation is not out of the woods.

First, the Foundation must meet the self-imposed goal of raising sufficient revenues to fund its operations for 2008 by the end of June. To that end, the Board has directed that all current members be billed by that time for the year 2008 and that current members be billed for their 2009 contributions at the end of the year. 

Second, every month the Foundation loses some members for whatever reason. Unless the Foundation also attracts new support, it will always be challenged to keep its doors open. While those businesses who have been long-time supporters obviously know the worth of keeping the Foundation at the table, with more and more new businesses opening shop in Hawaii, they need to be informed about the Foundation.  It is for this reason the Foundation must rely on its members to tell their friends, to publicize by word of mouth, the importance of keeping the Foundation as a watchdog of government.

It is not an easy task to maintain that objective perception of what is good tax policy because it means criticizing special interest legislation that comes at a cost to all other taxpayers. But that is what the Tax Foundation is all about. Over the years, policymakers have come to understand, appreciate, and respect the integrity of its research and observations about tax and public finance policy in Hawaii. They and others may not like what the Foundation has to say, but they know that what it says is good for the community at large. 

When the Foundation was established over 55 years ago, it drew its support from a handful of large companies most of which have disappeared or morphed into smaller enterprises. So it is a matter of educating a new generation of taxpayers (some of whom believe that the Foundation is an agency of government) that good government depends on an informed public and it is the Foundation’s mission to educate the public about their government. 

However, the Foundation cannot continue to do that educating without support from the community, more specifically people like you who are reading this and our Weekly Commentary. So if you are not a member, consider becoming a member. If you are a member, urge one of your colleagues to also become a supporting member of the Tax Foundation of Hawaii.

Aloha and Mahalo, 

Lowell L. Kalapa

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