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    B.J. Reyes dies at 50: Remembered for his journalistic skills and courage

    Editor’s Note: This piece was re-published with permission of Paul Stevens, the author of this story and EditorConnecting Newsletter, a publication for former and retired AP people as well as industry friends. We thank him for allowing us to honor the life of B.J. Reyes. It was first published on Jan. 19, 2022.


    Cancer came knocking at his door when he was just 13, but B.J. Reyes was able to prevail and go on to graduate from journalism school, join the world’s largest news organization, cover perhaps the most significant presidential inauguration in the nation’s history for Hawaii’s largest newspaper and impact hundreds of lives with his bravery and never-give-up attitude toward life. 

    He worked as a newsman for The Associated Press for just 10 years – and left the AP for a job in newspapering back in 2005 – 17 years ago. 

    Yet memories of this brave man who faced a multitude of health issues, starting at the age of 13 and continuing through the remainder of his life, remain vivid among those who worked with him in four AP bureaus. And they are shared in the wake of his death last Saturday morning at the age of 50. 

    “We’re dealing with his physical absence as best we can,” said his sister, Michelle Hillmeyer. “Sometimes smiling, sometimes crying, but always grateful for the time we had with him. He faced down five forms of cancer (bone, thyroid, skin, colon, lung) AND HE WAS WINNING, plus diabetes, kidney failure, and finally heart failure. He celebrated his 50th birthday last November, then his and Lisa’s 10th wedding anniversary in December. BJ knew every day was a gift. I know he wants all of us to remember that as well, and to make sure the important people in our lives know they are important.”


    B.J. Reyes on Inauguration Day 2009 when Barack Obama became president. Photo by his Honolulu Star-Advertiser reporting colleague Rosemarie Bernardo.
    Reyes, who died on Saturday (Jan. 15) at the Cleveland Clinic, was working as associate editor of The Penn Stater magazine at his alma mater, Penn State University, at the time of his death. He is survived by his wife of 10 years, Lisa. 

    “B.J. was dealt more health challenges than anyone deserves,” said his sister Michelle Hillmeyer in a Facebook post. “It started when he was 13 years old and diagnosed with bone cancer in his leg. The first of countless leg surgeries replaced the bones of his hip socket, femur, entire knee joint with metal and plastic, which was followed by chemo. In college he was diagnosed with type II diabetes. As a young adult he had numerous surgeries to both legs to repair or upgrade the embedded hardware, or tighten up the joints. But one of those past surgeries apparently introduced a staph infection into his body, which a major leg repair surgery in late 2013 seemed to kick into high gear, going after his heart.


    In 2014, B.J. Reyes – then with the Honolulu Star-Advertiser – was interviewed about the Hawaii U.S. Senate race by Rachel Maddow on MSNBC. That interview took place not quite five months after he had open heart surgery. His sister Michelle Hillmeyer noted, “He looks so handsome and healthy on TV, was so poised and intelligent answering Rachel’s questions, very natural.”
    “His kidneys failed a few years ago, putting him on dialysis. He was hoping to be a candidate for a kidney transplant, but another cancer reared its ugly head putting him back on chemo and radiation treatment. But the infections unfortunately weren’t done with his heart…just after this new year, he was in the ER at home in State College then transferred to the Cleveland Clinic for further tests and diagnosis. Just after arriving he had a setback during a procedure – he recovered, but not enough. When it was determined there was nothing more that could be done, he started saying his goodbyes.” 

    Reyes joined the AP in Charleston, W. Va., in 1995 and transferred to Detroit a year later. He worked as a newsman there before being promoted to the General Desk in New York where he worked from 1998-2000. He was a newsman in the AP’s Honolulu bureau from 2001 to 2005 before joining the Honolulu Star-Bulletin and then the Star-Advertiser, where he worked for the next 10 years, reporting on Hawaii state politics and government, and covering the inauguration of Hawaii-born Barack Obama. 

    Reyes was born in Baltimore on Nov. 30, 1971, and graduated from Penn State with a bachelor’s degree in journalism in 1995. BJ is survived by his wife Lisa; sister Michelle Hillmeyer and her spouse Pat Hillmeyer and their sons Patrick, Aidan and Ryan Hillmeyer; brother Emil Reyes; and his mother and father, Melanie and Eriberto Reyes. Plans for a memorial will be announced at a later date.  

    Here are thoughts about BJ shared by former AP (and a Star Bulletin) colleagues: 

    Pete Mattiace  – B.J. had so much promise when he came to Charleston as a minority intern. He handled West Virginia news with ease. He worked all the desks and had earned his way to bigger places. Honolulu was his choice. When I tried to talk him out of it (!), he said, ‘Com’on, Pete, I’m not like the people around here.” Maybe, but his ability to so quickly to adapt and to master West Virginia news made him special. 

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    Jim Suhr – Being at a loss for words definitely doesn’t happen often with me, but that’s the case tonight with news of the passing of one of the most genuine people I was blessed to know. During our shared time in the Associated Press bureau in Detroit in the late 1990s,
    B.J. Reyes was a gift to us journos at a time we were chasing Kevorkian, the Red Wings were winning titles, the nation’s biggest news stories came at us hard, fast and often, and our posse salved our post-shift stresses with refuge, cold Foster’s and free pretzels at Honest John’s with our newspaper cohorts. I still consider it my most-cherished time in my three decades of journalism because our office was family, and B.J. was our sweet brother. He was a guy who just made it all fun, never mind his health challenges. He joked about his steel hip and leg and, in ensuing years, confronted what would be his five cancer diagnoses with remarkable courage and grace to the end. Rest In peace, buddy. The world is a lesser place without you, but we’re all better having shared it with you for the time we did. 

    Charles Hill
     – B.J. Reyes was an excellent journalist for the AP in the Detroit, still early in his career but a fast learner who quickly earned increasing responsibilities, becoming a trusted and strong desk supervisor in a very busy news environment. Before long, New York was calling and he was promoted to the General Desk. He contributed way more than his very good journalistic talents and work ethic, though. B.J. was a wonderful person to have in the bureau, someone who very much added to the excellent chemistry and camaraderie of the team, with everyone pulling in the same direction, working hard but also having a sense of humor and perspective. He was quick to help others and make them better, and others very much wanted him to succeed. B.J was a serious journalist, but knew how to enjoy life. He made the Michigan AP a better place because of his journalism and because of the kind of person he was.
     
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    Paula Froke – The Detroit bureau in the 1990s was a pressure cooker of big, breaking stories challenging a group of journalists who excelled individually, but really stood out with their teamwork and camaraderie. The staff was like a family. B.J. was the sibling whose smile, calmness and grace was ever-present no matter what crisis was breaking out. He was an incredibly hard worker and a terrific reporter and editor. But it was his strength in the face of adversity – always with good humor – that made the biggest difference. That seems to be the hallmark of his entire life. He was one of those shining spirits who stays with you, all these years later. That smile! A true gem of a person.
     
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    Randi Goldberg Berris – I moved to Michigan sight unseen in 1997 for a job at the AP Detroit bureau. One of the first people I met was B.J. Reyes. We had a tightknit group of up-and-comers in that bureau, and we spent many hours together both working and playing. We spent many a night at Honest John’s or Soup Kitchen … Dee-Ann Durbin – I’m thinking of how we dragged B.J. with us to opening night of “The Titanic” and how we all cried together. The late 90s was a time well before cell phone photos became a thing, and I wish I had more memories captured on film. Maybe Burt Herman can dig up more from that fancy camera he’s holding? I am so saddened to hear of B.J.’s passing. He fought like hell through more cancer diagnoses than any one person should ever have to bear. I last saw B.J. when he came through town for the 2006 Super Bowl. He was such a special person, and I feel blessed to have known him.
     
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    Marty Steinberg – I’m so saddened about B.J.’s death on Saturday. I found out via Facebook posts of former colleagues. I was moved to tears by reading his sister Michelle’s post. Given his health problems, which afflicted him for 37 of his 50 years — countless surgeries since he was diagnosed with bone cancer in a leg, according to Michelle’s post — it’s not surprising that he’s gone. But his passing cuts across the heart and leaves a huge void. When I worked with him on the General Desk, he never once complained about his health or his pain. In fact, he joked about his limp. He was the epitome of grace, dignity and courage. His passing is a huge loss for all of us. I wish his family strength and inspiration in their memories of BJ.
     
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    Richard Borreca – retired Honolulu Star-Advertiser columnist and state Capitol bureau chief: I worked with B.J. while he was at the state Capitol. He was just what you wanted on a story, in-depth, breaking or new trend pieces. He was the complete journalist and a good friend. His courage was unmatched and he preferred that it be mostly unsaid.
     
    During one of his operations he had his old artificial knee removed and in typical BJ style he insisted on keeping the pieces to show off.
     
    B.J. worked for the now defunct Honolulu Star-Bulletin starting in March 2006.
     
    After working with the AP, B.J. joined the Honolulu Star-Bulletin and then the Honolulu Star-Advertiser, helping to cover the state Capitol.
     
    B.J. covered the 2008 GOP National convention in St. Paul, Minn. The next year BJ and fellow Star-Advertiser reporter Rosemarie Bernardo traveled to Washington, D.C., to cover the inauguration of Hawaii-born president Barack Obama.
     
    B.J.’s many ailments never stopped him from being the dependable and courageous newsman who ignored his own pain to complete the assignment.
     
    While covering the presidential inauguration, B.J., who bought a tux for the event, started to develop stomach pains, which he just put aside.
     
    On the 10-hour flight home from Washington, BJ’s “stomachache” turned out to be a seriously ruptured appendix requiring emergency surgery upon landing.
     
    Along the way B.J. also dealt with serious diabetes, a condition that BJ all but dismissed because he loved to bake and was top notch. Staff parties were not complete without custom B.J. creations. And he never spared the frosting!
     
    I have to believe that when journalism’s roll call is called, B.J. would be the one saying “Who me? Don’t bother me, I’m on deadline.”

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    Michael Giarrusso – AP global sports editor – I met B.J. Reyes when he was still a Penn State student and I was AP correspondent in State College. He became our best freelancer and then applied for the AP internship program. His application never mentioned his disability or cancer survival. His work stood on its own. We stayed in touch and ended up working together on the AP General Desk in New York. Over the years, I marveled as he battled cancer and its aftereffects with mental and physical toughness. He never complained, even when we walked long icy blocks between Manhattan dive bars, usually walking faster than any of us. He showed me around Oahu when I visited Hawaii and always seemed happy exactly where he was. I loved talking to him about sports, Penn State, Filipino food and journalism. He will be missed by those he touched around the world. Sumalangit nawa my friend. 

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    Tom Coyne – I was saddened to learn of the death of B.J. Reyes. I agree 100 percent with others who worked with B.J. who wrote about what a great co-worker and person he was. When I looked on the schedule and saw that I would be working with B.J. I knew that we were ready for any news that would be breaking that night. B.J. always was eager to jump into a news story. There were a lot of people like that in the Detroit bureau, but B.J. was special. He was never overwhelmed by the moment and always eager to do whatever was needed to get the job done and usually with a smile. He will be missed.

    Under the Big Top

    “Ladies and gentlemen, children of all ages, welcome to the greatest show on earth!  What you are going to see today is stupendous!  It’s astounding!  It’s historic!  The circus is about to begin!”

    Something like that is what you could expect to hear from a ringmaster at the circus, where various and sundry acts from jugglers and high-wire acrobats to trained elephants would perform for your entertainment.

    Here in Hawaii, “astounding” is something our Governor said about the way our tax collections have been rebounding.  And he’s not alone.  Our Council on Revenues, the panel tasked with projecting tax collections so our lawmakers can budget accordingly, is saying that our tax revenue will swell to about $8.3 billion in the fiscal year that ends on June 30, 2022, and jump to $8.6 billion in the fiscal year after that.  These are revenue levels we have never seen before.

    With this kind of money projected to come in the door, politicians of all stripes are staying up nights plotting and planning how to spend it.  Hopefully, they can perform in the legislative session beginning later this month with a flair that will have enough impact with their constituents so that they can confidently cruise to a re-election victory at the end of this year.

    Gov. Ige, however, seems to be an exception.  His pitch is to squirrel away a cool billion dollars (yes, billion with a “B”) into our state rainy day fund that has, by the way, shrunk to a mere $300 million.

    The public worker unions, understandably, are licking their chops and are quivering at the chance to pounce on some of that moola.  Their members have been forced to scrimp for the past several years while our economy was getting clobbered, by the national recession and then by COVID, and it’s now time to make things right.  They have a point.

    Some legislators cite maintenance backlogs that have been around for years and hope that additional funding can be directed to those departments and agencies with problems so they can finally be addressed.  They certainly have a point.

    Some legislators want to give their newfound wealth away to those less fortunate, and are eyeing such things as a hoist to the minimum wage, tax relief for working families such as making the state earned income tax credit refundable, and expansion of early education and affordable housing programs.  They have a point too.

    We’re hoping that amidst all of the hoopla, constructive change can be made to our agencies that allegedly are either sitting on tons of money, too lazy to reach for millions of available federal dollars, too lazy to do something about bad actors picking their (and our) pockets, or are mismanaging income-producing assets.

    We can look forward to all kinds of bill acrobatics, magical disappearing and appearing provisions, bills rising from the dead (yes, our supreme court made it harder to “gut and replace,” but we think some of that stuff will still be happening), and other unimaginable spectacles!

    But we are going to have to patiently wait in the bleachers while all of this is going on.  Our leaders in the House and Senate, professing to be worried about rising case counts due to the COVID-19 Omicron variant, have told us that the Hawaii State Capitol will remain closed to the public.  Only members, staff, and “a selected few,” we think, will be allowed in the Big Top – I mean, the big square building.  That’s how it has been for almost two years running.  In a way, it’s like entertainment where we’re allowed to see the performances but, for the most part, not participate in the action.

    Ladies and gentlemen, children of all ages, the circus is about to begin!

    Hawaii needs to avoid massive unemployment tax increase

    By Keli’i Akina

    For Hawaii employers, it’s deja vu all over again.

    Just like they were a year ago at this time, the businesses that provide jobs to the state’s civilian workforce are in danger of having their annual unemployment taxes skyrocket, which, in turn, could cripple Hawaii’s economy just when it is starting to get back on its feet.

    Last year, the tax was supposed to more than triple, until the Legislature finally stepped in to ease the pain. This year it could increase by more than double, from an average of $825 per employee to $1,768.

    The tax is legally required to increase because of all the demands on the unemployment system caused by the coronavirus lockdowns, which at one point saw more than 200,000 Hawaii employees out of work.

    Many of those employees are still out of work, still drawing unemployment wages and still depleting the state’s unemployment fund reserve, as the state’s emergency restrictions on businesses approach possibly their third year.

    When the reserve drops, Hawaii employers are expected to make up the difference.

    Last year, the Legislature passed a law that froze the unemployment tax rate for employers at the Schedule D rate — a slight increase from the pre-lockdowns rate, but far less than the catastrophic Schedule H hike that would have otherwise automatically gone into effect.

    Unfortunately, the bill was little more than a stop-gap, addressing only 2021 and 2022. Now, as 2023 approaches, Hawaii businesses are once again in a pickle.

    Since the lockdowns began, the state has paid out $6.5 billion in jobless claims, leaving the unemployment fund with only $123 million.

    In order to keep the fund up last year, the state funneled $800 million from the federal government into it, then cleared that debt with an equivalent amount of federal relief funds. Still, the fund is still far from the $1.3 billion reserve that is deemed adequate for a year’s unemployment claims.

    Thus, if the Legislature doesn’t intervene again, the state unemployment tax will soar up to Schedule H — the highest rate — for 2023. That’s an increase of 114%, more than enough to affect hiring decisions or prevent struggling businesses from surviving the lockdowns.

    Hawaii was one of the states hit hardest by the coronavirus lockdowns, especially given their effect on tourism. Yet, we’ve seen some positive trends, with the economy growing faster than some predicted, leading to higher state revenues. In fact, the state budget currently has a $3 billion surplus, at least a portion of which could be used to shore up the unemployment fund.

    In a recovering economy, the last thing you want to do is introduce a massive tax hike. Instead, you want to embrace policies that grow the economy. That’s because the state can gain far more in revenues from an economic bump than from trying to wring more tax dollars out of already-strapped Hawaii businesses.

    The Aloha State’s private sector has had to overcome so much in the past two years. Many businesses have had to close their doors forever. Others are barely holding on, hoping that the worst is behind us.

    There are many ways that the Legislature can address this problem. One could be to introduce another rate freeze, to give officials time to reexamine the law and its automatic tax increases.

    What we should not do is levy yet another heavy burden on Hawaii’s businesses and disrupt our state’s economic recovery.
    ____________

    Keli’i Akina is president and CEO of the Grassroot Institute of Hawaii.

    Coffman shines a light on the aftermath of December 7, 1942 for Hawaii’s AJA community

    I can’t think of another writer who has covered contemporary Hawai`i history as thoroughly and prolifically as Kailua-based, Tom Coffman. Don’t let the “prolific” part mislead you. Tom is every bit as thoughtful and assiduous in his research in every project he takes on.

    Being in front of his keyboard is part of his makeup and he wouldn’t have it any other way.

    His most recent book, INCLUSION: How Hawai`i Protected Japanese Americans from Mass Internment, Transformed Itself, and Changed America focuses on the post December 7, 1942 period.

    Tom Coffman, a political journalist and leading historian of modern Hawaii

    Following the Pearl Harbor attack, the United States government interned the 120,000 people of Japanese ancestry evicted from scattered settlements throughout the West Coast. Why was a much larger number concentrated in the Hawaiian Islands war zone not interned?

    As the author explains, at the root of the story is an inclusive community that worked from the ground up to protect an embattled segment of its population. Where the onset of World War II surprised the American public, war with Japan arrived in Hawaii in slow motion. Responding to numerous signs of impending conflict, a Council for Interracial Unity mapped two goals:  Minimize internment and maximize inclusion in the war effort. The Council’s aspirational work was expressed in a widely-repeated saying: How we get along during the war will determine how we get along when the war is over. The Army Command of Hawai`i, reassured by first-hand acquaintances, came to believe Trust breeds trust.

    Where most histories have shielded President Franklin D. Roosevelt from direct responsibility for the U.S. mainland internment, his relentless demands for a mass removal from Hawai`i—ultimately thwarted—reveal him as author and actor. In making sense of the disparity between Island and mainland, Inclusion unravels the deep history of the U.S. “sabotage psychosis,” dissecting why many continental Americans still believe Japan succeeded at Pearl Harbor because of the unseen hand of Japanese saboteurs. Contrary to the explanation of hysteria as the cause of the internment, Inclusion documents how a high-level plan of mass removal actually was pitched to the U.S. Army command in Hawaii well before December 7, only to be rejected.

    A Japanese American shop, Asahi Dye Works, closing. The notice on the front is a reference to Owens Valley being the first and one of the largest Japanese American detention centers

    Inclusivity developed in strategic steps, from prewar community-building to the shock of threatened invasion, to demoralization, to morale-building, and ultimately to the performance of Japanese American troops in the U.S. military. The last step was formation of the State of Hawaii.

    The inclusivity of Hawai`i did not just happen. It has history. So far as this history resulted from conscious intention, it poses the issue of what sort of conscious intention would be required to create a more inclusive America today.

    What Scholars Are Saying

    Inclusion is of singular worldwide public and academic importance. It lifts up Hawai‘i’s interethnic history to show how small groups with a common goal and working cooperatively can result in wondrous social change.” —Tetsuden Kashima, author of Judgment without Trial: Japanese American Imprisonment during World War II

    “Brilliant and meticulous, Tom Coffman reveals the people and forces that spared territorial Hawai‘i’s Japanese populace from mass removal after Pearl Harbor…the heroes of this  story were inspired by an idealism and aloha that the world can learn from today.”— Mark Matsunaga, journalist and World War II historian

    A child is “Tagged for evacuation”, Salinas, California, May 1942. Photo by Russell Lee.

    “Tom Coffman has broken new ground on the tragic history of the Japanese American internment. Now we know the Hawai‘i chapter is a crucial part of the story—and Coffman tells it with authority and verve. —Kai Bird, Leon Levy Center for Biography, CUNY Graduate Center; author of John J. McCloy & the Making of the American Establishment

    “Tom Coffman has produced a definitive account of Americans of Japanese Ancestry in Hawai‘i during World War II. Packed with fascinating details, Tom Coffman’s work enlarges our understanding of this key era in American history.”—Greg Robinson, Université du Québec à Montréal, author of By Order of the President and A Tragedy of Democracy

    “It is unlikely that a work of this breadth and magnitude will come around again anytime soon, especially as many of the historical actors interviewed by the author have passed away. I know of no account that attempts to treat as many separate threads of historiography in a single account.”— Corey M. Johnson, Stanford University and University of Hawai‘i at Hilo

    Tom Coffman is a political reporter and author of six books, including Nation Within and Catch A Wave. First Battle and Ninoy Aquino are among his widely broadcast documentaries. He is a three-time recipient of the Hawai‘i Book Publishers Association’s award for nonfiction writing, and for his cumulative work he received the Hawai‘i Award for Literature.

    University of Hawai‘i Press; 359 pages, publication date October 2021; paperback $24.95; hardcover $80

    Life in Portugal – Buying my Portuguese Dream House (Part 2)

    Editor’s Note:  The dream of buying an old house in the countryside for cheap and then remodeling it captured our man in Europe, Kurt Stewart, in 2020. His goal was to establish a B&B in the heart of Portugal. This is Part 2 of his two-part story about what happened when he realized that dream.

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    Part 2Running out of fantasy

    “It has great potential” – that’s what Herzog must have thought too.

    The story behind the making of Fitzcarraldo is legendary. Documentary filmmaker Les Blank was on set with Herzog to capture the sheer madness of attempting a film of this order. There are scenes in the documentary that show Herzog on the verge of losing his mind. At one point, an exasperated Herzog declares, “I’m running out of fantasy. I don’t know what else can happen now”.

    And it’s no wonder. The production was beset by a string of other-worldly catastrophes: attacks from hostile Indians, diseases, plane crashes, venomous snake bites, violent tropical rainstorms, mental breakdowns of cast and crew and a two-year stoppage when they were forced to find another location some 1,500 miles away.

    The actor Jason Robards was originally cast as Fitzgerald but had to quit the production when he was stricken with amoebic dysentery. Mick Jagger was also cast in the film but dropped out too. He left for commitments for a new album and concert tour after nearly 40 % of the film had been shot. The film had to be scrapped and started from scratch again with new actors to fill the roles.

    Herzog’s investors in Germany were ready to pull the plug on the film. When they asked him if he had the strength and will to finish the film, Herzog responded, “How can you ask me this question? If I abandoned this project, I would be a man without dreams”.

    Imagine this dream then: you are in a jungle, but it’s not the Amazon rainforest – it’s your new house. You arrive, like Herzog, with the idea of making it your masterpiece. It has the raw materials to be something special – an old stone house in the countryside, the way you always dreamed.

    It’s almost romantic – it would be, if only the nagging question of limited financial resources (money?) wasn’t hiding in the underbrush like a python ready to swallow you whole.

    Contractors on the job

    That day when you signed the contract, your realtor pulled you aside and said, “There will be some remodeling to do but it shouldn’t cost you more than __________”.

    You’ve already forgotten what that dollar amount was. Trauma has erased it from your memory. It was low, that number. Much, much lower than what you later discovered would be the true cost of renovating this very old, very stone house.

     Slowly, surprises crop up that you hadn’t expected. At all.

    Like a septic tank on the brink of exploding. The realtor forgot to mention that. It turns out that the tank itself is way too small for a house of this size anyway. So now you have to pay a visit to the local town hall. Eventually they’ll send an inspector over to determine how they can connect your house to the local sewage system. Costs to be determined.  

    Stairway to heaven?

     Like the windows. You knew they were old, but that they ALL had to be replaced? Double-glazing those more than 20 windows? Your heart stops beating. And throw in all the doors for that matter. The wind and rain are pouring through them now. Costs: about the same amount as what the realtor had estimated for the renovation of the entire house!

    Like… you can imagine. The expenses are piling up. As for finding contractors, good luck. Their services are in high demand and they are hopping between a half dozen different job sites. They are so over-committed that they frequently leave you in the middle of the job to complete another one somewhere else.

    It has happened on four different occasions where the work is suspended for months at a time. The house is left looking like a construction site halted for the holidays. They couldn’t give a definitive date for when they’d be back: maybe a month, maybe three or four – who knew?

    And now throw Covid into the mix, and you have a recipe for a steamship-sized disaster.

    The “adega” before renovation

    Picture large holes in the walls waiting to be filled, tubing and wiring hanging from the rafters, blocks of granite in piles of rubble, half installed bathrooms, floorboards with large gaps giving view to the basement, and kitchens left unfitted.

    The surprises keep coming. All the electrical wiring has to be pulled out and re-installed. The plumbing is more of the same. The costs are piling up, but this is your dream home. You are far too deep in the jungle now to think of abandoning the project.

    Like Herzog going mad in the Amazon, you too are losing it. The only option is to keep moving forward.

    The words “It has great potential” come floating back to you every day.

    “Potential! Potential! Potential!” – the potential to rain financial ruin down upon you, your children and their children’s children.

    The “adega” after renovation

    But this is much bigger than a simple story about caveat emptor, of cost overruns, of a money pit or of just plain ignorance. It’s not even a cautionary tale. Yes, it’s costing us more than we bargained for. And yes, there are headaches galore trying to put it all together.

    But if you asked me if I’ve ever wanted to abandon it all, if I in fact have the will to finish it, I’d say “How can you ask me this question? If I abandoned this project, I would be a man without dreams”. Yeah, it boils down to a simple, sleep-depriving dream.

     The dream is to make a place that we can share with others who are looking for something different in the way of rural tourism, what is known in Portugal as “Alojamento Local”. So when all is finally completed, we will have a separate studio in what used to be the “adega” (wine cellar), where we can receive guests. We are listed on AirBnB and the entire house will eventually be open for vacation rentals.

    Interior, dining area

    This is part of a bigger project involving European funding to help create employment possibilities in and around the center of Portugal. Our business offers a combination of rural and urban stays in three different locations in Portugal: Porto, in the city center, Tras-os-Montes, in the rural north-east of the country, and now here, in the center near the city of Viseu.

    At the end of Fitzcarraldo, Fitzgerald and his crew have managed to salvage some of the tattered steamship after its trip down the rapids. And improbably, Enrico Caruso does come to the Amazon. In the conclusion of the film, we see him singing on the Molly Aida in a makeshift performance of Bellini’s I Puritani, with full symphony backing. Fitzgerald watches from the deck of the ship, smoking a cigar in triumph.

    What is the lesson in all of this? There is none – buy a very old stone house for a euro or a million euros, or don’t. Take a chance on flubbing it all, making all the classic newbie mistakes. Whatever happens, have faith that Caruso will show up, eventually.

    And even if you happen to run out of money, don’t run out of fantasy.

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    Kurt Stewart is a writer, educator and entrepreneur who has been telling stories about the places he has lived and worked for more than 35 years.  

    After leaving his native San Francisco in 1981, he began his writing career in Paris where he wrote feature articles for Paris Passion magazine and USA Today. He later moved to Portugal where he taught in the School of Film and Television at the Universidade Católica Portuguesa in Porto. He spent several years in Malaysia working with the Ministry of Education training teachers in the public schools. While there, he wrote travel stories for the Hawaii Reporter. His latest venture involves country living in the heart of Portugal’s still undiscovered central region.

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    TANF Hoarding

    One of the ways our government provides a safety net for those less fortunate is through a program called Temporary Assistance for Needy Families, or TANF.  TANF was enacted in 1996 as a program that replaced Aid to Families with Dependent Children (AFDC), which used to provide cash assistance to families with children experiencing poverty.  Under TANF, the federal government provides a block grant to the states, which then use these funds to run their own programs.  To receive federal funds, states must also spend some of their own dollars on those programs and face severe fiscal penalties if they fail to do so.  This state-spending requirement, known as the “maintenance of effort” (MOE) requirement, replaced the state match that AFDC required.

    States can use federal TANF and state MOE dollars to meet any of the four goals set out in the 1996 law: (1) assisting needy families so children can be cared for in their own homes or the homes of relatives; (2) reducing the dependency of needy parents by promoting job preparation, work, and marriage; (3) preventing pregnancies among unmarried persons; and (4) encouraging the formation and maintenance of two-parent families.

    These goals are broad, giving states lots of freedom to use these federal dollars in a way that they think brings about positive outcomes.

    So what have we done with the federal TANF money?

    We’ve let it pile up unused.

    ProPublica, a nonprofit newsroom that investigates abuses of power, recently published an unflattering article that calls out several states for doing nothing at all with large sums of money.  It reports:  “According to recently released federal data, states are sitting on $5.2 billion in unspent funds from the federal Temporary Assistance for Needy Families program, or TANF. Nearly $700 million was added to the total during the 2019 and 2020 fiscal years, with Hawaii, Tennessee and Maine hoarding the most cash per person living at or below the federal poverty line.”

    Source:  U.S. Department of Health and Human Services

    As this graph shows, the “unobligated balance” of the federal block grants, meaning federally authorized money that we haven’t spent, has been rising steadily over the last five fiscal years.  In federal fiscal year 2020 (the year starting Oct. 1, 2019, and ending Sept. 30, 2020), our unobligated balance was $364 million, equivalent to almost $3,000 per person living in poverty.

    Certainly, we have been using part of the TANF money.  But we have been spending quite a bit of our own funds:

    According to ProPublica, a Hawaii state spokesperson said that our state government plans to use its surplus to extend employment services like job coaching and placement for noncustodial parents who have children receiving TANF and to provide diaper assistance to families that are eligible for the program.  The state is also considering increasing benefits and offering monthly housing assistance.

    The question, however, is why has it taken so long for our bureaucrats to come up with ways to put that money to good use?  It certainly won’t help alleviate poverty if it’s sitting in some bank somewhere.

    Legislators and other interested people:  Here’s your chance.  The Legislature is now grilling each of the Executive Branch departments for answers on how they plan to spend your hard-earned dollars.  It’s a great time to ask the Department of Human Services what the heck is going on with their steadily growing wad of unused TANF cash.

    Let’s make it easier for Hawaii residents to use cryptocurrency

    By Keli’i Akina

    Will Hawaii be able to benefit from the cryptocurrency boom? Or will excessive regulation continue to get in the way? It all depends on what happens in the upcoming legislative session.

    Sometimes called digital currency, cryptocurrency continues to grow in value as it becomes more widely accepted and more investors buy into the market.

    Bitcoin is probably the most well-known cryptocurrency, but there are thousands of others, including Etherium, Dogecoin and Monero. The market overall is valued at $2.2 trillion, and every day seems to bring news about a company, country, state or municipality that is accepting or investing in cryptocurrency.

    Unfortunately, Hawaii residents have been largely left out of the cryptocurrency market, thanks to a regulation that makes it nearly impossible for them to operate here.

    Cryptocurrency companies are subject to Hawaii’s money-transmitter law, which requires that they have cash reserves equal to the value of the virtual assets they hold. Thus, a company that has $100 million in Bitcoin and Ethereum also needs to have an additional $100 million in cash.

    It is easy to see how this could be too great a financial burden. That’s why the top two cryptocurrency exchanges — Coinbase and Binance — do not operate in Hawaii. Nor do other well-established companies like Robin Hood Crypto or PayPal’s Cryptocurrency Hub.

    In 2019, the state launched a “Digital Currency Innovation Lab,” essentially a regulatory “sandbox” that permits certain digital currency companies to operate in Hawaii without having to meet the cash-reserve requirement under the money-transmitter law.

    Unfortunately, the sandbox expires at the end of 2022. Without action from the Legislature to reform or remove the cash-reserve regulation, Hawaii’s involvement in the sphere of cryptocurrency could end before it even has the opportunity to grow.

    I spoke about this quandary with my guest on this week’s “Hawaii Together” episode, Alexandra Gaiser, who is director of regulatory affairs for River Financial, one of the 15 companies participating in the state’s innovation lab.

    Gaiser helped demystify the concept of cryptocurrency for me, calling it, “the latest evolution … of a practice as old as man, and that is bartering — exchanging one thing for another and using some symbolic token to represent what you’re exchanging.”

    While the concept of digital currency may seem foreign and complex, Gaiser pointed out that we are already very comfortable with different forms of digital transactions.

    “Even now,” she said, “I pay for some things with credit card points. I book certain flights with airline miles. Anytime I give or receive a gift card, it’s denominated in dollars, but it’s not quite dollars. It’s a little bit more [like] store credit. We all are actually pretty sophisticated consumers of different types of currency, not all of which are related to the U.S. government.”

    Gaiser said there is a place for government regulation of cryptocurrency, such as in the prevention of fraud, but also that it is possible to strike a balance that does not put an unworkable burden on cryptocurrency companies.

    She said it would be “tragic” for Hawaii’s economic future if the Legislature doesn’t act quickly and continues to overregulate cryptocurrency companies in the state.

    “To be in 2022, in the world of Bitcoin and cryptocurrency, is like being in 1996, in the world of the internet,” she said. “There’s so much that we haven’t done yet, we haven’t built yet. I would hate to see Hawaii miss out on the innovation to really improve life and to be creative, to be innovative, to make new products, [and] then to also miss out on the wealth that comes with that.”

    Since the state’s cryptocurrency sandbox took effect in March 2019, 61,000 Hawaii customers have been able to participate in the cryptocurrency market. In that limited window, they made cryptocurrency transactions worth $611 million. Just imagine what it could mean to our economy if Hawaii residents had the freedom to participate fully in the worldwide digital currency market.

    I hope our state policymakers can see this potential and remove the barriers to cryptocurrency that are holding us back.
    _________

    Keli’i Akina is president and CEO of the Grassroot Institute of Hawaii.

    Considering a Carbon Tax with Rebates

    The Hawaii Tax Review Commission, under our state constitution, convenes once every five years or so to examine and report on our state tax system. It recently published its report addressed to the Legislature

    Its top recommendation is that the state enact a carbon tax, paid by suppliers of  petroleum  products or other fossil fuels. They recommended that the tax be imposed between $56 and $79 per metric ton of CO2 equivalent produced. (For gasoline, this translates to 39 cents to 54 cents per gallon.) And the Commission recommended it purely to disincentivize fossil fuel use to protect the planet, and not for the State to raise revenue.  The Commission estimated that the tax would raise between $450 million and $500 million a year and recommended that 80% of the tax be rebated to taxpayers.

    To me, that sounds a little like asking the wolf to guard the henhouse and, after the wolf has stuffed a few chickens in its mouth, to politely ask the wolf to give most of the chickens back.

    Why such doubt?  Just last year, our legislature enacted a huge change of heart toward revenue sharing. Our transient accommodations tax, the hotel room tax, had been shared with the counties for decades.  But under HB 862 (2021), the State took it all.  And this was after the Governor had vetoed the bill so providing.  The Governor said, among other things, that the State’s revenue picture didn’t look as bleak as previously forecasted (because we were going to get lots of money in aid from the federal government, for example) and we didn’t have the same pressure to shore up State revenues.  (Indeed, the rebound in this year’s tax collections is “astounding,” according to the Governor.)  The legislature nevertheless overrode the Governor’s veto. 

    The Commission recommended that the State cut rebate checks either to all individuals or to all but the top 20% earners. I can easily see the Legislature turning this recommendation on its head, keeping the 80% for “immediate revenue needs” (Civil Beat quoted House Finance Chair Sylvia Luke as saying, “There’s too many needs out there and too many things we need to take care of that need immediate attention”), while perhaps rebating a smidgen of the money by either juicing up existing credits for lower income taxpayers like the Earned Income Tax Credit or the Food/Excise Tax Credit, or by enacting a new refundable credit.  In 2020, for example, the Legislature was considering a carbon tax.  SB 3150 SD1 (2020) proposed to impose tax at between $40 and $80 per metric ton of CO2 equivalent and allow a companion refundable credit of between $100 and $500 for a married couple, phasing out entirely at gross annual household income of $75,000.  (Subsequent drafts of the legislation changed the numbers in the bill to blank amounts, leaving taxpayers to guess what our lawmakers were thinking.)  The Commission’s recommended cashback per household, in contrast, is closer to $1,000 assuming the top 20% earners don’t get to participate in it.

    And then, even if the carbon tax is enacted as recommended, it’s going to fall particularly hard on folks who live in suburban or rural areas and need to endure long commutes to everyday work.  The Department of Transportation, by the way, is independently studying (and hyping) a road usage charge that would make life even more costly for those commuters by replacing the gasoline tax with a tax based on miles driven. (Or at least they say the gasoline tax will be replaced, but the Legislature may well have other ideas on that point too.)

    This, of course, is not the only recommendation the Tax Review Commission came up with. We will be discussing some of the other recommendations in coming weeks. 

    Let’s resolve to put the state on a diet

    By Keli’i Akina

    The start of a new year is traditionally a time for resolutions and self-improvement. So, in that spirit of personal growth, it’s time we engage in some brutal candor about a problem in our state that’s difficult to ignore, Yes, Hawaii’s state budget needs to go on a diet.

    I admit, the past two years have been tough for all of us. Who hasn’t put on a few pounds since March 2020, when most of us were ordered to hang around the house more  — where our refrigerators are located — in an effort to stop the spread of COVID-19?

    But Hawaii’s state budget had been packing on the pounds long before the coronavirus lockdowns started; its current ballooning figure is the result of years of indulgence and bad habits. 

    If anything, 2021 was a wake-up call. Some state policymakers actually started to consider eating a few fresh vegetables, which in this case means spending cuts. But then state tax revenues came in higher than expected, the federal bailout added more money to the coffers, and most of them went right back to snacking on high-calorie tax dollars, avoiding balanced budgeting as if it were an actual treadmill.

    In releasing his executive supplemental budget for fiscal 2023, Gov. David Ige announced that Hawaii’s rebounding economy has resulted in “astounding” tax revenues. As a result, I am happy to say, he says he is not planning any tax increases. 

    But the Legislature is a wild card, and I am pretty sure some of its members have different plans. The truth is, however, that the best way to increase state revenues is not through tax hikes, but through policies that grow the economy. The state can reap far more through economic growth than it can through an increase in taxes, as the first five months of fiscal 2023 just proved. 

    During the 2021 legislative session, too many of our lawmakers refused to see this and simply went ahead and increased our taxes, further burdening Hawaii’s businesses and taxpayers.

    The panic over the possible loss in revenues caused by the lockdowns was so severe that the Legislature took away the county shares of the state transient accommodations tax, leaving the counties to levy their own TATs, which all have done.

    Combined with the state’s general excise tax of 4%, plus the 0.5% county GET surcharges on Kauai, Oahu and Hawaii island, which tourists also pay, the Aloha State now has the highest tourist taxes in the nation, topping out at 17.75% — not exactly ideal to help Hawaii’s ailing tourism industry recover.

    But back to the bloated budget: At present, the state is looking at a budget windfall, thanks to higher tax revenues and an infusion of federal aid funds. But rather than revert to its usual bad habits, the state should resolve for 2022 to slim down and achieve good health. As any fitness guru will tell you, the first step toward improvement is to stop the bad habits. 

    No more saddling future generations with high debt. Don’t postpone paying down unfunded liabilities. Don’t borrow more for new projects. Post a reminder on the refrigerator to not raise taxes on Hawaii residents or businesses. Even better, look for ways to cut taxes and lower the cost of living, perhaps by working more with the private sector to deliver certain public services. As I said, the best way to produce tax revenues is through economic growth. 

    Sure, it won’t be easy; significant self-improvement is usually a major challenge. But we’re not looking to put the state budget on a crash diet. 

    We want state policymakers to embrace a lifestyle change for 2022, one that will lead to a healthier, happier and more prosperous Hawaii for generations to come.
    ____________

    Keli’i Akina is president and CEO of the Grassroot Institute of Hawaii. This commentary was Akina’s weekly “President’s Corner” column for Jan. 1, 2022. If you would like to have his columns emailed to you on a regular basis, please call 808-864-1776 or email info@grassrootinstitute.org.

    Insuring your collection? You’ll need the Bluebook of Gun Values

    Editor’s Note: This is the second article in a series I’ve entitled “At Home and on the Range”. These pieces entail products and services that I think will be of particular interest to On Target readers in the coming year.

    *************************

    Everyone is familiar with that old maxim “there’s nothing certain except death and taxes”. Well, I might add insurance premiums to the list.

    If you’re like a lot of folks who have a “collection” of firearms, the value can run into a considerable sum. Being the thoughtful person that you are, you’re going to have it insured.

    How exactly does one determine the value for insurance purposes or if you’re going to trade or sell an item?

    The answer is the Bluebook of Gun Values which is available as an old fashioned “analogue” book or, online.

    Why do I think it’s worthwhile?  

    First off, it’s quite comprehensive, even encyclopedic. The Blue Book of Gun Values includes around 1,900 manufacturers and approximately 30,000 gun model descriptions which comes to about 180,000 values.

    The newest edition, published last year, includes includes all the new 2021 makes and models, along with pricing updates on many current and discontinued models.

    How does it work?

    Essentially you look up whatever model you have and the book provides a table with ascribed values according to condition or grade, which ranges from New in Box (NIB) to 50%. Your job is to ascertain what condition the firearm is really in.

    How do you do this? After all you’re not a museum curator.  

    The Blue Book of Gun Values offers both an encyclopedic data base and grading criteria to value your collection

    The Blue Book of Gun Values provides a very complete photo database that includes every manner of rifle and handgun with comprehensive descriptions germane to the model, so that you can assess the value. For example, is your Smith & Wesson revolver pinned? Does it have a stainless or blued finish? Does yourModel 5906 Stainless (see below) have a tritium sight? If so, add another $115 to the value. All of these factors, including the grade, will impact the value.

    There’s even a a serialization index that enables finding serial number information easy.

    In essence, The Blue Book has the resources to allow you to go very deep into this subject and come up with an accurate valuation.

    In addition to the photo database there are a number of detail-packed essays ranging from grading criteria to serialization that add great value to this book.

    Of course, like anything, this publication has some limitations.

    It’s not going go have every gun every manufactured, but it will cover some obscure stuff. For example, I acquired a Baby Nambu, a rare Japanese military pistol. To my surprise it was listed in the book.

    There was an instance where the Blue Book did not cover the features of a particular Smith revolver that I owned. However, I emailed the publisher and they were able to set me straight.

    Of course, there’s always the odd apocalyptic event that may impact the value of firearms.

    It’s hard to value guns in the midst of a gun buying craze but the Blue Book of Gun Values offers a foundation.

    If you’re in the midst of a firearms buying craze, triggered by a pandemic or politics (or both), the prices listed in the Blue Book of Gun Values may not reflect the up-to-the-minute trends in the marketplace. If you want to sell your Russian AK during a gun buying craze, the book is not going to provide the latest price. However, it’s not really meant to do that. (Better to check prices on Gunbroker in that instance).

    To the publisher’s credit, Zachary R. Fjestad put together an excellent essay, “A year in review, what happened?”, which did a good job of surveying the climate, racked by divisive politics and plague, into perspective.

    In fairness, “buying craze” scenarios usually don’t impact valuing collections for insurance purposes.

    The only nitpicking comment I have is that the website could be better structured. The content is there but it’s not always obvious where it’s found.

    That said, this doesn’t impact the inherent quality of the resource.

    If you’re planning to purchase or sell a firearm or, appraise the value of your collection, the Blue Book of Gun Values is a must have.