Another Harris administration proposal would transfer services offered by both levels of government to the county.

Harris cited as examples certain state parks and sections of roadways now maintained by the state and the county in a patchwork fashion.

"It makes more sense than two sets of crews fixing two sets of potholes a few yards away," Harris told lawmakers today.

Additionally, under the Harris plan, the county would no longer rely on state subsidies for county services such as emergency medical services, traffic signal maintenance, the Office on Aging, prosecutorial assistance, the Victim-Witness program and job training programs.

"We're looking at it as a new partnership arrangement to realign our services between the county and the state," said County Budget Director Malcolm Tom.

Other county mayors, however, asked legislators to preserve the counties' traditional share of the transient accommodations tax.

Big Island Mayor Stephen Yamashiro said the county needs the money to offset an expected $10.8 million increase in the coming year's budget, bringing it to $179.8 million.

A large part of the increase is due to employee wage increases which, he said, "to a large extent are outside our control."

Hawaii County receives $18.4 million, or 10.2 percent, of all county revenues from the tax.

Maui Mayor Linda Crockett Lingle said transient accommodation tax revenues are "critical to the quality of life in Maui County" and services, such as transportation for the elderly and disabled, depend on it.

Last year, Maui County received $20 million in room tax revenue representing 12 percent of the county operating budget.

In supporting a new financial arrangement, Harris said: "Our residents will benefit from increased efficiency, lower operating costs and a smaller and more responsive government. xxx No one would organize a business the way we've organized the city and the state. We're at a point now (where) we can't afford the inefficiencies."

Harris told members of the House Finance Committee the shift would be "revenue neutral," with no added cost to the state.

The city would receive about .67 percent of the 4 percent general excise levy. Prior to 1973, the counties received a share of the state general excise tax.

Harris told lawmakers an ongoing erosion of the city's property tax base has "severely tested the city's fiscal health." He said assessments have declined about $5.6 billion since fiscal year 1995.

Echoing the economic realities reverberating around Honolulu Hale, Councilman Mufi Hannemann said he hopes the state won't go after the counties in this stagnant economy.

"Every year it's the same thing," he said. "We go in hat in hand and we never come out with what we want. If anything, we need to ensure that we don't lose what we have."

Several Finance Committee members expressed initial enthusiasm for Harris' plan.

"If this idea is revenue neutral, it sounds like a pretty good idea," said Rep. Barbara Marumoto (R, Waialae Iki-Kahala).