Five-Point Plan Strengthens Economy
To address economic challenges in Hawai`i the Administration remains focused on its five-point plan to stimulate the economy and encourage investment.
The plan's components include:
• Increased tourism outreach and marketing;
• Investing in improvements to state infrastructure and facilities;
• Lowering business fees and providing tax relief;
• Attracting private investment, especially in energy; and
• Maximizing federal dollars and partnerships.
"We are in full-action mode," said Governor Lingle. "We will not stand by and simply wait for things to get better."
"In addition to pursuing these action items with great intensity, we are also cutting spending to ensure that we have a firm handle on our expenses and are using taxpayer dollars wisely. Every day, we are taking steps to offset our potential shortfall in revenue."
Based on lower tax revenue projections issued by the Council on Revenues, the state is facing a potential $1.1 billion gap between revenue and expenditures over the next three years if government spending continues unchanged.
Measures the Administration has been taking to narrow this gap include a four percent restriction on discretionary spending for all government departments that was implemented starting July 1, 2008. The Administration has also implemented a hiring freeze except for critical health and safety positions, restricted out-of-state travel, and curtailed the purchase of new equipment and vehicles.
"Fiscally, by law, we have to have a balanced budget and we will have a balanced budget when it is submitted in mid-December," said Governor Lingle.
Proposed Kahului Harbor improvements.
Hawai`i's Economy Is Fundamentally Strong
While Hawai`i's is facing a reduction in the rate of growth, the state continues to maintain a healthy cash position.
In recognition of the Lingle-Aiona Administration's history of fiscal accountability and our state's strong constitutional-based fiscal controls, national bond rating agencies Moody's, Fitch and Standard and Poor's recently retained Hawai`i's high bond ratings and projected a "stable" outlook for our economy.
"During turbulent times, we have successfully maintained our high bond ratings," said Governor Lingle. "This is a testament to the strength of our economic foundation and also supports our proactive efforts to stimulate our economy, including moving forward with bond-funded infrastructure improvements to our airports, harbors, highways, state parks, the University and public schools."
Long-Term Strategies to Transform Hawai`i's Economy
At the same time it is focused on immediate steps to bolster Hawai`i's current economic conditions, the Lingle-Aiona Administration continues to pursue long-term strategies aimed at transforming our economy. These include the Hawai`i Innovation Initiative, which is focused on developing our workforce with skills they need to succeed in the 21st-century global economy.
The state is also working with the U.S. Department of Energy in an unprecedented partnership called the Hawai`i Clean Energy Initiative. The partnership seeks to supply 70 percent of Hawai`i's energy needs from clean or renewable sources by 2030.
Maximizing our use of renewable energy will assist Hawai`i's economy by attracting outside investment, decreasing energy prices for consumers and reducing the more than $5 billion we spend annually to import oil from foreign governments.
"I firmly believe that as a state we are on the right track in pursuing our short- and long-term goals," said Governor Lingle. "I am also confident that the resiliency and innovation of our people will pull us through the current economic situation and result in a stronger, economically healthier state in the years ahead."
