The 2011 state Land and Natural Resources calendar on Gov. Neil Abercrombie’s desk is something of a talisman.
Featuring pictures of some of the old Depression-era projects done in Hawaii under the guidance of Franklin Roosevelt’s Works Project Administration, the calendar points to the 5,500 people employed in the Territory, working on Farrington High School and Andrews Amphitheater and other government jobs.
Brandishing it as proof of what can be done when government primes the pump for local construction activity, Abercrombie launches into his pitch for $1.4 billion in state construction projects.
It is the keystone to his economic recovery plan. It makes a lot of sense: Economists dote on rises in construction activity because so much of the money spent stays in Hawaii, bouncing from paychecks to plate lunches to new orders — all resulting in more jobs.
The only problem is there really is nothing new about this "New Day" plan; spending money for construction is what the state does.
In fact, former Gov. Linda Lingle back in 2008 announced an even bigger construction stimulus plan, $1.8 billion.
Former state comptroller Russ Saito, in response to my questions about state construction spending, said that Hawaii can push the jobs out the door.
"The actual expenditures show that the state not only can but has spent nearly a billion on CIP in any given year.
"With some streamlining of processes, the capability, in my mind is beyond a billion a year," Saito said.
The projects run across the various state agencies and departments, with the departments of education and transportation and University of Hawaii, along with Hawaiian Homes Lands and accounting and general services directing most of the work projects.
Saito designed a program, dubbed the CIP strike force, to hurry along the approval and awarding of construction projects, when Lingle was governor. In just the category of "speeded up" projects, the Lingle administration had $1.9 billion in the pipeline and had $874 million in projects actually under way with shovels in the ground during her last term.
Actual construction projects awarded to actual contractors is a good way to see what’s moving. The DAGS public works website shows that $41.6 million was awarded in calendar year 2009, $69.4 million was awarded in 2010, and so far $5.2 million has been awarded this year under Abercrombie.
In his mid-year report last week, Abercrombie said he has released $425 million in CIP since taking office. Of course, releasing the money is a long way away from construction companies writing paychecks to people for a new state project.
I asked former Gov. Ben Cayetano if it was even possible to spend $1.4 billion in one year. He said it can’t be done in a single year because the project has to be planned; it has to go out to bid; if there are federal matching funds you have to wait for those funds to become available; plus, it would be difficult to find enough people to even do that much in a year.
Another Cayetano associate with tongue firmly in cheek told me, "Shovel-ready projects are really incongruent terms for state and county governments. They just can’t move at that speed. They may have shovels, but they are used for other purposes."
Cayetano did say that government spending for construction is still a powerful way to help the economy.
"Building new schools, renovating state buildings are the kinds of projects that don’t require extended planning and provide work for carpenters, masons, electricians and roofers," Cayetano said in response to my question.
It doesn’t have to be a "New Day" for the small businesses and the carpenters and electricians hoping for a job; all it has to be is a work day.
