Much of what President Barack Obama proposed in his State of the Union address on Tuesday is not likely to win congressional approval because of Republican opposition. However, some important moves, such as an increased federal minimum wage and expansion of preschool education, coincide with Hawaii proposals and should be given due consideration at both levels. Still, there was a disappointing lack of detail from Obama on how new programs would be funded, even as he barely addressed the looming fiscal threat of sequestration. Hawaii’s congressional delegation must join with the White House to carve out a balanced approach to that immediate deficit problem first, to prevent harsh across-the-board slashes to the military and other economies crucial to the islands.
The president warned Congress that "sudden, harsh, arbitrary cuts" known as "the sequester" — automatic, across-the-board spending cuts in the face of annual budget deficits — "are a really bad idea." Among other damage, he said the cuts "would jeopardize our military readiness" and reduce Medicare and Social Security benefits.
U.S. Sen. Mazie Hirono warned of the consequences in Hawaii on the eve of Obama’s speech, saying that the sequestration cuts could cost Hawaii 11,000 jobs, force 18,000 defense civilians to take furlough days and cut into defense contracts that average $2.3 billion a year. She added that 2,200 health care professionals in Hawaii could lose their jobs, among other consequences.
Hawaii is not alone in those areas, and will need Congress to respond affirmatively to Obama.
On upping the minimum wage: An increase seems to be needed to bring families out of poverty, but the question is how much in this still-recovering economy. Pointing out that millions of American workers who are paid the present minimum wage of $7.25 an hour earn $14,500 a year, the president called for an increase to $9, a half-dollar less that what he proposed during last year’s campaign.
In his State of the State address last month, Gov. Neil Abercrombie called for an increase in Hawaii’s hourly minimum to $8.75 from the state’s threshold of $7.25. In apparent response to Obama’s speech to Congress, Hawaii’s Senate Judiciary Committee Wednesday endorsed a state minimum of $9.25, recognizing what committee Vice Chairwoman Maile Shimabukuro called "a disconnect between the cost of living in Hawaii and the wages you earn in Hawaii."
That is true, but the question is whether such a large increase in the minimum wage will result in layoffs by small businesses that can’t afford it. Most Hawaii businesses have "no extra money" to pay more wages, said Tim Lyons, vice president of the Hawaii Business League. Enacting raises gradually over multiple years may be more sensible to increase wages without throwing people out of work.
Obama’s plan to work with states "to make high-quality preschool available to every child in America" coincides nicely with Abercrombie’s worthwhile move "focusing on best preparing our keiki before they enter our public schools at kindergarten." The state needs $2.9 million to start the planning and subsequent yearly allotments of $28.2 million to deliver services to about 3,400 4-year-olds. Obama said every dollar invested in high-quality preschool "saves $7 later on by boosting graduation rates, reducing teen pregnancy, even reducing violent crime," but again, he gave no indication how many federal dollars will be available to states for that effort.
Both top executives on the state and federal levels have broached fine rhetoric in preparing our young people for success, in order to rebuild America’s economy from within. We agree with Obama’s desire to "reignite the true engine of America’s economic growth — a rising, thriving middle class." But the hyperpartisanship that is stalling needed tough choices to deal with our collective long-term debt only sets the nation back further —and until we can get a handle on that, we will be hampered in our ability to move forward.
