Leading economists at UHERO (University of Hawaii Economic Research Organization) and the state DBEDT (Department of Business, Economic Development and Tourism) have forecast Hawaii’s economic growth over the next three years as falling to 1% or less annually. This will lag the forecasted national average by 50%, putting our state among the nation’s weakest in economic vitality.

With Honolulu’s recent restrictions on transient vacation rentals and the probable decline in tourism activity due to the coronavirus outbreak remaining to be seen, even that forecast might be incomplete.

The ramifications of an economic decline will be far-reaching. All sectors of society will experience consequences, but individuals who already live paycheck to paycheck — more than half of Hawaii’s residents — will have the most to lose. Unless the inertia in our economic growth is reversed, our community faces the prospects of lost jobs, increased business insolvencies, cuts in government services, curtailment of grants-in-aid to social service agencies, and increased tax burdens for taxpayers at all income levels.

Overall the quality of life in Hawaii will decline for its citizens.

With this in mind, leaders in the Legislature and the governor have agreed upon an unprecedented joint package of proposals to address the challenges posed by a slowing economy.

>> House Bill 2543 and Senate Bill 3101, relating to access to learning, proposes to make early education more accessible and affordable to all Hawaii’s families.

>> HB 2541 and SB 3102, relating to helping working families, will raise the minimum wage to put more money in the hands of residents.

>> HB 2544 and SB 3103, relating to a school facilities agency, will fund improvements for Hawaii’s aging schools, improving learning environments for our keiki.

>> HB 2542 and SB 3104, relating to land development, addresses the critical need for affordable housing in Hawaii.

The initiatives within this joint legislative package address economic inequality, reform governmental processes, promote development of housing for local residents, expand educational opportunities and increase the workforce talent pool.

Unlike measures adopted in the past that have tended to be piecemeal and focused on specific interests, this comprehensive set of measures are solidly aimed at launching fundamental change to benefit the community at large and stimulate economic growth. They represent the most ambitious set of legislative proposals in recent years, a collaborative effort aimed at fulfilling a renewed vision for Hawaii.

Why now? Because the future of Hawaii depends on it. Our state cannot succeed if more than half its residents are one medical emergency or unexpected car repair away from financial disaster. We cannot stand by and watch our best and brightest keiki move to mainland cities for better paying jobs and a higher quality of life.

The long-term effects of the bills can help to lift the economy and create opportunities for upward mobility for thousands of residents. The combined benefit of early education and affordable childcare improve earning potential for parents and children. An increase in affordable housing availability and wages combined with tax relief will put more money in the pockets of residents, allowing them to live beyond their next paycheck.

As will be expected, naysayers have already come forth to criticize the proposed measures. Is it perfect? There is no such thing. Politics is the art of the possible. While refinements might be appropriate over the course of the legislative session, the joint package offers a comprehensive approach to strengthen our economy and the vitality of our community. They represent a thoughtful effort to balance divergent viewpoints and interests.

If our state’s elected officials can work together with the private and nonprofit sectors to turn these proposals into a reality, Hawaii’s people will be better assured of a stable future.

Colbert Matsumoto, chairman of Island Holdings, chairs the Government and Civic Engagement Committee of the Hawaii Executive Collaborative; Pono Shim is president/CEO of the Oahu Economic Development Board; Richard Wacker, CEO of American Savings Bank, chairs the Innovation Economy Task Force of the Hawaii Business Roundtable.