The state of the state is … lacking a road map.
Gov. David Ige, in his annual “State of the State” address on Monday, said he would convene lawmakers and business and community leaders to develop “a plan of action for Hawaii’s future” that he dubbed “Hawaii 2.0.” He wants them to come up with recommendations by April for specific initiatives that likely would require action in the 2022 legislative session — next year — to have effect.
Not only was the vision Ige laid out murky at best, his timeline for action has left lawmakers, businesses and others looking for leadership frankly worried. Ideas brought to the state Capitol in April will be be too late to produce meaningful, immediate action, legislative leaders said — and that’s really what’s needed now. Further, Ige already should have been crafting action strategies with his department directors and deputies.
Ige delivered his relatively brief, half-hour remarks in advance of submitting more than 200 anticipated bills. Lawmakers had been told to expect measures for covering an estimated $1.4-$1.8 billion budget gap.
But no details were forthcoming about taxation strategy, or much else. The speech was the next point at which lawmakers earlier were told they could expect a fuller blueprint, said state Rep. Sylvia Luke, who chairs the House Finance Committee.
It never came. And the most glaring omission was any guidance on how the state should start rebooting its bedrock industry of tourism.
What Ige delivered was a summary of the state’s considerable outlay of relief aid to those affected by the pandemic restrictions. Support will continue now, he said, pledging that the state would cover the interest on federal money borrowed to replenish the unemployment insurance benefit fund.
That’s important, because the interest payments are otherwise passed on to businesses that would pay into the fund at a much higher rate. Businesses have been suffering enough as it is.
However, other than to note the state’s overwhelming dependence on tourism and the need to diversify, there was no express direction for helping it resume — even partially recover — its place as the leading generator of economic activity for the near term.
House Speaker Scott Saiki said members see three goals guiding this 2021 session: stabilizing the budget, protecting public health and reopening the economy. The speech filled in none of the blanks.
Saiki did acknowledge that administration bills should shed more light on the governor’s thinking. However, a lot of interested parties — Ige referred to them as “stakeholders” in the address — needed to hear something immediately, not later.
Here are a few of the points Ige did make:
>> Despite reducing the budget by $402 million, transferring $345 million from the rainy-day fund and eliminating $350 million from state programs, revenues are still expected to lag normal levels until 2024.
>> The pandemic illuminated the potential of some economic support and job opportunities coming from a “digital economy” that allows people to work and collaborate remotely. Ige underscored his support of broadband internet improvements to make this possible for more islanders, including students who need access to distance learning options.
>> Construction is a rare bright spot in the economy, and Ige touted the new School Facilities Agency as an example of a way to facilitate improvements to aging school buildings. But, he did not explain how yet another agency could enhance efficiency for a state that desperately needs more of that, and less of government.
It was, in the end, a message deficient in substance, outlining few priorities or directives on how Hawaii should proceed. Ige is clearly casting about for help in plotting a course out of the current crisis — but what the public is wanting most is leadership from the governor himself.
