HONOLULU– Governor Neil Abercrombie today responded to a letter received from the Hawai'i State Teachers Association (HSTA) last night.  HSTA president Wil Okabe sent a letter which notified the Governor of HSTA’s intention to seek ratification of the January 2012 proposed agreement that was previously rejected by its members.

Prior to this letter, negotiations have been ongoing based on HSTA’s February 28, 2012 proposal and the State’s March 19, 2012 settlement offer.

Governor Abercrombie stated:

“What Mr. Okabe has proposed to HSTA members is a decision made solely by HSTA leadership.  This is entirely an internal union action in which we have had no participation.  The letter that we received from HSTA last night was unsolicited.

“According to the Attorney General the agreement which was rejected in January 2012 has no legal standing.  In addition, in February, HSTA submitted a comprehensive proposal, which has not been withdrawn.

“We look forward to crafting an agreement with the HSTA to be submitted to teachers for ratification that is clear, current, and correct.

“As the school year ends, we appreciate the work that our teachers have done for student achievement and we look forward to resolving this labor dispute with their union.”

The letter from HSTA and the Governor’s response are attached.

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Attached Letters

Brief Recap Video of The 2012 State Of The State Address (See the original video of The State of The State in full below the transcript)

Photos From The 2012 State Of The State

TRANSCRIPT

Mr. President, Mr. Speaker, former Governors, distinguished justices of the courts, mayors, representatives of our Congressional Delegation, members of the Hawai'i State Legislature, other elected officials, honored guests, family and friends.  Aloha.

One year ago, I stood before you to present the sobering fiscal reality facing Hawai'i.  At that time, we faced an enormous deficit and the effects of fractured government services.  The discussion was not about “whether” we needed to find additional revenues, but about “where” we needed to find them.

But by working together and through shared sacrifice, we have started to turn the corner.  This past year has not been easy but we have accomplished our purpose.

I want to thank the Legislature for your collaboration.

Thank you to the public for weathering through those difficult choices.

Thank you, especially to our state employees, who agreed to labor savings and additional payments for health benefits.

There was no way for us to have balanced our budget and achieved today’s fiscally favorable outlook without the commitment of everyone.  To all of you who came to work each day bearing the burden of cuts and slashes to your programs for the past three years; and to those of you who gave up furloughs because of your commitment to serving Hawai'i’s people, I thank you.  Mahalo plenty to each and every one of you.

Together, we are moving forward.  And moving forward means leaving behind the drama of the recent past.

It is for that reason that I have again, requested that the Hawai'i State Teachers Association provide us with a proposal as soon as possible.  After good faith negotiations achieving two agreements, the teachers still have not ratified a contract.  I will continue to press for a resolution.

Nonetheless, we must continue our focus on our children and students’ performance.  We cannot wait any longer.  We wanted to cross the Race to the Top finish line side-by-side with the HSTA.  Make no mistake we will cross that finish line.  Our students deserve no less.  We will be using all management, administrative, legislative and legal tools we have at our disposal to implement an evaluation system that not only measures, but achieves student growth; turns around low-performing schools; and supports teachers in increasing their effectiveness.

Just as we must concentrate on providing for our children’s future, it is critical that we continue the economic momentum we have achieved.  Since last year, Hawai'i’s recovery has been steady.

• The visitor industry – a key element – saw 3.4 percent growth in the number of visitor arrivals, and total visitor expenditures have grown by 15.1 percent, resulting in an additional $5 billion dollars flowing into Hawai'i’s economy.
• A solid indicator of our growth is the average 8 percent increase in our general excise tax revenue compared to last year.
• Despite the unfortunate closing of Hawai'i Medical Center, our unemployment remains one of the lowest in the nation.
• Payroll employment increased 1.3 percent after three years of decline.
• Initial unemployment claims declined 8 percent in 2011.
• Bankruptcies dropped 15.9 percent.

Nonetheless, my budget team and House and Senate fiscal committees have warned, we must remain wary of the current national and European economic uncertainties, which continue to loom ahead.  Earlier this month, the Council of Revenues projected a 3 percent decline in our revenue forecast, which amounts to $130 million.

The question then, is how do we address what could be a daunting fiscal picture.

Last year, when the revenue projections plummeted, we met the enormous challenge of our shortfall through shared sacrifice and collaboration.  We instituted fiscal prudence and discipline, through tools provided by the Legislature.  The result was a general fund balance of $126 million.  This was the first positive balance achieved in three years.

Despite this budget success then, current fiscal uncertainties swirling around us mean that our supplemental budget proposal must reflect continued discipline.  Through our strong management of resources in 2011, we were able to achieve nearly $86 million in general fund savings.  It is these savings that we will use to propose initiatives that will support and strengthen our economic recovery.

The first is construction.  All the signs show that private investment and construction appears hesitant and tentative.  Therefore, it is the public sector that must step up to invest in repairs and maintenance, construction projects and infrastructure improvements.  By aggressively putting these projects into action, we will ensure that job creation continues.

Our recent bond and refinancing sale of nearly $1.3 billion, along with $1 billion of projects that are already on the budget books and another $300 million proposed in this supplemental budget will spur an immediate rise in job growth.

These New Day Work Projects were chosen because they not only address critical infrastructure needs, but more importantly, they are primed and ready to go.  We looked for projects that were not mired in permitting delays, or only in design and planning stages, but those that are ready to provide impact now.

After my initial discussions with the House and Senate, I know that we are all committed to looking at an aggressive budget schedule for these repair and maintenance construction projects.  I am committed as well to working with you to make sure that we have a healthy and strong construction budget and a solid plan to continue our investment in our economy.

But, investment is not only about immediate impacts to the economy.  It is about our long term vision towards the future.  A prime example is the proposed Pohukaina project that is designed around the consolidation of mixed-use and mixed-income.  To curtail sprawl and protect our precious available lands, we must focus on urban density and provide working families affordable housing opportunities.  This is a central project, and the first step in future plans for further smart development along the 'Iwilei to Waikiki corridor.

Not only is it important to emphasize brick and mortar, we must also build an infrastructure for technology to meet the demands of the 21st century.  This is the intellectual and social infrastructure that we must have to provide opportunities and experience for our people to become an advanced workforce that can compete in the global marketplace.

We will move forward on our Hawai'i Broadband Initiative by requesting $2.9 million to enhance online services for eHawaii.gov, advance research for transpacific fiber landing stations statewide, and initiate a “one-to-one” laptop program for Hawai'i’s public schools, to provide laptops for every student.  Not only are these advances needed, but they are crucial in ensuring Hawai'i’s global connectivity and technological advancement.

We will also be seeking to move oversight of telecommunications to the Department of Commerce and Consumer Affairs.  Telecom will now be regulated by one agency, rather than having multiple functions spread out over multiple departments.

Similarly, we are moving forward on our comprehensive plan to consolidate all of our state technology under the Office of Information Management and Technology, led by Hawai'i’s first Chief Information Officer.  For this important mission, we are requesting $10 million.

Finally, in this area of our economic future, we must never forget that we need to invest in being proper stewards of our Hawai'i nei.  We must nurture our environment, not only because it is pono, but because it is an essential investment for kama'aina and visitors alike.

It is for that reason that I am proposing that we invest $5 million in protecting our watersheds.  If we are going to nurture the ahupua'a of every island, if we are to keep our oceans blue, then we must save Hawai'i’s forests and preserve our water resources.

Paradise is our home, it needs our devotion and care.

Our islands attract travelers from around the world.  So too, the film industry also depends on showcasing the beauty and variety of our aloha state. We’ve seen what these islands can look like on big screen and television. Having top-rated television shows and award-winning films like “The Descendants,” speaks volumes about Hawai'i as a television/cinema venue.

It is for that reason that we will be requesting the legislature look at the TV and Film Tax Credit with the intention of drafting necessary changes in making it permanent.

All of our work comes down to one underlying purpose – to serve Hawai'i and its people.  I mean it broadly and inclusively.  It is part of our culture and our history.  We are one 'ohana, one family, one state.  So, we create programs, establish services and pass laws to meet that obligation.  In short, we best care for our people by investing in them.

That investment begins with our youngest children.  Early childhood education lays the foundation for a lifetime of learning and results in productive citizens who will someday manage our businesses, build our homes and offices, welcome our visitors, care for the sick, make new discoveries in science, and lead us into the future.

We are at a crossroads when it comes to early childhood education.  For too long, we have continued old patterns that treated early education as something that is optional, a luxury for only those few who have the means.

“Research shows that 85 percent of a child’s brain development takes place before the age of five and that children who have quality early experiences are more likely to graduate from high school, attend college, and contribute positively to the economy.  Yet, many of Hawai'i’s children are entering school unprepared.  It’s time to invest in our children, and invest in our future, so that our state can thrive.”

This observation from Be My Voice Hawai'i, illustrates without equivocation that early education is not just an option, it is a fundamental necessity if we are to set the broader educational stage for our children.  It is not just about learning to read and write, it establishes healthy attitudes towards learning that will stay with them throughout their lives.  We also know that early education greatly enhances a young person’s sense of self-worth and confidence that, in turn, positively affects learning.

Early childhood education must be the initial step on the education ladder.  Failure to act now virtually ensures that our children will fall behind.  If they are not our priority, then we no longer know the meaning of the word.

The state’s Early Childhood Coordinator Terry Lock has put together a team to create a unified framework.  This early education plan for the state will be the guide for building a stronger quality early care and education system for our youngest children and their families.

Investing in the next generation is the wisest decision that we can make as a people.  And make no mistake – it is an investment with long-term returns that will far outweigh initial costs.

Last session, I forwarded difficult proposals to address difficult times.  In stark contrast to one year ago, as a result of tough-minded administrative and legislative action, the state finds itself in an all-too-rare financial situation of not having to pay for debt or to balance the budget by raising taxes.

We will continue on this path of strong fiscal management and strategic financial investments, as indicated in Opening Day remarks by President Tsutsui and Speaker Say.

We now have the luxury of weighing solutions to behavioral and societal issues on their own merit.  We can ask ourselves what will be most effective and do the most good for our children without the distraction of having to balance the budget on a new tax program.

The fact remains that the link between sugar-sweetened beverages and health is undeniable.  I have proposed the establishment of a task force, with members from the public and private sectors, to identify and then implement a solution to this very real health issue in our state.  The group’s objective will be navigating us away from the path that has led obesity rates in Hawai'i to have doubled in the last 15 years.  Sadly, more deaths and illnesses have occurred from chronic diseases than from contagious diseases in Hawai'i.

As our Director of the state Department of Health recently noted, obesity is not just about losing weight for our children…  “It is a deadly accurate predictor of cancer, heart disease, stroke, diabetes and other mental and physical ailments” that can follow our children throughout their lives.

For these early childhood education and health initiatives, we are requesting $1 million.

As important as these issues are for our children, the issues affecting our kupuna are growing in importance in conjunction with their numbers.  Last year, the first of the Baby Boomers reached retirement age.  Hawai'i acutely felt this demographic shift not only because of their sheer numbers, but also because Hawai'i enjoys one of the highest life expectancies in the nation.

That is why I am proposing $1.4 million to begin to create one-stop shops across the state for information on aging, to assist all of our kupuna who face the challenges of aging and restricted mobility.  We are working with federal, county and community partners to establish Aging and Disabilities Resource Centers, which will serve as a single point of entry for all long-term care support and services in the state.  The centers will streamline eligibility determination, minimize the need to navigate multiple bureaucracies, and facilitate informed choices about long-term care.

But this initiative to ease access to services is only the start.  We need to have a further and deeper conversation about long-term care.  Seniors want to age in their communities, they want to age in their homes.  But more importantly, they deserve to do so.  And they deserve to do so with dignity.  That is why I am committed to strengthening our system of home- and community-based services.  Their needs can no longer, and should no longer, be ignored.

The sudden shut down of two Hawai'i Medical Center hospitals on 'Oahu at the start of this year emphasizes this issue and had widespread ramifications through the medical community and the state, including those who suffer from kidney-related illnesses.

An emergency appropriation for a grant of $1.8 million to the National Kidney Foundation of Hawai'i will support this important health service.  We pledge to help those who have stepped forward in the private sector to ensure that the people of Hawai'i have crucial medical care and expertise.

Our state Department of Labor and Industrial Relations immediately provided rapid response services to employees at both Hawai'i Medical Center worksites, giving them information on applying for unemployment benefits, health insurance options, potential workforce training programs and other services.

We appreciate all the assistance the department has received in putting together these opportunities, which will help workers transition.  In Hawai'i, we must think of ourselves as 'ohana first.

This spirit of aloha is deeply rooted in the diverse cultures of these islands.  We must never forget that it is the culture of our Native Hawaiians that we so proudly share with ourselves and the world.  The recent settlement in principle with the Office of Hawaiian Affairs directly addresses ongoing issues that have remained unresolved for decades.  The proposed settlement transfers about 25 acres in Kaka'ako to the Office of Hawaiian Affairs.  OHA can use that resource to immediately benefit Native Hawaiians.  In turn, the proposal provides approximately $200 million in value to settle claims against the state.  More importantly, it brings closure to this longstanding rift allowing both the Native Hawaiian community and the state to move forward.  It is my hope that this heals old wounds.

We have also begun to make progress in one of the biggest challenges faced by our community – homelessness. A coordinated approach and strong desire to help people has been the basis of a multi-pronged effort to assist the homeless in Hawai'i – to provide not only temporary shelter for those who need it but to help them to become productive citizens.

We have and we will continue to invest in the potential of those who are currently homeless.  In July 2011, I signed an executive order that established the Hawai'i Interagency Council on Homelessness, a 24-member council comprised of community leaders, state department directors, and federal agency representatives to develop a unified plan on addressing homelessness.  The Council aligns its efforts with the U.S. Interagency Council on Homeless, established by President Obama in 2009.

Led by the state’s first Coordinator on Homelessness, Marc Alexander, the council worked to bring together a patchwork of organizations that are now seamed together as a single quilt to meet their goals of 1) increasing transitional and permanent housing options, and 2) acquiring increased federal funding.

All these initiatives are not only about saving or spending money or programs and projects.  It is about "how" to spend precious taxpayer dollars.  A key example of this is the Justice Reinvestment Initiative.  The data is clear that from 1997 to 2010, violent and property crime has steadily decreased by nearly half.  Despite these improvements in public safety, the incarceration population has remained the same.  We must change the way in which our laws work, change the way in which the system works, so that we can make a clear distinction between those who need to stay in prison to keep the public safe versus those who present little risk.  But, we must also provide proper and consistent supervision to those who are released so that we act with dispatch when any offender fails to take advantage of the opportunity offered for a productive life.

After an unprecedented collaboration between the Governor’s Office, Justice Department, Public Safety Department, key lawmakers, the Judiciary and The Council of State Governments Justice Center, we will be proposing legislation that improves the criminal justice system utilizing the most up-to-date strategies.  And we will do this with existing resources.

And when we talk about “how” we spend our money, we must ask ourselves about why we continue to send billions of dollars a year outside of our islands to meet our energy needs.

Two weeks ago, Tesoro Corporation announced it would be selling its refinery here in Hawai'i.  This news was not a surprise.  Over the years, I have indicated we are at risk given the rising cost of crude oil and the severity of speculation in the global oil market.  I know that there is uncertainty for current employees at Tesoro as it starts the process of seeking an appropriate buyer.  Our Department of Labor and Industrial Relations stands ready to provide job assistance for those who need it.

I also know there is uncertainty for those who are wondering what the sale of the state’s largest refinery means for the cost of fuel in the state.  Well, Hawai'i has never had control over the high cost of energy.  So, one thing is certain – and you have heard this before – we must lessen our dependence on imported oil.

This is not just an issue about sustainability.  This is about the survival of our state.  In moving forward on our path to advance a clean energy future, failure is not an option.  Reducing our dependence on imported oil will take an equal commitment by government, business, community, family and individuals.  We can no longer view energy production or distribution in an island-by-island context.  We must be united on a statewide basis.  My administration is committed to clean alternative and renewable energies for the benefit of all of our islands.

In November, I signed two international agreements that demonstrate that commitment.

The first was signed during the APEC Summit with the Vice Chairman of the China Council for Promotion of International Trade to pursue mutual interests in clean energy development.  This year, we will continue to build upon that relationship and, by April, I hope to have a more defined memorandum of understanding to advance projects that will result in business opportunities.

I signed a second agreement with Japan-based New Energy and Industrial Technology Development Organization (NEDO) to collaborate on building a first-of-its-kind smart grid demonstration project on the island of Maui.

For this project, Hitachi, NEDO and Mizuho are investing $37 million in advanced smart grid technology to improve integration of variable renewable resources into the electrical grid.

These agreements mark Hawai'i’s emergence as the test bed of the Pacific for clean energy demonstrations and clearly indicate the promise that energy projects offer for economic growth.

Currently there are about 80 renewable energy projects that are demonstrating progress in becoming commercial enterprises that have the potential to help the State of Hawai'i achieve its collective energy goals.  This Administration will continue to look at every option – wind, solar, natural gas, photovoltaic, geothermal, biofuels, ocean energy and other technologies.  We will be aggressive but respectful in our approach to our island environment.

These projects are just the first step, and in the next few months we will be unveiling a comprehensive roadmap for the state, beginning on Hawai'i Island, for building a world leading, sustainable economy standing on our people’s history of self-sufficiency in both food and energy.  It is time for us to work together to put willpower to our resources and make this a reality for the state.

That is why I have assigned Lt. Governor Brian Schatz to coordinate and support our energy priorities.  We must stay the course when it comes to advancing our clean energy future and ensure that collaborative decisions are being made.  Swift and appropriate regulation must take place, as well as healthy competition and local entrepreneurship, community involvement and integration.

The time of sustainability rhetoric is over.  Bold action is needed now.  We must address two critical issues to position ourselves for increasing use of alternative energy – reliability and infrastructure.

While Hawai'i has an abundance of natural resources to tap into, the system cannot maintain itself solely with sources that shift with changing winds or the sun hiding behind the clouds.  The system demands a clear measure of reliability of energy to feed into the grid.  Therefore, one of my primary energy initiatives will be to provide the Public Utilities Commission with the explicit authority to develop, adopt and monitor electricity reliability standards.  This will include jurisdiction over how independent power producers connect to the grid.  Currently, while the PUC can take on issues through its formal docket process, there is no comprehensive authority to oversee reliability standards.  To ensure that we have control over the reliability of the energy feeding into the system, we need to give the PUC this authority.

But more importantly, we need to create the infrastructure for stability.  This means making the long-term infrastructure investments that ensure our electric grids are stable, reliable and modern enough to integrate alternative and renewable energy technologies.  Our investment now will benefit future generations.  Had we made this commitment in years past we would be benefitting from it today.

One of those investments is an undersea cable that can connect our island grids to provide stable, reliable electricity between islands.  This integrated grid will provide stable energy prices and equalize rates between the islands, which will benefit all of us.  To pay for this critical piece of infrastructure, we are proposing legislation that will attract private capital resources and expertise.  In today’s uncertain world, we cannot postpone Hawai'i’s clean energy future any longer.  We can only get there if we move now.  There is no legislation more critical to our future.

I assure you, the energy debates that will take place this session will echo the debates that took place here when I was a legislator in these chambers in the 1970s.  Let us not repeat a history of failure to act in 2012.

Whether these initiatives are aimed at reducing our dependence on fossil fuels, or to assist and uplift the homeless, or to help our kupuna or our children, all represent wise and prudent investments in our people.  The cost of not taking action now will most certainly result in higher costs not only in dollars, but in social dysfunction as well.

I am deeply grateful to Speaker Say and President Tsutsui for clearly recognizing and delineating the opportunity to work together on these issues in their respective Opening Day remarks.

With the theme of “Pupukahi I Holomua – Unite to Move Forward,” they specifically referenced the main objectives – growing a sustainable economy, investing in people and transforming government.  I want to extend my pledge to members of both the House and Senate here assembled, to work collaboratively with you as we serve all our constituents.

I know for many it is hard to see beyond today’s needs when today’s needs loom so large and immediate.  But unless dealt with now, today’s challenges can only multiply in difficulty.  This is not acceptable.  We have the obligation to make a better future for our children.  We live in paradise and taking care of each other is a value that is fundamental to the aloha spirit.  This is about having aloha for one another and doing what is pono.

I want to close then with something that exemplifies what aloha for each other is all about.  At one point when the way forward was not always clear, Representative Karen Awana gave me a note, the essence of which was “A'ohe Hana Nui Ke Alu 'Ia” – no task is too big when done together by all.  I keep it in my desk for those times when I can use a little reminder of the meaning of aloha for each other.  Her kindness and goodness is truly aloha in every way.

I pledge my aloha to you all in that spirit.  Mahalo nui.

We are creating good jobs for people so they can do more than just make ends meet. We are already starting to see signs of improvement, and we will continue pressing ahead with our $1.4 billion capital improvement projects, New Day Work Projects. We are building the foundation for our next economic boon by capturing our own renewable energy and developing ultra-high speed Internet capabilities to give Hawai'i the competitive edge that we need. We are doing this while improving the business climate for our entrepreneurs and small businesses.

Our second charge is to invest in the education, skills, and wellbeing of Hawai'i’s people.

We are building private-public partnerships in early childhood, healthcare technology, housing, preventative social services, and other long term priorities that we have ignored. We are moving on Race to the Top initiatives to improve our public schools. We are making progress on homelessness, and we are changing our approach to public safety so that we can bring our prisoners home and ultimately reduce the number of people who end up in prison or on the streets. Taking action now will make a big difference later.

Our third focus is to transform state government into an efficient and effective enterprise.

With reorganization, we are conducting government as the professional enterprise it must be to meet the public need. We will continue rehabilitating our fiscal health by following a financial plan that will recapitalize our reserves, like the Rainy Day and Hurricane funds, pay down our debts, and carefully manage our cash flow. We are professionalizing our human resources management to bring out the best from our outstanding public workforce.

Positive change is already under way. We are moving with confidence to build a New Day in Hawai'i.

Our team has compiled a video, photo album, a new online quiz, and a written summary showing some of the many actions and achievements of this Administration.

1 YEAR ANNIVERSARY VIDEO

1 YEAR ANNIVERSARY PHOTO ALBUM

Take The New Day Quiz Challenge and see where you rank in your knowledge of This Administration's Actions

Here are some more highlights:

Fiscal Discipline

The Abercrombie administration took office with the State facing a $1.2 billion deficit for the period of December 2010 to June 2013.  The administration immediately began addressing the deficit while minimizing the impact on services to the public, through a combination of cost savings on public employee health plans, better management of state bond issues to reduce interest costs and a retooling of state departments.

By the end of the fiscal year on June 30, 2011, the State was able to enter the new fiscal year with a positive general fund balance for the first time in 3 years.  The administration negotiated labor savings with two major public employee unions to effect savings in wages and health insurance with no interruption to public services.  The State also negotiated a new pharmacy program that will save $24 million in the first year of the contract and lower dental insurance rates resulting in more savings without interruption to public services.

As a result, Standard & Poor reaffirmed the State’s “AA” rating for general obligation bonds saying in a November 8, 2011 press release that state, in part, that the rating is reflection of  “Governor Neil Abercrombie’s willingness to implement aggressive solutions, totaling $1.32 billion, to balance the fiscal 2011-2013 biennial budget in light of a projected budget shortfall that had reached $1.25 billion for the biennium…”

Education Gains

We now have unprecedented alignment in public education.  Recall that in the previous administration the DOE Superintendent and UH President were literally not at the table as part of the Governor’s cabinet, and that school was closed on Fridays.  All of that has changed.  On his first day in office, Governor Abercrombie reached out to the Superintendent of Education and the President of the University to discuss what must be done to advance education in Hawai‘i and in his first executive action, the Governor released funds to bring an end to Furlough Fridays.

With a newly appointed BOE, continued collaboration with the federal government on Race to the Top, we are improving student achievement and increasing resources to the system, and all because we are working together, focusing on what works and minimizing the politics.

This year, Hawaii demonstrated best evidence of educational improvement in the nation; Hawaii was the only state with gains in every grade and every subject on the National Assessment of Educational Progress which is the only valid comparison among states.  While much work remains to be done, the results demonstrate that Hawaii is primed for increased success as our focused reform efforts reach every classroom; our alignment and Race to the Top initiatives will increase our trajectory toward desired outcomes for our keiki and our state.  This includes widespread community support, including the Governor’s, for increasing graduation requirements so that our high school graduates will achieve the Common Core State Standards.

The Governor and UH are also aligned in an unprecedented way.  At UH we are investing in people by ensuring that more students earn degrees and certificates at UH.  This provides our residents with more knowledge, access to more career options and more opportunities to support their families and contribute to the community.  It also develops our workforce.  This year, UH received major federal grants to support these goals: $26 M of GEAR UP grants to support getting students ready for college and $24.7 M Department of Labor grant for job training workforce development (Community College and Career Training Initiative).

By 2014, public schools, libraries and university campuses statewide even in our most isolated and traditionally underserved communities will have high speed broadband connection enabling more distance learning and research collaboration; UH is leading the $34M federal grant to provide high speed broadband connections to our educational institutions.

Energy Self-Sufficiency

Hawai‘i is continuing to make progress toward our goal of reducing our dependence on imported fossil fuel by 70% by 2030.  Renewable energy investments in Hawai‘i have grown from $362.6 million in 2009 to a projected $1.3 billion in 2011.  The State Energy Office is partnering with the U.S. Department of Energy, military, local businesses, and local organizations and has met with over 400 clean energy companies this year, in tracking more than 64 renewable energy projects and has received a total of $46 million in federal grants.  These funds will result in a stronger grid that can take on more renewable energy and accelerate the adoption of electric vehicles in Hawaii.

State government has led by example by reducing total electric consumption by 2.8% last year over 2009 which saved more than $20 million in energy costs statewide.  For example, photovoltaic panels were installed on the Kalanimoku Building saving the State $300 a day in electricity with more panels to be added in the future.  We also built the first public charger station for electric vehicles in Hawaii and are looking at installing more throughout the State, setting the stage for Hawaii to become a leader in electric vehicles.

In addition the State is building a 10 MW facility in partnership with Hawaiian Electric Co. to provide power to the grid and to power the airport in the event of a major emergency.  The plant, which will be fueled by renewable biodiesel, is a great example of government partnering with private industry to provide a needed service and save millions of dollars over the next 20 years.

The Governor recently signed a Letter of Intent with China to work on renewable energy projects and an MOU with Japan to solidify ongoing energy efforts like the first-of-its-kind smart grid demonstration project on Maui.  The multi-million dollar project is aimed at improving integration of variable renewable resources, such as solar and wind power, and preparing the electric system for widespread adoption of electric vehicles.  With all of this change taking place Hawaii is now set to start the growth of green jobs industry.  The State received a large federal grant and projects an additional 2,900 green jobs in 2012, a 26% growth over 2010.

Asia-Pacific Leadership

Governor Abercrombie traveled to Asia where he laid a foundation for economic growth with Asia and pushed for a more streamlined visa process to sustain visitor industry growth and outreach to our friends in the Pacific.

APEC was the biggest meeting that Hawai‘i has ever hosted, and so it was an important test for us as we establish our leadership in the Asia Pacific region.  We passed with flying colors.  APEC Ambassador Kurt Tong gave Hawai‘i an “A-plus” for our aloha spirit, facilities and efficient service.  The Hawai‘i Tourism Authority, Hawai‘i Convention Center, visitor industry and the State of Hawai‘i will pivot from this positive experience to bid for future events in this highly lucrative sector of the tourism industry.

Importantly, the Governor made sure that the focus of APEC was to use it not only to promote tourism, but to reposition Hawai‘i as a leader in clean energy and attract the kind of investments that will lead to long term prosperity.  These efforts capitalized on the State’s hosting of the Asia Pacific Clean Energy Summit just two months earlier.  While we have always maintained that the benefit of APEC is in opening the doors to developing long-term relationships, Governor Abercrombie was able to secure a letter of intent to pursue mutual interests in clean energy development following the “Transforming to Clean Energy” Hawai‘i-China CEO Forum.  Hawai‘i company Sopogy also executed a memorandum of understanding for equity and project finance with Sichuan Dongjia Investment Company following the same forum.

Homelessness

The appointment of Marc Alexander as the State’s Homeless Coordinator has been widely recognized as an important first step.  The results so far are promising.  First, we finally have the State and the City & County of Honolulu working together on this problem.  Second, we are collaborating with non-profits.  The 90-Day Plan was the catalyst for immediate collaboration among state and county governments, nonprofits and community groups and those efforts will continue with the Hawai‘i Interagency Council on Homelessness, created by Governor Abercrombie by Executive Order.  While the problem of homelessness will require continuing effort, the first 90 days resulted in impressive achievements including:

• More than 200 people from Waikīkī and the urban core, including 40 vulnerable individuals, were moved into transitional or permanent housing.
• 85 people in the Wai‘anae area were moved into permanent housing.
• 65 people on Maui were moved into permanent housing.
• 44 people on Kaua‘i were moved into permanent housing.
• 136 people on Hawai‘i Island were moved into transitional or permanent housing.
• Next Step Shelter in Kaka‘ako expanded its hours to be open on the weekends.
• “Safe parking” zone program was implemented by Hope Services Hawai‘i in Hilo.
• Online resources and information were updated including a “wish list” and “volunteer opportunities” for shelters.
• Over 500 calls were received by the homeless hotline and calls continue to be received daily.  Of the 500+ that called, over 130 callers were referred into housing resources.

Tourism Promotion

With APEC under our belt and the Governor and Lieutenant Governor both making trips to Asia, we see these efforts beginning to bear fruit.  An unprecedented public private partnership including Hawaii Tourism Authority and our friends in Asia is resulting a record year from China and Korea, a strong recovery in Japan, and a solid year from the U. S. mainland.  For the first 8 months of the year:

• Arrivals are up 2.5%
• Visitor days are up 4.0%
• Visitor expenditures are up 16.1% to $8.25 billion, nearly $1 billion more than the same period last year.

In addition, new lift from Asia and Oceania are opening emerging markets for Hawai‘i.  This includes the following new or expanded service from Honolulu:

• China Eastern Airlines – Shanghai
• Asiana Airlines – Seoul
• Hawaiian Airlines – Osaka, Fukuoka and Sydney
• Delta Airlines – Fukuoka and Osaka
• Japan Airlines – Nagoya
• Increased charter service out of Japan
• New and increased service from Brisbane, Melbourne and Sydney

Workforce Housing

Under Governor Abercrombie’s leadership, the State has embarked on a comprehensive strategy to expand and repair public and private workforce housing in partnership with the federal government and private developers.  Projects that have been started or completed this year include:

• Restoration of hot water and other repair and maintenance projects at Mayor Wright Homes.
• Sale of Towers at Kūhiō Park to a private developer that will renovate, maintain and manage the property.  Additionally, Kuhio Homes and the surrounding community is also planned for modernization.
• Below-market rentals at Hale Wai Vista II
• Affordable for-sale homes at Holomua
• 690 Pohukaina mixed-use Transit Oriented Development-with affordable rentals and for-sale units in addition to community space

Doing Infrastructure Smarter

Almost every governor has made an effort to invest in infrastructure, but we have changed the way we do it, and the results are showing.  Since taking office, we released over $425 million for capital improvement projects all across the state, focusing on school and public facility repairs. These projects are contributing to Hawai'i having the nation’s second highest rate of growth in construction jobs over the last year. The departments of Accounting and Government Services, Transportation, Education, and the University of Hawai'i are taking the lead in making sure Hawai'i benefits from this economic boost.

Other Initiatives

Environment:

• Joint Forestry Memorandum of Understanding to promote private forest stewardship is a collaboration between state and federal agencies that will promote local job growth in the forest products industry while strengthening cooperation in the delivery of forest-related conservation assistance to private landowners and managers of the land.
• Creation of new Fisheries Enforcement Units by a partnership of the Department of Land and Natural Resources, Conservation International and the Harold K. L. Castle Foundation to increase enforcement in Hawai‘i’s nearshore fisheries.
• Waikīkī Beach sand replenishment project replenished sand along 1,700 feet of shoreline in Hawai‘i by a partnership of the Department of Land and Natural Resources, the Hawai‘i Tourism Authority and Kyo-ya Company.
• Restoration of 10 agricultural inspector positions to protect the environment from invasive species.
• Petitioned the Secretary of Interior for multiple designations under the America’s Great Outdoor Initiative to conserve the beauty and health of our land.  As a result, two projects highlighted by Secretary Salazar, the Aha Kahakai Historic Trail on the Big Island and the Wailua River National Blueway on Kauai as having great potential to conserve important lands and build recreation opportunities and economic growth for the surrounding communities.

Early Childhood

Naming of Terry Lock as the Early Childhood Coordinator tasked to develop an early childhood action plan.  In an example of public-private partnership the coordinator is funded in part through a grant by the W. K. Kellogg Foundation.  One of the first accomplishments by Ms. Lock has been to apply for the Race to the Top grant which may provide the State with over $20 million for early childhood development.

Information Technology Update

Establishment of the Office of Information Management and Technology to modernize the State’s technology system to improve government efficiency, under the direction of the first ever Chief Information Officer (CIO).  Governor Abercrombie appointed Sonny Bhagowalia as CIO in another public-private partnership, the Hawaii Community Foundation is partially funding the operations.

Native Hawaiian Issues

Appointment of the Native Hawaiian Roll Commission to begin the process that will lead to federal recognition of Native Hawaiians.  The Governor appointed the Native Hawaiian Roll Commission to lay a strong foundation for Native Hawaiians to seek federal recognition.  This unprecedented step will begin the groundwork necessary for Native Hawaiians to direct their own future.

An agreement in principal has been reached with the Office of Hawaiian Affairs to finally and completely resolve all claims of OHA’s share to ceded land receipts through July 1, 2012, at no cost to the State’s general funds.  If approved by the Legislature, this agreement would end decades of dispute over the State’s constitutional obligations.

Healthcare Transformation

Created by executive order and again with the help of private funding through the California Endowment, Beth Geisting was appointed by the Governor as the state’s Healthcare Transformation Coordinator and Dr. Thomas Tsang as the Senior Healthcare Advisor. Together they are developing a plan to align our state with the federal requirements for health care reform. They worked with the state’s Insurance Commissioner to set up the Health Insurance Exchange (The Health Connector) and apply for a federal grant to help fund The Connector.

Justice Reinvestment

The Department of Public Safety launched the Justice Reinvestment Initiative to help analyze our criminal justice system. The Governor, along with Chief Justice Recktenwald, Senate President Shan Tsutsui and House Speaker Calvin Say organized a working group to review data collected by the Justice Reinvestment Initiative and develop policy options that will decrease prison population growth. They will also adopt new reinvestment strategies that will save the state precious dollars and ultimately bring our prisoners home from out-of-state prisons.

Collective Impact

After years of budget cuts to health, housing and human services, the Abercrombie Administration is working collaboratively with the nonprofit sector to rebuild our safety net of services for our most vulnerable population. Using the STRIVE model developed by a nonprofit group in Cincinnati, five working groups were organized with representation from both the public and private sector to work on resolving issues in early childhood, the elderly, at-risk and foster youth, unemployed/working poor, and the homeless.

The Administration also began returning people back to work at the Department of Human Services and restructuring the Department so that applications can be processed more expeditiously for low-income children, adults and elderly residents eligible for food stamps and Medicaid.

Older Adults and Aging

With Dr. Wes Lum heading the Executive Office on Aging, we were able to work with the counties and community partners to develop a comprehensive plan to establish the Aging and Disabilities Resource Centers that will: 1) serve as a single point of entry for all long-term care support and services in the state; 2) streamline eligibility determination and minimize the need to navigate multiple bureaucracies; and 3) facilitate informed choices about long term care.

Aloha friends,

In a few days, we will be marking one-year in office.

Today, I was pleased to announce that the work we’ve done to rebuild our economy is paying off. A few days ago, the State of Hawai'i successfully sold $1.28 billion of General Obligation Bonds. This latest financial action is the result of the culmination of work by the Abercrombie Administration to restructure its debt and create a solid financial foundation.

Click here for a link to the full press release and the Standard & Poor's Report

What this means to you, the taxpayer, is that we are lowering the amount of debt that the State has in the future.  Gone are the days where we kick the fiscal can down the road.  We are picking it up and facing our financial obligations to make our economy better and ensure economic stability and growth.  We are lowering the State’s deficit.

This means businesses in Hawai'i can be confident in moving forward on projects that were on hold because the State’s economy was not looked upon as a favorable place to invest.

The tough decisions, many of which were considered unpopular, have attracted major investors, and the resounding success of our recent historic bond sale is the result.

Following the transaction, Moody’s Investors Service, Standard & Poor’s Ratings Service and Fitch Ratings affirmed the State’s credit ratings of Aa2/AA/AA. Standard & Poor’s commented, “Governor Neil Abercrombie’s willingness to implement aggressive solutions, totaling $1.32 billion, to balance the fiscal 2011-2013 biennial budget in light of a projected budget shortfall that had reached $1.25 billion for the biennium.”

Moody’s further cited the State’s “historical fiscal conservatism” because all of Hawai'i’s General Obligation debt is issued at a fixed rate, and repayment is relatively rapid with 95% of principal repaid in 15 years.  In addition, Fitch affirmed that the State’s “financial management is sound.”

My administration used our reserves to help pull us through the last fiscal year.  I am happy to report that we will be paying back those monies to the Hurricane Relief and the Rainy Day Funds.

I made the commitment to invest in education and rebuild our economy, sustain our Hawai'i for future generations and restore public confidence. We are sticking to our game plan and it is working.

Imua.

Click here for a link to the full press release and the Standard & Poor's Report

HONOLULU – State government and energy officials joined Governor Neil Abercrombie and Japan-based New Energy and Industrial Technology Development Organization (NEDO) President Hideo Hato at the State Capitol today as the two leaders signed a memorandum of understanding to memorialize ongoing efforts between the State of Hawaii and NEDO.  NEDO is an arm of Japan’s Ministry of Economy, Trade and Industry.  They are set to build a first-of-its-kind smart grid demonstration project on the Island of Maui.  The multi-million dollar project is aimed at improving integration of variable renewable resources, such as solar and wind power, and preparing the electric system for widespread adoption of electric vehicles.

“Anticipation for this project has been building for quite some time, and now it is official,” stated Governor Neil Abercrombie.  “Hawaii’s clean energy industry has shown significant year-to-year growth, and it is becoming a strong driver in our economy.   This project will invest $37 million in the development of advanced smart grid technology and will further position Hawaii as an international leader in the clean energy space, serving as a hot spot for global investment and research and development.”

The project is part of the Hawaii-Okinawa Partnership on Clean and Efficient Energy Development and Deployment, which was signed by the U.S. Department of Energy, Ministry of Economy, Trade and Industry of Japan, State of Hawaii and Prefecture of Okinawa in June 2010.  The partnership is intended to foster the development of clean and energy efficient technologies needed to solve global energy security and climate change challenges.  Japan and the United States designated Hawaii and Okinawa as the representatives for this groundbreaking partnership due to their demonstrated leadership and experience in clean energy and energy efficiency.

“It is our great pleasure to be provided a special opportunity to work along with Hawaii in a cutting-edge smart grid project under the Japan-U.S. Clean Energy Policy,” said President Hato of NEDO.  “Such mutual collaboration will contribute to a breakthrough toward a solution needed by both countries, expansion of renewable energy and integration of grid networks.  We hope that this project will provide a model for island grids in the Asia-Pacific region and across the globe.”

Hawaii’s clean energy goal is one of the most aggressive in the world, and has become a major catalyst for new business growth and innovation in the state.  With at least 66 renewable energy projects in various stages of development in the queue, Hawaii is fast becoming a major player in the global clean energy economy.  The fact that Hawaii is the perfect test bed for renewable energy has also contributed greatly to the state’s success.  Surrounded by the Pacific Ocean, blessed with year-round sun, consistent trade winds, and home to one of the earth’s most active volcanoes, Hawaii is one of the few places in the world capable of harnessing solar, wind, geothermal and ocean thermal energy – all within a 200-mile span.

“The Maui smart grid demonstration project will elevate Hawaii’s position in the global clean energy marketplace and reaffirm our position as an energy test bed in the Pacific,” said Richard Lim, Director, State Department of Business, Economic Development and Tourism.

With significant renewable energy already in place, Maui is the perfect location for the project, which is designed to establish a model to integrate clean energy in a smart grid system.  More specifically, the project will develop and install smart utility system controls in the Kihei area on Maui to improve the integration of photovoltaics and electric vehicles.  Advanced electric vehicle charging management systems will enable utility operators to better balance generation and power demand while accepting larger amounts of solar and wind power.

The project’s contractors, Hitachi, Ltd., Cyber Defense Institute, Inc. and Mizuho Corporate Bank, Ltd., will cooperate with the State of Hawaii, the Hawaiian Electric Company, the University of Hawaii and the United States National Laboratories.

Installation of the smart grid technology is expected to begin in late 2012, with the project becoming operational in 2013.  The demonstration project is scheduled to run from 2013-2015.

Governor Neil Abercrombie announced Representative Blake Oshiro will be joining Abercrombie Administration as his Deputy Chief of Staff.  Rep. Oshiro, who currently serves in the House of Representatives as its Majority Leader will be stepping down from his seat on December 7, 2011.

“I sincerely want to thank the Aiea community for giving me the privilege of representing them these last 11 years,” said Rep. Oshiro. “I accepted the Governor’s offer to become the Deputy Chief of Staff because I believe in Governor Abercrombie. I believe in his vision. I believe in his passion and commitment towards moving Hawai'i forward.”

“Blake Oshiro is a recognized leader in our community and a tireless public servant. His experience will be of great value to all of us,” stated Governor Abercrombie. “Blake’s legislative background and commitment to do what’s right will help us move our agenda forward.  I am very pleased and excited to welcome him to the team.”

During his tenure in the House, Rep. Oshiro served the residents of Aiea, Halawa Valley, Halawa Heights, Aiea Heights, and Red Hill.  He made significant contributions to policy and reform. Prior to being House Majority Leader, he served as the House Majority Floor Leader and presided over the House during the Second Special Session of 2007 to address legislation relating to the Hawai'i Superferry.  While in the House, Rep. Oshiro has also served as Committee Vice-Chair of Legislative Management, Vice-Chair of Judiciary. Vice-Chair of the Interim Task Force on Standards of Conduct and Co-Chair of Public Safety and Justice Task Force, Council of State Government.  

Rep. Oshiro, 41, is a graduate of Pearl City High School, the University of Southern California, and the William S. Richardson School of Law.  He was first elected to the House in 2000.  He is of counsel with Alston, Hunt, Floyd, & Ing; and serves as a Director for the Legal Aid Society of Hawaii as well as a member of the Young Democrats of Hawai'i.

In 2010, Rep. Oshiro was recognized with the Japanese American Citizens League Distinguished Service Award.  That same year, Rep. Oshiro was a recipient of the Hawai'i State Bar Association Champion for Social Justice Award.

“I decided to take on this new role with different opportunities and challenges because the Governor has a great team and I am excited to do my part towards making his plans, the reality of Hawai'i's future,” said Rep. Oshiro.

He begins his transition into the Abercrombie Administration immediately.  Rep. Oshiro will assist Chief of Staff Bruce Coppa with the Governor’s legislative agenda and other areas of policy.

Below is a brief video introducing Chief of Staff Bruce Coppa.

In an effort to save Hawai'i’s forests and protect our water sources, Governor Neil Abercrombie today announced a comprehensive action plan titled, “The Rain Follows the Forests.”

“Hawai'i’s forests are in trouble – more than half of our forests have been overrun because they were victim to the most damaging invasive species,” said Governor Abercrombie.  “We must work to reverse the grave decline of the islands’ life-giving forests to sustain and enrich current and future generations.”

Currently, only 10 percent of the priority watershed forests are protected; a level of management that has taken 40 years to achieve. The Rain Follows the Forests, which is derived from a common Hawaiian saying (Hahai no ka ua i ka ululâ 'au) calls for necessary stewardship of natural resources.  The Department of Land and Natural Resources (DLNR) has made securing the future of our water supply a priority and created this action plan to meet the following goals:

• Remove or contain damaging invasive weeds that threaten priority areas

• Invasive weeds degrade native forests; some invasive plants also consume more water than indigenous species.  For example, a forest of alien strawberry guava trees can evaporate 27 percent more water than native 'ôhi'a forests.

• Monitor and control other forest threats including fires, predators, and plant diseases
• Restore and plant native species in priority areas and buffer areas
• Establish benchmarks and monitor success of the on-the-ground actions
• Educate residents and visitors about the cultural, economic, and environmental importance of conserving native forests
• Promote consistent and informed land use decision-making that protects watersheds

These goals aim to double the amount of protected watershed areas in 10 years. It will require approximately $11 million per year and would provide for over 150 new natural resource careers.

“I am committed to working with the Legislature on finding creative ways to fund this plan,” stated Governor Abercrombie. “Investing in the protection of fresh water sources must be the highest priority for Hawai'i’s public leaders and the Department of Land and Natural Resources."

The proposed state funding for the Plan will be leveraged by working with watershed partnerships, alliances that protect and restore our mauka forests across property boundaries. Meeting the goals of the Plan will be essential to the success of realizing the vision for sustainability provided by Governor Abercrombie’s “A New Day In Hawai'i” Comprehensive Plan.

Paul Conry, Administrator of the Division of Forestry and Wildlife, said, "Today, with a growing population, declining forests and water supplies, and climate change accelerating those declines, the need to adequately protect and expand our forests remains is even greater.”

DLNR Chairperson William Ailâ, Jr. added, “Protecting forests benefits more than our water supply. As a fisherman, I know that mauka and makai are connected. Without forests to hold the soil, heavy rains will cause erosion that pollutes our beaches, reefs, and fisheries. Everything is affected downstream.”

“Investing in our most precious natural resource makes economic sense for agriculture, environment and our future drinking source,” said Senator Donovan Dela Cruz, chairman of the Water Land and Housing Committee.  “We need to be responsible and diligent in pursuing the protection of our finite water supply.”

Securing funding will also require partnerships from private, federal, and other sources.

“We must work together to ensure that we all benefit from healthy watershed forests, regardless of land ownership,” added Lisa Ferentinos, coordinator of the DOFAW Watershed Partnerships Program. “Managing mauka lands as partnerships mean threats are addressed more economically since we pool resources and expertise and reduce redundancy, while increasing the capacity and desire of landowners to protect their forests.”

Board of Land and Natural Resources member and senior scientist and cultural advisor for The Nature Conservancy of Hawai'i Sam ‘Ohu Gon III said, “Hawaiian traditions regard these mauka forests as sacred, and the plants and animals within them as our 'aumakua – our elders and ancestors. Damage and loss of these forests chips away at the foundation of our cultural identity.”

Forests also absorb large amounts of carbon dioxide, reducing Hawai'i’s greenhouse gas emissions. For this reason the Plan includes actions to increase Hawai'i’s ability to withstand hotter and drier trends in climate. 

Studies have shown that since 1990, statewide winter rainfall has been 12 percent lower and continues to decline.

UH Mânoa Professor of Geography Tom Giambelluca noted, “Temperatures are steadily rising, while cloud cover lessens – meaning more water is evaporating. On the ground, this means lower stream flows and less ground water recharge. Forests are a major part of the water equation because they intercept water from the clouds and reduce direct runoff.”

According to James Roumasset, a professor of Economics at UH Mânoa who has conducted studies measuring the forests’ importance to Hawai'i’s economy, Hawai'i’s forests are huge economic assets.

“The Ko'olau mountain forests alone have been valued at up to $14 billion. Groundwater recharge is the primary factor; however the forests are also important for water quality, climate control, biodiversity, and cultural, aesthetic, recreational, and commercial values,” stated Roumasset.

The Rain Follows the Forest plan is available online here:
hawaii.gov/dlnr/chair/pio/nr/2011/The-Rain-Follows-the-Forest.pdf

Photographic images of Hawai'i watershed areas can be downloaded from: http://hawaii.gov/dlnr/dofaw/nars/the-rain-follows-the-forest

Governor Neil Abercrombie and State Department of Human Services (DHS) Director Patricia McManaman visited residents returning to their newly-renovated apartments at the Towers at Kuhio Park, formerly known as Kuhio Park Terrace. The two-year renovation project began on May 19, 2011.

The $135 million project to renovate Hawai'i’s largest public housing project, originally built in 1963, is the first public-private partnership between the Hawai'i Public Housing Authority (HPHA) and a private developer to transform public housing. The Michaels Development Company and local development partner, The Vitus Group, expect to complete the renovation of the two high-rise towers by December 2013. Renovations to Tower A is half-way done and residents have or are in the process of moving into 144 out of its 270 units.

“With our private partners, we are moving quickly to renovate public housing units that have been vacant and rehabilitate occupied units in desperate need of repair,” said Governor Abercrombie. “We are investing in the people of Hawai'i by ensuring that families have safe and dignified housing as they move toward self-sufficiency.”

Each of the two high-rise towers at the Kuhio Park property, which together include 555 units, is expected to be renovated in 12 months. During renovations, residents moved into an “on-site hotel” at Tower B. Renovations include reconfigured ground floors, the creation of new space for resident activities, social services, management offices and enlarged laundry facilities.

“Safe and dignified housing is essential for all of Hawai'i’s people, regardless of their economic status,” said DHS Director McManaman. “We are partnering with the private sector to expand the state’s stock of workforce housing and provide a comprehensive array of social services to rebuild the state’s safety net.”

In November 2010, HPHA agreed to sell to KPT Towers, 1 LLC—a partnership between Michaels Development, Vitus Development, and tax credit investors AEGON USA Realty Advisors—the two high-rise towers and low-rise apartments that make up the 748-unit Kuhio Park Terrace project in Kalihi. HPHA also leased the underlying land to KPT Towers, 1 LLC, for 65 years. In exchange for the sale of the structures, the private development team will renovate, manage, and maintain the units.

Monika Mordasini, Vice President of Development for The Michaels Development Company, said, “Once restored, The Towers at Kuhio Park will serve as an attractive, affordable housing resource for future generations and will be a source of pride for the community.”

Funding for The Towers at Kuhio Park includes a combination of:

• $66 million in tax-exempt bonds issued by the State of Hawai'i
• $47 million from AEGON USA Realty Advisors through the Low-Income Housing Tax Credit equity program, which generates private capital investment to support the development and the rehabilitation of affordable rental housing
• $50.4 million in loans from HPHA to fund major system renovations and for the acquisition of the improvements
• $32.35 million in construction and permanent financing from Citibank
• $181,134 in a tax credit fee rebate from HHFDC

Towers at Kuhio Park is a state housing project that rents to low-income tenants at or below 60% of the Area Median Income for 30 years—pursuant to a Regulatory Agreement entered into with HHFDC. Of the 555 units, 347 units are designated as public housing units, 150 units are Project Based Section 8, and the remaining 58 units have rents set at 40% of the area median income. The property is also subject to affordability restrictions for a 40-year period pursuant to a Regulatory Agreement with HPHA, as well as the Declaration of Restrictive Covenants and Section 8 Housing Assistance Payment Contract which provide Public Housing and Project Based Section 8 rental subsidy.

The State of Hawai'i has a comprehensive strategy for expanding available workforce housing which includes: repairing and building public housing units such as the Towers and Kuhio Park; below-market rentals such as Hale Wai Vista II that opened in Wai'anae last week; and affordable homeownership opportunities such as the Holomua development in Honolulu that will break ground tomorrow, October 6, 2011. The state and private sector are coordinating to nurture vibrant, affordable communities across the islands.

September 14, 2011

Wai'anae – The state Department of Education (DOE) is committing $6 million over the next three years for early childhood education as a part of its Race to the Top initiatives, Governor Neil Abercrombie announced today. As a result, about 800 additional Hawai'i children in low-income areas will be subsidized to attend preschool.

The subsidies will benefit pre-K students living in the “Zones of School Innovation,” which are the Nanakuli/Wai'anae and Ka'u/Kea'au/Pahoa areas. The DOE is implementing many school improvement initiatives in these “Zones,” which will provide the public with a preview of the transformation that will be possible in all of Hawai'i’s schools.

At a press conference this morning at Wai'anae Early Learning Center – where 14 students are already receiving state subsidies this year – Governor Abercrombie reiterated the importance of investing in Hawai'i’s youngest children.

“The New Day Plan is about investing in the strength of Hawai'i’s people, and supporting our youngest children is one of the best investments we can make,” said Governor Abercrombie. “We are giving more students the opportunity to go to preschool and establishing the foundation for learning.”

About 75 children in the Zones of School Innovation are enrolled in preschools through the Preschool Open Doors, a statewide program administered by PATCH for the state Department of Human Services. With this additional funding, more children in the Zones of School Innovation will be able to participate in the program this year.

Superintendent of Schools Kathryn Matayoshi announced that PATCH is accepting applications for children to receive preschool subsidies. Participating in early childhood programs, such as preschool, helps young children prepare to enter kindergarten.

“Providing our keiki with a seamless transition from pre-K to kindergarten is an invaluable first step in setting the foundation for future academic success,” Superintendent Matayoshi said.

“This is an example of the kind of investment our state needs to ensure our families can afford to send their child to preschool,” said Terry Lock, the Governor’s Coordinator on Early Childhood. “We will be continuing to look for partnerships among government agencies, nonprofits, businesses and other community programs to help our youngest children.”

Families can apply for subsidies for their 3- and 4-year-old via PATCH’s website, www.patchhawaii.org, or by calling 808-791-2130 or 1-800-746-5620.

Honolulu –Governor Neil Abercrombie today announced his appointments for the Native Hawaiian Roll Commission (NHRC).  Established in July when Governor Abercrombie signed Act 195, the NHRC starts the process that will eventually lead to federal recognition of Native Hawaiians.

The Commission is composed of five members, one from each county and one at-large seat.  They are: former Governor John D. Waihe'e (At-Large), Lei Kihoi (Hawai'i), Mahealani Perez-Wendt (Maui), Na'alehu Anthony (O'ahu), and Robin Puanani Danner (Kaua'i).

“These individuals represent various sectors of the Hawaiian community.  Each brings experience, talent, knowledge, and skills that collectively create a broad-based team,” Governor Abercrombie said.  “This team will put together the roll of qualified and interested Native Hawaiians who want to help determine the course of Hawai'i’s indigenous people.”

The Commission will be responsible for preparing and maintaining a roll of qualified Native Hawaiians as defined by the Act. Once its work is completed, the Governor will dissolve the Commission.  The roll is to be used as the basis for participation in the organization of a Native Hawaiian governing entity.  

“Now is the time to unify as a people,” said At-Large Commissioner Waihe'e.  “The belief in our nation building process is being realized.  It has been a long time coming but today we have a renewed sense of confidence for our people and our future.”


About the Native Hawaiian Roll Commissioners:

John D. Waihe'e III is the appointed At-Large commissioner. After serving as Lt. Governor under Governor George Ariyoshi, Waihe'e became the first Native Hawaiian Governor and served two terms from 1986 to 1994.  His administration created the A-plus after-school-care program, restored more than 16,000 acres of public lands to the Hawaiian Home Lands Trust, and created a committee to help define sovereignty.  In 1993, he created the Hawaiian Sovereignty Advisory Commission.  Waihe'e, 65, became active in politics after serving as a delegate on the 1978 Hawai'i State Constitutional Convention where he was instrumental in the creation of the Office of Hawaiian Affairs.  He earned his undergraduate degree at Andrews University in Michigan and was a member of the first graduating class of the William S. Richardson School of Law at the University of Hawai'i.  Waihe'e lives in Honolulu.

Na'alehu Anthony is the appointed O'ahu County commissioner. Anthony is the Chief Executive Director of 'Oiwi TV and the Principal of Paliku Documentary Films.  He is the Director and Executive Producer of 'Aha'i 'Olelo Ola, Hawaiian Language news.  Anthony has produced and directed a number of films including the award winning PBS Documentary of Mau Piailug: The Wayfinder. Anthony, 36, is a member of the Polynesian Voyaging Society and a captain for interisland and coastal sails. He has documented all the major voyages made by Hokule'a.  Anthony holds an MBA and a BA in Hawaiian Studies from UH-Manoa.  He is a 1993 graduate of Kamehameha Schools and lives in Kailua.

Lei Kihoi is the appointed Hawai'i County commissioner. Kihoi has served the Native Hawaiian community in various aspects for over 25 years.  As a former staff attorney for Judge Walter Heen, she wrote and promoted legislation regarding Hawaiian matters.  Kihoi, 66, is a trained counselor in ho'oponopono, mediation and facilitation. She served on a number of boards and organizations including Hui Hanai (Queen Liliuokalani Trust), Polynesian Voyaging Society, and the Native Hawaiian Bar Association.  Kihoi is a graduate of Castle High School.  She earned her BS in Education from UH-Manoa, a MSSW from the University of Wisconsin, Madison; and her law degree from the UH Richardson School of Law.  A beneficiary of the Queen Lili'uokalani Trust, Kihoi is a resident of Kailua-Kona.

Mahealani Perez-Wendt is the appointed Maui County commissioner. Perez-Wendt was the Executive Director of Native Hawaiian Legal Corporation (NHLC) for 32 years before retiring in December 2009.  During her tenure the NHLC litigated landmark cases including Public Access Shoreline Hawai'i v. State, and Waiahole Community Association v. State. Perez-Wendt, 64, was the first Native Hawaiian board member of the Native American Rights Fund.  She has been recognized with a number of awards including Outstanding Hawaiian Woman for Community Service, in 1983; Liberty Bell Award from the Hawai'i State Bar Association in 1990; Kalanianaole Award in 2003 from the Association of Hawaiian Civic Clubs; Native Hawaiian Advocate Award in 2009 from the Council for Native Hawaiian Advancement; and Hawai'i Women Lawyers Lifetime Achievement Award in 2009. Perez-Wendt has published poetry and stories in more than a dozen literary journals and anthologies.  A graduate of the Kamehameha School for Girls, Perez-Wendt lives in Wailuanui, East Maui.


Robin Puanani Danner is the appointed Kaua'i Commissioner. She is the President and Chief Executive Officer of the Council for Native Hawaiian Advancement (CNHA).  Danner has over 20 years of experience working in the field of Native to federal trust responsibilities and government relationships to empower Native peoples.  She has extensive management experience in the nonprofit, for-profit business and government sectors.  She was the Vice-President and Branch Manager of that National Bank of Alaska and is the former North Slope Borough and Tagiugmiullu Nunamiullu Housing Authority County Housing Director and Indian Housing Authority Executive Director. Danner, 48, founded CNHA in 2001 and developed each of its programs including the first statewide Native Loan Fund, the Hawai'i Family Finance Project, which is certified by the U.S. Housing and Urban Development and funded by the U.S. Treasury to promote financial literacy; the Homestead Self Help Program; and the Hawaiian Way Fund, to advance philanthropy in support of culture, knowledge, and language.
Danner resides on her homestead in Anahola.

As a single mother, Nalanijaycel Valez values the support she receives in raising her 8-month-old baby, Alvin Christian, through Healthy Start – a state program that identifies and supports Hawai'i’s most at-risk children and mothers through home visits.

On a recent visit at her home in Kunia, Nalanijaycel tells Shellie Tellis, her Healthy Start Family Support Worker or home visitor, about Alvin playing with his toys and crawling – all signs of healthy development.

“Shellie is like additional information and help I can gain from. She teaches me about the motions of the baby and the meanings of them,” said Nalanijaycel, 30. “I know what my baby is trying to tell me. I don’t need to guess.”

The first three years of a child’s life is incredibly crucial. According to the National Center for Infants, Toddlers, and Families, an infant’s brain will grow substantially by age 3. Billions of cells are produced and hundreds of trillions of synapses or connections are created between the cells.

“Research states that comprehensive evidence-based home visiting programs, like Healthy Start, that focus on the first three years of a child’s life, can prevent child abuse and neglect while promoting positive child-parent relationships and early childhood health and development,” explains Terry Lock, the Governor's Early Childhood Coordinator.

In 2008, Healthy Start served more than 4,000. In 2009, the number of children enrolled dropped to 3,270 children due to budget cuts. The number dwindled even further to 227 in 2010. Although there were 14 to 17 program sites in the state in 2008, there are now only two sites, in Ewa/Wai'anae and Hilo/Puna.

In the 2011 Legislative Session, the State Legislature did not appropriate funds to continue Healthy Start. Reiterating that investing in our youngest children is a priority, Governor Neil Abercrombie and Health Director Loretta Fuddy reallocated $3 million annually for the next two fiscal years for the Healthy Start program to continue. Dollars invested in early childhood create economic development now while also saving money in years to come.

“Every family should have the chance to raise a child in the best condition possible no matter what the circumstance,” Governor Abercrombie said.  “Investing in our youngest children is the best public investment we can make.”

Governor Abercrombie, who was state senator at the time, helped start the program in the 1980s. Healthy Start has received national recognition and served as a model for other states, Canada, and the Philippines.

“The program helps with resources and prevents family stressors,” said Shellie, Nalanijaycel’s home visitor. “It especially helps single moms who are frustrated with babies because they have high expectations. This program allows them to receive information, something they can carry with them for years.”

Nalanijaycel was born in the Philippines and moved to Hawai'i when she was 10 years old. She was raised in Kalihi and graduated from McKinley High School. Nalanijaycel and baby Alvin live with her mother, who takes care of two elderly women in her foster care home.

“My mom helps me take care of Alvin,” said Nalanijaycel. “She has her own way of taking care of my son. I am more modern and she is more old-fashioned. I gain from two experiences [with what I learned from Healthy Start].”

One of the invaluable aspects of Healthy Start is the bond between the family and the home visitor. Not only is Shellie an educator and assistant to Nalanijaycel, but also she is her confidante. She listens, consoles, and advises on concerns that surround Alvin or personal ones that will ultimately affect him.

“Many have credited their worker with changing their lives for the better, that they don’t know how they could have coped without her or him,” said Gail Breakey, Executive Director of Hawai'i Family Support Institute. “The relationship serves as a catalyst and an opportunity to learn new personal and social skills and ways of parenting, which the parent has often not been exposed to before. The supportive, caring relationship is core to the program.”

- Story by Amy Lee

- Pictures by Erin Lau

Governor Abercrombie's New Day Speech from Gov Abercrombie on Vimeo.

The Governor's public remarks are below.

To download a copy of the New Day Status Report, "When Hawaii Works, Hawaii Wins," click here.

To download a copy of the Executive Budget Adjustments for FY 2012 and FY 2013 Pursuant to Section 97 of Act 164, SLH 2011, click here.

A New Day Status Report to the People of Hawai'i

Aloha everyone.

In my state of the state address seven months ago, I pledged to always give you an honest account of the state of our government. At that time I said that our canoe—our beloved Hawai'i—was on the brink of capsizing.

At the time, we faced an $844 million deficit over the biennium. That grew and would later was recalculated to $1.2 billion.  Of that deficit, $214 million had to be closed over the first seven months of our term largely due to the previous Administration’s decision to withhold refunds from taxpayers.

Our community was divided in the wake of arguments over public school furloughs and civil unions. Our government was paralyzed by years of gridlock. In March, Japan was confronted with a devastating earthquake and tsunami that caused ripples of economic anxiety here in Hawai'i.

With the understanding of the Legislature, support of public employees and extensive community dialogue we faced these issues and we’re overcoming them.

I am happy to report that because of decisive action and a willingness among many to cooperate, our canoe did not huli. Instead, in the first half of 2011, we stabilized our financial situation by making prudent use of the resources we had and making tough decisions with a constant eye on the future. From December of last year to the end of this fiscal year on June 30, 2011, we overcame a $214 million deficit, and for the first time in three years, I can report to you that we are entering the new fiscal year in the black.

We have prepared and are now implementing a comprehensive action plan to meet our current and long-term challenges. We will do this within the budget we have. Our Administration has gone through a detailed process examining all government activities.

With tight fiscal management of our bond issues and a significant cost savings on our health plans for government employees, we are reorganizing and retooling, while minimizing the negative impact on public services.

We ended Furlough Fridays and restored services to the public. Led by the far-sighted example of members of the Hawai'i Government Employees Association who agreed to pay and benefit adjustments, we are on the way to balancing the budget. It is imperative for the fiscal stability of the state and the very survival of our pension and health benefit plans that similar clear-eyed understanding be incorporated in all other contracts.

The Gathering Storm

We have addressed the fiscal crisis we inherited. But we have serious work yet to do. We have people in need of basic services, children to educate, and jobs to create.

And the hardest part has yet to be faced. There is an undeniable storm gathering on the horizon. It is just inside our field of vision, but far enough away that it is tempting to ignore it as we have for so many years.

There are five elements to this storm. Each one alone can upend the economic foundation of our islands and the progress we have made. Each one alone can tear our social and cultural fabric to shreds.

But each one can be overcome with fidelity to sound fiscal policy, determined action, and by working together.

First, we must face the state’s long-term financial responsibilities without flinching. Our unfunded liability is $8 billion for our employee retirement fund and $14 billion for government medical benefits. Our per capita debt is the third highest in the nation and this fact is relentlessly eroding our credit worthiness. The days of ignoring this threat are over. Everything that we have worked for in collective bargaining on pensions and benefits, along with the basic services that taxpayers expect, is on the verge of being lost. I’m not so interested in assessing blame as I am in setting a firm course of correction.

The second part of the storm is the soaring cost of healthcare. As healthcare takes more and more out of our paychecks, there are fewer resources available for other priorities. For government, that means less money for services. For businesses, that means less money for salaries, benefits, and profit. Simply put, healthcare costs will swallow our economy and all the jobs and savings that go with it. We have to act immediately to contain these costs and keep our people healthy through prevention and good public health practices.

The third threat is our over reliance on outside imports for energy and food. The political and economic instabilities throughout the world today should cause each of us to ask if we are doing enough to make Hawai'i more self-sufficient. Our island resources are abundant, and yet we continue to be reliant on others for oil and food. To survive, we must make progress in expanding agricultural activities and deploying renewable resources, but we must keep the pressure on ourselves to move with urgency. These sustainable activities are the basis of a new economy that balances environmental stewardship and job growth.

The fourth threat I see is a human capital deficit. We pay a steep price when we fail to invest in our children and in programs that prevent people from sliding into despair. That price will continue to rise unless we change course. We have to provide better education and support for all our families, beginning in early childhood, and create the jobs that will keep our children here at home.

The fifth element of the storm is coming from Washington, D.C. We cannot ignore the fact that the rancor and debate in the United States Capitol could have a profound negative impact on the future of our islands. Potential cuts to Medicaid and defense spending could badly damage our economy. And we continue to bear all of the burden of the federal government’s failure to address its responsibility to Compact migrants.

These storm threats are real. They are threats that we cannot run from. These common foes know no special interests or political party. All the arguments and accusations of today will drown in their destructive force.

We need to be about breaking up this storm front. We need to be about reversing its course and blunting its impact. By clearing away the fiscal wreckage of the last Administration, we’ve made a strong start.

The transition to a New Day is underway. In erasing the deficit we were handed in December, we’ve made the pivot to the positive side of the ledger. We are rebounding.

Three Goals

Our New Day Plan outlines three waves of change therefore that will allow us to weather the storm ahead; three waves that run counter to the strong currents of the status quo:

1. Create good jobs and grow a new, sustainable economy
2. Invest in people, beginning with our youngest children
3. Transform state government into an efficient enterprise

Our first task is immediate job growth as we shift Hawai'i’s economy to a sustainable foundation. We are creating good jobs for people so they can do more than just make ends meet. We are already starting to see signs of improvement, and we will continue pressing ahead with our $1.4 billion investment in New Day Work Projects. These are public works projects that will put money into the economy by modernizing our public facilities, improving energy efficiency, upgrading irrigation systems for agriculture, and bringing our transportation infrastructure into the 21st Century. At the same time, we are building the foundation for our next economic boon by capturing our own renewable energy and developing ultra-high speed Internet capabilities to give Hawai'i the competitive edge that we need. And by entering into public-private partnerships to make improvements on public lands, we will be building much needed housing, reinvigorating public spaces, increasing opportunities for growing our own food, and creating sustainable communities across our islands. We will do this while improving the business climate for our entrepreneurs and small businesses.

Our second charge is to invest in the education, skills, and wellbeing of Hawai'i’s people. These investments will earn dividends in both the short- and long-run.  More importantly, these investments give us the intellectual, social, and cultural base to fuel our economy for years to come. We are using what resources our budget allows and seeking new resources.  We are building private-public partnerships in early childhood, healthcare technology, housing, preventative social services, and other long term priorities that we have ignored. We are moving on Race to the Top initiatives to improve our public schools. We are making progress on homelessness, and we are changing our approach to public safety so that we can bring our prisoners home and ultimately reduce the number of people who end up in prison or on the streets. Taking action now will make a big difference later.

Our third focus is to transform state government into an efficient and effective enterprise. With reorganization, we are conducting government as the professional enterprise it must be to meet the public need. My Budget Director, Kalbert Young, will function as the state’s Chief Financial Officer; and the State’s Comptroller, Bruce Coppa, will be the state’s Chief Operations Officer.  We will continue rehabilitating our fiscal health by following a financial plan that will recapitalize our reserves, pay down our debts, and carefully manage our cash flow. We are professionalizing our human resources management to bring out the best from our outstanding public workforce. Our new Chief Information Officer, Sanjeev “Sonny” Bhagowalia, is transforming government services and providing taxpayers with the best value for their dollar.

We are constantly uncovering old problems and but we’re addressing them with fresh ideas and a determination to do what is necessary. One need only look at Mayor Wright public housing, where residents went without hot water for seven years until our Administration took over and fixed the situation. We are ending outdated policies, and we’re reorganizing functions across departments.

Our Administration was tasked with finding an additional $50 million in savings in order to balance our budget. Because of smarter and better fiscal management, we will do this with minimum impact on our public employees and state programs.

Against the Status Quo

Charting a new course is difficult and unnerving, but we cannot sustain a status quo ruled by doubt, or distrust, or selfishness, or fear. The status quo insists that we conform to the way things have always been. It is obsessed with illusory short-term gain at the expense of long-term stability. It favors the few. It outflanks the middle class, and it marginalizes those who need help the most. It questions and casts doubt upon new ideas. It stifles creativity and limits opportunity.

We have become accustomed to fiercely protecting whatever we have today regardless of the needs of tomorrow. When we retreat to the status quo, we relinquish control over our own destiny. The difference today is that we no longer have the luxury of time. Years of putting off tough decisions have finally caught up with us. Our liabilities are looming and the bill is now due.

Today, roughly 90 percent of the state’s $5.7 billion general fund budget is spent on services that are either mandated or at the very core of government. Most of it goes to public education; caring for the elderly, the needy and the sick; and paying the interest on our debt. Our population is aging, our young people are leaving and everything is getting more expensive. We can’t cut our way to a solution. Under the previous administration, despite draconian cuts to services and rhetoric about government waste, the state budget still grew by roughly 5 percent per year. We have no choice but to change our ways.

Sometimes that change will be frustrating, especially as some will continue to deny the realities we must face.

The answer is a steady commitment to the productive and constructive action I’ve outlined. Positive change is already under way. We are moving with confidence to build a New Day in Hawai'i.

I began this report saying you were going to get an honest account of what we face and what we’re doing. As recently as this Sunday, everyone has seen how we’re overcoming homelessness and giving people hope for the future. We’re doing the same on all fronts.

What we need now is faith and trust in ourselves. We can do it. We are doing it. And we’re succeeding.

Imua Hawai'i!

It’s estimated that 80 to 90 percent of our food is imported.  This is an alarming rate for our island state because any disruption to food supply lines would leave us with less than a week of food.

Governor Neil Abercrombie believes it’s time for an Agricultural Renaissance in Hawai'i.  A major part of that renaissance is raising the demand for local food and supporting individual participation in this movement.

Jacqueline Kozak of the Hawai'i Invasive Species Council is an active participant who is committed to seeing more home gardens throughout the state.  She inspired Governor Abercrombie and his partner Dr. Nancie Caraway to also make that commitment.

Now the Governor and Dr. Caraway enjoy getting fresh herbs from their organic garden outside of their home, Hale Ki’aina, on the grounds of Washington Place.

The New Day Garden project was made possible through public-private partnerships and the helping hands of Kokua Hawai'i Foundation's 'AINA In Schools program, students from the Aina Hoola o Mailikukahi youth conference on food sustainability, and the Kainalu Elementary School’s garden club.

“The New Day Garden is an example of how we can all make a difference from our own backyard,” said Ms. Kozak.  “Everyone can participate in growing food which helps to reduce our dependency on imports and the risk of introducing invasive species on cargo that could end up harming our agriculture and natural resources.  Plus, eating fresh, locally-sourced foods is good for our health and the economy.”

In the summer months, schools go on break. For many children in Hawai‘i, that means they stop eating the regular meals they’re used to during the school year.

A program funded by the federal government allowed 60 Hawai‘i public schools to keep serving free breakfast and lunch this summer. All children 18 years old and younger, even those not enrolled in that particular school, are able to have a free meal at these schools under the Seamless Summer Option program.

At Kaewai Elementary School in Kalihi, students get to eat some of their favorite school meals, like pizza for Victoriana Vili, an incoming fifth grader. If it were up to incoming fourth grader, Steven Houston, he would have ice cream on the menu.

“A hungry child cannot learn,” said Sharon Egi, School Food Services Branch Supervisor, Windward, who estimates that about 60,000 children benefitted from this program this summer. “We want to encourage them to come eat breakfast and lunch because I really believe it does help in the learning process.”

Schools participating in the free summer meal program must have at least 50 percent of their regular enrolled students who qualify for free or reduced-price meals. The Hawai‘i Department of Education has participated in this program for years now and, pending future funding, plans to continue it next summer.

“A lot of our students at Kaewai are in foster care and come from troubled backgrounds,” said Kaewai Elementary School Principal Bert Carter. “I always think that eating meals is a social activity and a lot of times, our students don’t eat as a family unit and this gives them an opportunity to be a family.”

At Kaewai Elementary, students could also attend Extended Learning Opportunities program during summer months that focuses on English language arts and math. As students go back to school across the islands for the 2011 to 2012 school year, Hawai'i’s education leaders – Governor Neil Abercrombie, Superintendent Kathryn Matayoshi and Board of Education Chairman Don Horner – are all aligned to make it a great school year.

- Video by Erin Lau