WORKFORCE DEVELOPMENT

This year, the Lingle-Aiona Administration will introduce a variety of workforce development initiatives designed to diversify and strengthen Hawaii’s economy by: helping Hawaii residents go back to school to get career training and advanced education, providing resources and facilities to entrepreneurs, and creating business opportunities for artists and musicians.

Lifelong Learning

Learning does not end on graduation day.  The challenge, however, is finding the time and money to continue the educational process after entering the workplace.  To help Hawaii’s workers engage in opportunities for lifelong learning, the Administration will re-introduce legislation allowing individuals to set-aside pre-tax dollars in an employer-matched “lifelong learning account” for education and training.  Individuals who make contributions to such accounts may claim a tax credit of up to $500 for the total contribution.  Employers making matching contributions may claim a tax credit of up to $500 per employee.

These portable “lifelong learning” accounts, similar to a 401(k), will give Hawaii workers the motivation and support they need to upgrade their skills and improve future career opportunities.  In addition to empowering Hawaii’s workers, this legislation will strengthen our economy and make Hawaii more competitive in the global, 21st century marketplace.

Investing in Hawaii

As an individual’s education and skill-level grows, so does the possibility for innovation and entrepreneurship.  Many cities across the country have taken steps to support its entrepreneurs by increasing the availability of venture capital.  Venture capital is funding invested by professionals who specialize in supporting individuals with innovative business ideas that have a strong potential for growth.

Following successful models in Boston, San Diego, and Seattle, the Administration will introduce legislation again this year for an allocation from Hawaii’s Employee Retirement System (ERS) of $100 million for investment in venture capital funds that support local entrepreneurs.  Given that the ERS already invests $400 million of its assets in venture capital, it makes sense that a portion of this money be used to support entrepreneurs here at home.

Music & Entertainment Learning Experience (MELE)

A strong economy is a diverse economy that provides individuals with opportunities for growth in various sectors.  This past fall, Honolulu Community College (HCC), in conjunction with Belmont University in Nashville, began offering two courses in music business to support Hawaii’s talented musicians and performers.  Music is one of Hawaii’s greatest treasures; by investing in our young artists through music education and training, we ensure that this culturally and economically important asset will be part of Hawaii’s future.

This year, the Administration will build on the successful effort at HCC by providing $4.8 million in funding for the expansion of course offerings in music business.  These courses provide students with the basic music business and production curriculum needed for entry-level work in the music industry.  In addition, this funding will support the construction and design of a state-of-the-art music studio to further enhance the learning experience. 

To expand opportunities for economic growth in creative industries, the Administration will introduce legislation providing $500,000 to establish a creative center “incubator” located on Oahu.  This incubator will provide young artists, filmmakers, and others seeking work in the creative sector with comprehensive business support services in art, digital media, and publishing.  With the right computer resources, production space, mentors, and partnerships, young artists can transform raw ideas and natural talent into new products and services that will grow Hawaii’s economy.

Rapid Response Training

The potential growth of Hawaii’s economy is limited because we have a shortage of skilled workers readily available to new and existing companies interested in doing business or expanding business in the State.  This problem is not unique to Hawaii; some states have addressed the issue by developing custom training programs through their community college systems that have the flexibility and capacity to train and educate workers in a short time frame.

To strengthen efforts already being conducted by the University of Hawaii community college system, the Administration will introduce legislation creating a revolving fund to support a “rapid response” training program that improves the skills of Hawaii’s workers and supports Hawaii business.   In collaboration with the workforce development community, county economic development boards, and business and industry associations, the Rapid Response Program will identify industry-specific needs; secure funding from the federal government and private sector;  and contract with various entities that have the capacity to train workers rapidly.

Kama‘aina Come Program

Some of Hawaii’s most talented individuals have left the islands for school or work opportunities on the mainland or in other parts of the world.  To address this issue, the Department of Business, Economic Development, and Tourism is partnering with the Hawaii Island Economic Development Board in a state-wide effort to recruit kama‘aina back to the islands for jobs.  Through the “Kama‘aina Come Home Program,” public and private sector officials are collaborating to identify opportunities to network and recruit kama‘aina at conferences, tradeshows, and other business events around the globe.  The Administration strongly supports a continuation of this effort in 2008.

Transforming Ideas into Reality

The formation of a strong and diverse economy often begins with the innovative work done by university students and faculty.  Many states have created mechanisms to ensure university innovation is commercialized and, therefore, contributing to the State’s technology-based economy.  At the University of Hawaii, the Office of Technology Transfer and Economic Development (OTTED) is charged with managing and marketing the commercialization of University inventions with the goal of securing license deals and spinning off start-up companies.

To accelerate this effort, the Administration will provide $100,000 in funding to support a partnership with a private sector entity experienced in transforming innovative ideas into products ready for commercialization.  This effort will ensure that Hawaii’s best and brightest have the opportunities to develop their work, contribute to the economy, and catapult academic research into real-world opportunities.