“Calvin Say Image”

Honored guests, members, ladies and gentlemen. Aloha and welcome.

The 22nd session of the Hawaii State Legislature convenes today with a mandate from the people for change. Our families and communities are being tested in ways that question our resolve and our ability to meet the challenges before us. All around us, the world seems on the brink of renewed chaos — the international scene threatens war, the American economy is faltering. More than 35 states, including our own, face wrenching budget decisions.

The optimism of many of us has eroded. Our seniors are forced to keep working. Our most important institutions have been wracked by scandal. Corporate officers face indictment for fraud and theft, leaving their companies bankrupt and their employees facing ruin. Politicians have betrayed our trust seeking personal gain at the community’s expense. Our challenges appear far more difficult and even dangerous than they were just two years ago.

In this time of turmoil, Hawaii voters made an historic decision. We elected the first woman as governor in our state’s history. The fact that she is also a Republican is not my concern. She is our governor — we need each other’s help, and we must find a way to work together to meet the challenges of our time.

I speak to you today, not just as an elected leader, but as a citizen and a small businessman, a neighbor and a friend. We must not give up hope. The promise lies within each of us to create a better future for our children, but to do that, we must make tough decisions.

First of all we must begin by recognizing that the days of asking, “What’s in it for me?” are over. We must forge a new partnership where each of us who is able carries a fair share of the load. We must find a way to continue to protect those among us who cannot help themselves.

Many citizens have lost faith in government to do the right thing. We can begin to restore their trust by putting government on the same kind of performance standards that we are now asking of our children in school.

That means that government sets objectives that are measurable, specific and achievable. When a government agency says a program will create better-paying jobs, people have a right to expect that promise to be kept.

This session we will mandate new performance standards that ensure politicians and government agencies do not make promises they cannot keep. To help us achieve this goal, the auditor’s watchdog authority will be expanded.

We will make sure that our own house is in order. Campaign finance reform will be a priority this session. Corporations and special interest groups cannot be allowed to use their campaign contributions to unduly influence the people’s business. And politicians who violate the people’s trust must know the consequences of that violation will be severe.

We will put more decision-making power into the hands of the people we serve. Our communities have a right to a bigger say in how their schools are run. But at the same time we should be careful and not waste our time trying to reinvent the wheel. We can learn from the experience of other communities where district school boards were tried and failed.

These experiments, which looked so good at the start, failed because they did not give the schools the one thing they need — accountability. And we already know that accountability is a significant problem for our schools. Just last week, a national survey ranked Hawaii schools as ninth lowest in the nation in terms of accountability.

It should be clear to all of us by now — we can no longer accept status quo schools. We will propose significant reforms in school administration. These reforms will give our schools greater authority and flexibility, help them to obtain needed resources, and build and manage community support. Most important of all, these reforms will provide new standards for accountability.

The state system of school repair and maintenance is woefully inadequate. This is one critical area where community-based decisions are the right way. Local schools know what needs to be fixed. Government should provide the resources and then get out of the way. We will pass legislation to allow schools to make their own contract decisions and speed up repair and maintenance.

Parents and community members need a greater voice in the operation of their neighborhood schools. We will propose the establishment of a community-based school board initiative. Imagine what we can do if teachers, parents, administrators and students set their goals together. Passing a standardized test is not enough. We must teach our kids how to learn, and help them learn how to think.

Sept. 11 taught us a lesson we can never forget — dependence on one industry or one resource is a dependence we can no longer afford. We must diversify our economic base and lessen our dependence on outside resources. When our nation was attacked, Hawaii’s economic engine took a direct hit. There are hopeful signs of recovery, and our hard work in the Special Session has produced some results, but Hawaii’s economy has not fully recovered. If our nation goes to war, defense spending in Hawaii will decrease, That is a real possibility and it must strengthen our resolve to diversify Hawaii’s job base.

We must act to help local business improve job retention. Existing small businesses are the backbone of our economy. We must help them grow. To help in this effort, we will propose a targeted job creation tax initiative. This measure will help diversify our industries, and encourage outside businesses to bring new jobs to Hawaii.

Tax incentives can be a vital part of an overall economic strategy, but the people and companies who use them must also be held to a standard. New credit programs must undergo regular financial checkups and be held accountable for results. The Tax Review Commission’s recent report to the Legislature is right on track. We believe its recommendations are a solid base on which to build tax incentives for our New Economy.

It is important that all of us understand one thing — economic development is not a business agenda, it is a way to accomplish Hawaii’s social goals:

*Quality, affordable health care for the sick and elderly;

*A healthy environment for our children to grow up in;

*Higher-paying jobs to help support our families;

*Social equality for all of Hawaii’s citizens; and

*The preservation of values built into our host culture.

The ultimate goal of economic development is to benefit our people. We must shape our economic development in a way that’s right for us, not special interests or the very wealthy.

Today in our nation’s capital, old thinking rules the administration’s policies. These worn-out ideas propose enormous tax cuts for the very rich while the national deficit begins climbing toward historic highs. Once again, we are borrowing on our children’s future. These same tired ideas come from a president who believes the elimination of dividend taxes will ignite the next economic boom.

These measures are sure to bring happy days to the White House, but they will not put food on our tables or fix a school’s leaky roof.

What the Republican administration in Washington fails to realize is our critical need for a comprehensive domestic strategy. Even people who worked for this administration say it has no domestic policy. Instead, it focuses on its foreign affairs agenda and manages the home front with public relations tactics and Republican programs that benefit the wealthy.

Let’s look at the facts. The latest analysis of Federal Reserve data shows that 85 percent of the stocks in this country are owned by the very rich. The president says if we help these people, the rest of us will benefit later on. Twenty years ago, they called that “trickle-down” economics. Given our current budget situation, we may
not have enough time to wait for the trickle.

We believe we have a better idea — an idea that focuses on our future here in Hawaii, a future that is built by increasing the knowledge base of our economy through research, education, skills and technical innovation. We believe the most effective way of managing this future is through partnerships between government and local enterprises.

Government will do a better job if it engages in these partnerships as a facilitator and not a regulator. Our businesses, schools and non-profits need a significant infusion of technology to compete in this knowledge-based economy. We cannot accomplish this alone. Together, with the help of private partnerships, we can achieve greater efficiency and measurable results.

In 1881, King David Kalakaua and his Attorney General turned to one of the most brilliant minds in history. The King asked a man named Edison to study the possibility of using power from Hawaii’s volcanoes to produce electricity to light Hawaii’s homes. It was more than 80 years after the King’s discussion with Edison that Hawaii began geothermal exploration.

Today, geothermal energy provides almost 20 percent of energy needs on the Island of Hawaii. And still, there are small and vocal groups that would like to turn back the clock. We can no longer afford to ignore an energy source that is in our own backyard.

The time has come to face a hard truth about Hawaii’s energy needs — imported oil supplies 90 percent of Hawaii’s energy. No place else in the United States is so critically dependent on imported oil. Unlike the mainland, Hawaii cannot turn to neighboring states to make up for any temporary or permanent energy shortages.

Unlike the mainland, imported oil is the single thread that can completely unravel Hawaii’s future.

Geothermal can be a bigger part of our energy future, but so must other alternative energy sources. We are blessed with abundant sunlight, but few of Hawaii government buildings take advantage of solar power. We can do better. This year, we will extend renewable energy tax credits because we know they work. And we will begin a program to mandate the conversion of public buildings to solar energy resources.

Just this month, Hawaiian Electric announced a promising new program with a $10 million investment in alternative energy development. This is a promising first step. But we can do more. We will speed up this process by seeking a statewide energy audit.

The people of Hawaii are counting on you, Gov. Lingle, to lay out a compelling agenda in your State of the State address. But even your most avid supporters concede that dramatic breakthroughs may be difficult. I have great hopes for the governor. And I have great hopes for Hawaii’s lawmakers. Working together, we can meet the challenges of our time.

I also appreciate our new governor’s efforts to help with the issue of interim payment of revenues to the Office of Hawaiian Affairs. However, we have found a way to resolve this issue expeditiously without having to go further through the legislative process. Over the last several weeks, the Chair of OHA, together with legal counsel, and the Chair and Vice-chair of the Hawaiian Affairs Committee, worked out a solution.

Haunani Apoliona, Ezra Kanoho, Sol Kahoohalahala, through your efforts our obligations to the Hawaiian people will be fulfilled. $10.3 million in deferred payment will be made.

Members, on your desk is a small gift from me. It is a symbol of what we can accomplish together. The bamboo plant is an ancient Chinese symbol of strength and good fortune The empty center of the stem represents a virtuous person with an open mind. The bamboo thrives because it is flexible. I hope we can be like this too — flexible, but strong.

Aloha and mahalo.

“Calvin Say Image”

Honored guests, members, ladies and gentlemen. Aloha and welcome.

The 22nd session of the Hawaii State Legislature convenes today with a mandate from the people for change. Our families and communities are being tested in ways that question our resolve and our ability to meet the challenges before us. All around us, the world seems on the brink of renewed chaos — the international scene threatens war, the American economy is faltering. More than 35 states, including our own, face wrenching budget decisions.

The optimism of many of us has eroded. Our seniors are forced to keep working. Our most important institutions have been wracked by scandal. Corporate officers face indictment for fraud and theft, leaving their companies bankrupt and their employees facing ruin. Politicians have betrayed our trust seeking personal gain at the community’s expense. Our challenges appear far more difficult and even dangerous than they were just two years ago.

In this time of turmoil, Hawaii voters made an historic decision. We elected the first woman as governor in our state’s history. The fact that she is also a Republican is not my concern. She is our governor — we need each other’s help, and we must find a way to work together to meet the challenges of our time.

I speak to you today, not just as an elected leader, but as a citizen and a small businessman, a neighbor and a friend. We must not give up hope. The promise lies within each of us to create a better future for our children, but to do that, we must make tough decisions.

First of all we must begin by recognizing that the days of asking, “What’s in it for me?” are over. We must forge a new partnership where each of us who is able carries a fair share of the load. We must find a way to continue to protect those among us who cannot help themselves.

Many citizens have lost faith in government to do the right thing. We can begin to restore their trust by putting government on the same kind of performance standards that we are now asking of our children in school.

That means that government sets objectives that are measurable, specific and achievable. When a government agency says a program will create better-paying jobs, people have a right to expect that promise to be kept.

This session we will mandate new performance standards that ensure politicians and government agencies do not make promises they cannot keep. To help us achieve this goal, the auditor’s watchdog authority will be expanded.

We will make sure that our own house is in order. Campaign finance reform will be a priority this session. Corporations and special interest groups cannot be allowed to use their campaign contributions to unduly influence the people’s business. And politicians who violate the people’s trust must know the consequences of that violation will be severe.

We will put more decision-making power into the hands of the people we serve. Our communities have a right to a bigger say in how their schools are run. But at the same time we should be careful and not waste our time trying to reinvent the wheel. We can learn from the experience of other communities where district school boards were tried and failed.

These experiments, which looked so good at the start, failed because they did not give the schools the one thing they need — accountability. And we already know that accountability is a significant problem for our schools. Just last week, a national survey ranked Hawaii schools as ninth lowest in the nation in terms of accountability.

It should be clear to all of us by now — we can no longer accept status quo schools. We will propose significant reforms in school administration. These reforms will give our schools greater authority and flexibility, help them to obtain needed resources, and build and manage community support. Most important of all, these reforms will provide new standards for accountability.

The state system of school repair and maintenance is woefully inadequate. This is one critical area where community-based decisions are the right way. Local schools know what needs to be fixed. Government should provide the resources and then get out of the way. We will pass legislation to allow schools to make their own contract decisions and speed up repair and maintenance.

Parents and community members need a greater voice in the operation of their neighborhood schools. We will propose the establishment of a community-based school board initiative. Imagine what we can do if teachers, parents, administrators and students set their goals together. Passing a standardized test is not enough. We must teach our kids how to learn, and help them learn how to think.

Sept. 11 taught us a lesson we can never forget — dependence on one industry or one resource is a dependence we can no longer afford. We must diversify our economic base and lessen our dependence on outside resources. When our nation was attacked, Hawaii’s economic engine took a direct hit. There are hopeful signs of recovery, and our hard work in the Special Session has produced some results, but Hawaii’s economy has not fully recovered. If our nation goes to war, defense spending in Hawaii will decrease, That is a real possibility and it must strengthen our resolve to diversify Hawaii’s job base.

We must act to help local business improve job retention. Existing small businesses are the backbone of our economy. We must help them grow. To help in this effort, we will propose a targeted job creation tax initiative. This measure will help diversify our industries, and encourage outside businesses to bring new jobs to Hawaii.

Tax incentives can be a vital part of an overall economic strategy, but the people and companies who use them must also be held to a standard. New credit programs must undergo regular financial checkups and be held accountable for results. The Tax Review Commission’s recent report to the Legislature is right on track. We believe its recommendations are a solid base on which to build tax incentives for our New Economy.

It is important that all of us understand one thing — economic development is not a business agenda, it is a way to accomplish Hawaii’s social goals:

*Quality, affordable health care for the sick and elderly;

*A healthy environment for our children to grow up in;

*Higher-paying jobs to help support our families;

*Social equality for all of Hawaii’s citizens; and

*The preservation of values built into our host culture.

The ultimate goal of economic development is to benefit our people. We must shape our economic development in a way that’s right for us, not special interests or the very wealthy.

Today in our nation’s capital, old thinking rules the administration’s policies. These worn-out ideas propose enormous tax cuts for the very rich while the national deficit begins climbing toward historic highs. Once again, we are borrowing on our children’s future. These same tired ideas come from a president who believes the elimination of dividend taxes will ignite the next economic boom.

These measures are sure to bring happy days to the White House, but they will not put food on our tables or fix a school’s leaky roof.

What the Republican administration in Washington fails to realize is our critical need for a comprehensive domestic strategy. Even people who worked for this administration say it has no domestic policy. Instead, it focuses on its foreign affairs agenda and manages the home front with public relations tactics and Republican programs that benefit the wealthy.

Let’s look at the facts. The latest analysis of Federal Reserve data shows that 85 percent of the stocks in this country are owned by the very rich. The president says if we help these people, the rest of us will benefit later on. Twenty years ago, they called that “trickle-down” economics. Given our current budget situation, we may
not have enough time to wait for the trickle.

We believe we have a better idea — an idea that focuses on our future here in Hawaii, a future that is built by increasing the knowledge base of our economy through research, education, skills and technical innovation. We believe the most effective way of managing this future is through partnerships between government and local enterprises.

Government will do a better job if it engages in these partnerships as a facilitator and not a regulator. Our businesses, schools and non-profits need a significant infusion of technology to compete in this knowledge-based economy. We cannot accomplish this alone. Together, with the help of private partnerships, we can achieve greater efficiency and measurable results.

In 1881, King David Kalakaua and his Attorney General turned to one of the most brilliant minds in history. The King asked a man named Edison to study the possibility of using power from Hawaii’s volcanoes to produce electricity to light Hawaii’s homes. It was more than 80 years after the King’s discussion with Edison that Hawaii began geothermal exploration.

Today, geothermal energy provides almost 20 percent of energy needs on the Island of Hawaii. And still, there are small and vocal groups that would like to turn back the clock. We can no longer afford to ignore an energy source that is in our own backyard.

The time has come to face a hard truth about Hawaii’s energy needs — imported oil supplies 90 percent of Hawaii’s energy. No place else in the United States is so critically dependent on imported oil. Unlike the mainland, Hawaii cannot turn to neighboring states to make up for any temporary or permanent energy shortages.

Unlike the mainland, imported oil is the single thread that can completely unravel Hawaii’s future.

Geothermal can be a bigger part of our energy future, but so must other alternative energy sources. We are blessed with abundant sunlight, but few of Hawaii government buildings take advantage of solar power. We can do better. This year, we will extend renewable energy tax credits because we know they work. And we will begin a program to mandate the conversion of public buildings to solar energy resources.

Just this month, Hawaiian Electric announced a promising new program with a $10 million investment in alternative energy development. This is a promising first step. But we can do more. We will speed up this process by seeking a statewide energy audit.

The people of Hawaii are counting on you, Gov. Lingle, to lay out a compelling agenda in your State of the State address. But even your most avid supporters concede that dramatic breakthroughs may be difficult. I have great hopes for the governor. And I have great hopes for Hawaii’s lawmakers. Working together, we can meet the challenges of our time.

I also appreciate our new governor’s efforts to help with the issue of interim payment of revenues to the Office of Hawaiian Affairs. However, we have found a way to resolve this issue expeditiously without having to go further through the legislative process. Over the last several weeks, the Chair of OHA, together with legal counsel, and the Chair and Vice-chair of the Hawaiian Affairs Committee, worked out a solution.

Haunani Apoliona, Ezra Kanoho, Sol Kahoohalahala, through your efforts our obligations to the Hawaiian people will be fulfilled. $10.3 million in deferred payment will be made.

Members, on your desk is a small gift from me. It is a symbol of what we can accomplish together. The bamboo plant is an ancient Chinese symbol of strength and good fortune The empty center of the stem represents a virtuous person with an open mind. The bamboo thrives because it is flexible. I hope we can be like this too — flexible, but strong.

Aloha and mahalo.

“Galen Fox Image”

Aloha Kakahiaka. It’s a beautiful morning. Isn’t it a beautiful day in Hawaii nei?

Some of you, like me, remember when Hawaii was a territory. You remember when we were second class citizens, left out of the promise America offered residents of the 48 states. Then one bright morning, the door opened, and the nation welcomed us in. Hawaii became a state. What a beautiful day.

Hawaii was then an exciting place filled with hope. The last territorial Legislature glowed from the creative sparks produced by rubbing new ideas against old. Republicans and Democrats were all involved, a Republican governor, a Democratic Legislature, together generating change that enlarged Hawaii’s role in the nation, and embraced our entire population.

Now, today, such a beautiful day has come again. We have a new governor. The windows have been thrown open. The fresh breeze of change is blowing through our collective home. Once again, after an absence of 40 years, no matter what your party, Hawaii has a place for you. Fifty-one representatives feel the joy that comes from being part of solutions that involve Republicans, Democrats, and all Hawaii standing together.

The solutions we crave are those that help people find jobs. All of us want more jobs for Hawaii’s people. It’s the lack of jobs that is forcing families apart, and sending our friends to the mainland. Most transplanted ex-Hawaii residents would rather be home, if they could make a decent living here. We need jobs.

All of us want not just jobs, but better paying jobs for Hawaii’s people. The “price of paradise” is a real problem here. Hawaii’s cost of living is 22 percent above the national average; only the Bay Area is more expensive. Yet our wages are barely above the national average. We have an income gap that makes it hard to live here.

To have better paying jobs, we need to take Hawaii into the knowledge-based economy. For that, Hawaii’s people need a good public education system. Reforming public education has to be one of this Legislature’s top priorities. To seize our future, we must improve public education now — we need action, not studies.

The road ahead remains difficult. But we know that real change comes from Republicans and Democrats, business, labor, and government, working side-by-side to get the job done.

History has led us to this remarkable January 2003 morning. At the dawn of the territorial era, 100 years ago, James Dole brought the pineapple industry here. It was the last time Hawaii, on its own, generated a major new industry. Pearl Harbor, World War II, Korea, and Vietnam gave us the defense industry, a boon to our economy that owed little to our own initiative. And so it was with tourism, which grew Hawaii through statehood’s first three decades. Tourism thrived because of outside forces — the jet plane, the jumbo jet, mainlanders discovering the neighbor islands, and finally Japanese tourism and investment. It all came so easily. We were freed from the discipline of having to work together to make our own future.

Since the Japanese bubble burst in 1990, we have been searching for a new path to prosperity. After 1990, tourism stopped growing. After 1990, Hawaii family income dropped 15 percent in relation to the rest of the country, from 21 percent higher to only 6 percent higher. After 1990, while state government employment jumped 15 percent and our population grew by 9 percent, private sector job growth stopped-increasing by just 3 percent. After 1990, Hawaii’s poverty rate rose faster than that of any other state, and a higher share of Hawaii’s population left for other states than did the population of any other state.

Now we stand at the beginning of a new day. We are filled with hope. We know that no outside force or event is going to bless us the way Pacific wars and the jet plane helped us earlier. We know we are going to have to do it ourselves. And we will work hard to shape our own destiny. We will find the common ground that unites us, and for the benefit of Hawaii’s people, we will embrace change. Let’s do it, let’s do it together.

Mahalo.

“Galen Fox Image”

Aloha Kakahiaka. It’s a beautiful morning. Isn’t it a beautiful day in Hawaii nei?

Some of you, like me, remember when Hawaii was a territory. You remember when we were second class citizens, left out of the promise America offered residents of the 48 states. Then one bright morning, the door opened, and the nation welcomed us in. Hawaii became a state. What a beautiful day.

Hawaii was then an exciting place filled with hope. The last territorial Legislature glowed from the creative sparks produced by rubbing new ideas against old. Republicans and Democrats were all involved, a Republican governor, a Democratic Legislature, together generating change that enlarged Hawaii’s role in the nation, and embraced our entire population.

Now, today, such a beautiful day has come again. We have a new governor. The windows have been thrown open. The fresh breeze of change is blowing through our collective home. Once again, after an absence of 40 years, no matter what your party, Hawaii has a place for you. Fifty-one representatives feel the joy that comes from being part of solutions that involve Republicans, Democrats, and all Hawaii standing together.

The solutions we crave are those that help people find jobs. All of us want more jobs for Hawaii’s people. It’s the lack of jobs that is forcing families apart, and sending our friends to the mainland. Most transplanted ex-Hawaii residents would rather be home, if they could make a decent living here. We need jobs.

All of us want not just jobs, but better paying jobs for Hawaii’s people. The “price of paradise” is a real problem here. Hawaii’s cost of living is 22 percent above the national average; only the Bay Area is more expensive. Yet our wages are barely above the national average. We have an income gap that makes it hard to live here.

To have better paying jobs, we need to take Hawaii into the knowledge-based economy. For that, Hawaii’s people need a good public education system. Reforming public education has to be one of this Legislature’s top priorities. To seize our future, we must improve public education now — we need action, not studies.

The road ahead remains difficult. But we know that real change comes from Republicans and Democrats, business, labor, and government, working side-by-side to get the job done.

History has led us to this remarkable January 2003 morning. At the dawn of the territorial era, 100 years ago, James Dole brought the pineapple industry here. It was the last time Hawaii, on its own, generated a major new industry. Pearl Harbor, World War II, Korea, and Vietnam gave us the defense industry, a boon to our economy that owed little to our own initiative. And so it was with tourism, which grew Hawaii through statehood’s first three decades. Tourism thrived because of outside forces — the jet plane, the jumbo jet, mainlanders discovering the neighbor islands, and finally Japanese tourism and investment. It all came so easily. We were freed from the discipline of having to work together to make our own future.

Since the Japanese bubble burst in 1990, we have been searching for a new path to prosperity. After 1990, tourism stopped growing. After 1990, Hawaii family income dropped 15 percent in relation to the rest of the country, from 21 percent higher to only 6 percent higher. After 1990, while state government employment jumped 15 percent and our population grew by 9 percent, private sector job growth stopped-increasing by just 3 percent. After 1990, Hawaii’s poverty rate rose faster than that of any other state, and a higher share of Hawaii’s population left for other states than did the population of any other state.

Now we stand at the beginning of a new day. We are filled with hope. We know that no outside force or event is going to bless us the way Pacific wars and the jet plane helped us earlier. We know we are going to have to do it ourselves. And we will work hard to shape our own destiny. We will find the common ground that unites us, and for the benefit of Hawaii’s people, we will embrace change. Let’s do it, let’s do it together.

Mahalo.

“Scott Saiki Image”

Mr. Speaker, A tsunami of words Will roll over our ears during the next few months. I believe it is clear that we need to listen better and learn more to effectively lead this state. So allow me to start off with one thought: We get it.

The members of this House walked hundreds of miles during the past year, listening to the concerns of their neighbors, community leaders and the people in their districts. Again and again they heard a similar message. Voters want accountability in government and in their schools, and they want [results]. We get it.

The people of Hawaii want clean government — fair, honest and above board. With this last election, Hawaii stands at a crossroads. And it is worth considering just how we got here. Because right now, before we choose a path on which to travel, we should make an honest assessment of where we are.

Many people think the Democrats have gotten too comfortable. That we have been in power for too long. So they voted for change, and some of the people who voted for that change were Democrats too.

But I would like to emphasize one point. During the past four decades, we have led the path to fundamental change in Hawaii. We have transformed our state from a plantation-based economy to a forty billion dollar economy that rests upon technology, business, finance, tourism and agriculture, and employs over 570,000 people.

We have developed a public education system that now serves over 183,000 students. We have protected and continue to safeguard our air, water, and land for future generations. In making this change, we strove to advance economic and social equality for all.

This year, they must return to these roots. I’m not going to deliver a laundry list of proposals today. Instead, this year, we’re going to do a few things and do them well. And what we propose, we will achieve.

This House will introduce a fundamental change in campaign financing, freed from the influence of special friends with large checkbooks. We will ban government contractors from giving contributions to any candidate for public office, whether at the executive or legislative level.

We will introduce a new system to expedite school repair and maintenance and to put control of contracts into the hands of local schools where it belongs. We must provide a safe and comfortable learning environment so that our children will thrive.

We will launch a Community School Board Initiative to give parents, teachers, students and community leaders a greater voice in how their schools are run. But this House will also insist that major school reforms be tested and designed for full accountability. We know from experience that just because an idea sounds good, does not mean it is good.

Many of our communities are plagued by an epidemic of ice. It breaks up families, causes crime, and strips young people of their future. This is not a new problem for Hawaii, but it’s getting worse. Drug dealers must face swift and effective punishment. But for drug abusers, rehabilitation must play a greater role.

We must focus on prevention because prisons and tough laws alone will not eliminate the ice problem. We will establish community based rehabilitation centers and targeted law-enforcement teams to stop ice.

One hundred and ten years ago this week, Queen Liliuokalani was overthrown and Hawaiian home rule ended. Hawaiians have waited too long for this wrong to be righted. This House supports the rights of the native Hawaiian people and just as it did two years ago, will urge Congress to support legislation to achieve Hawaiian self-governance. We ask the governor to join us in encouraging Congress to take action now.

The Hawaiian people are taking charge of their own destiny. And this is what we all want — to be in charge of our own destinies. Just think about how this has helped make Hawaii great — ordinary people from all walks of life can make their mark here.

Mr. Speaker, this morning you have shared with us your vision for government that is accountable and gets results. We can do better, and we will do better. For all of us, the way to begin that journey is to stand at the crossroads and take a step on the right path, the path lined with our Democratic principles of fairness, equality, tolerance and opportunity.

When there is change at the top, people expect a new beginning. But we cannot build our future with a mere slogan. Our new beginning has a human face and it is already here in this chamber.

I would like to introduce the newest House Democrats and ask them to please stand: Representative Kirk Caldwell, Representative Cindy Evans, Representative Sol Kahoohalahala, Representative Jon Karamatsu, Representative Romy Mindo, Representative Scott Nishimoto, Representative Maile Shimabukuro, Representative Alex Sonson, Representative Tulsi Tamayo, Representative Glen Wakai, Representative Tommy Waters.

This is the new generation of Hawaii’s leaders. And Mr. Speaker, they get it too. Thank you.

“Scott Saiki Image”

Mr. Speaker, A tsunami of words Will roll over our ears during the next few months. I believe it is clear that we need to listen better and learn more to effectively lead this state. So allow me to start off with one thought: We get it.

The members of this House walked hundreds of miles during the past year, listening to the concerns of their neighbors, community leaders and the people in their districts. Again and again they heard a similar message. Voters want accountability in government and in their schools, and they want [results]. We get it.

The people of Hawaii want clean government — fair, honest and above board. With this last election, Hawaii stands at a crossroads. And it is worth considering just how we got here. Because right now, before we choose a path on which to travel, we should make an honest assessment of where we are.

Many people think the Democrats have gotten too comfortable. That we have been in power for too long. So they voted for change, and some of the people who voted for that change were Democrats too.

But I would like to emphasize one point. During the past four decades, we have led the path to fundamental change in Hawaii. We have transformed our state from a plantation-based economy to a forty billion dollar economy that rests upon technology, business, finance, tourism and agriculture, and employs over 570,000 people.

We have developed a public education system that now serves over 183,000 students. We have protected and continue to safeguard our air, water, and land for future generations. In making this change, we strove to advance economic and social equality for all.

This year, they must return to these roots. I’m not going to deliver a laundry list of proposals today. Instead, this year, we’re going to do a few things and do them well. And what we propose, we will achieve.

This House will introduce a fundamental change in campaign financing, freed from the influence of special friends with large checkbooks. We will ban government contractors from giving contributions to any candidate for public office, whether at the executive or legislative level.

We will introduce a new system to expedite school repair and maintenance and to put control of contracts into the hands of local schools where it belongs. We must provide a safe and comfortable learning environment so that our children will thrive.

We will launch a Community School Board Initiative to give parents, teachers, students and community leaders a greater voice in how their schools are run. But this House will also insist that major school reforms be tested and designed for full accountability. We know from experience that just because an idea sounds good, does not mean it is good.

Many of our communities are plagued by an epidemic of ice. It breaks up families, causes crime, and strips young people of their future. This is not a new problem for Hawaii, but it’s getting worse. Drug dealers must face swift and effective punishment. But for drug abusers, rehabilitation must play a greater role.

We must focus on prevention because prisons and tough laws alone will not eliminate the ice problem. We will establish community based rehabilitation centers and targeted law-enforcement teams to stop ice.

One hundred and ten years ago this week, Queen Liliuokalani was overthrown and Hawaiian home rule ended. Hawaiians have waited too long for this wrong to be righted. This House supports the rights of the native Hawaiian people and just as it did two years ago, will urge Congress to support legislation to achieve Hawaiian self-governance. We ask the governor to join us in encouraging Congress to take action now.

The Hawaiian people are taking charge of their own destiny. And this is what we all want — to be in charge of our own destinies. Just think about how this has helped make Hawaii great — ordinary people from all walks of life can make their mark here.

Mr. Speaker, this morning you have shared with us your vision for government that is accountable and gets results. We can do better, and we will do better. For all of us, the way to begin that journey is to stand at the crossroads and take a step on the right path, the path lined with our Democratic principles of fairness, equality, tolerance and opportunity.

When there is change at the top, people expect a new beginning. But we cannot build our future with a mere slogan. Our new beginning has a human face and it is already here in this chamber.

I would like to introduce the newest House Democrats and ask them to please stand: Representative Kirk Caldwell, Representative Cindy Evans, Representative Sol Kahoohalahala, Representative Jon Karamatsu, Representative Romy Mindo, Representative Scott Nishimoto, Representative Maile Shimabukuro, Representative Alex Sonson, Representative Tulsi Tamayo, Representative Glen Wakai, Representative Tommy Waters.

This is the new generation of Hawaii’s leaders. And Mr. Speaker, they get it too. Thank you.

Calvin Say Image Honored guests, members, ladies and gentlemen. Aloha and welcome. The 22nd session of the Hawaii State Legislature convenes today with a mandate from the people for change. Our families and communities are being tested in ways that question our resolve and our ability to meet the challenges before us. All around us, the world seems on the brink of renewed chaos — the international scene threatens war, the American economy is faltering. More than 35 states, including our own, face wrenching budget decisions. The optimism of many of us has eroded. Our seniors are forced to keep working. Our most important institutions have been wracked by scandal. Corporate officers face indictment for fraud and theft, leaving their companies bankrupt and their employees facing ruin. Politicians have betrayed our trust seeking personal gain at the community’s expense. Our challenges appear far more difficult and even dangerous than they were just two years ago. In this time of turmoil, Hawaii voters made an historic decision. We elected the first woman as governor in our state’s history. The fact that she is also a Republican is not my concern. She is our governor — we need each other’s help, and we must find a way to work together to meet the challenges of our time. I speak to you today, not just as an elected leader, but as a citizen and a small businessman, a neighbor and a friend. We must not give up hope. The promise lies within each of us to create a better future for our children, but to do that, we must make tough decisions. First of all we must begin by recognizing that the days of asking, “What’s in it for me?” are over. We must forge a new partnership where each of us who is able carries a fair share of the load. We must find a way to continue to protect those among us who cannot help themselves. Many citizens have lost faith in government to do the right thing. We can begin to restore their trust by putting government on the same kind of performance standards that we are now asking of our children in school. That means that government sets objectives that are measurable, specific and achievable. When a government agency says a program will create better-paying jobs, people have a right to expect that promise to be kept. This session we will mandate new performance standards that ensure politicians and government agencies do not make promises they cannot keep. To help us achieve this goal, the auditor’s watchdog authority will be expanded. We will make sure that our own house is in order. Campaign finance reform will be a priority this session. Corporations and special interest groups cannot be allowed to use their campaign contributions to unduly influence the people’s business. And politicians who violate the people’s trust must know the consequences of that violation will be severe. We will put more decision-making power into the hands of the people we serve. Our communities have a right to a bigger say in how their schools are run. But at the same time we should be careful and not waste our time trying to reinvent the wheel. We can learn from the experience of other communities where district school boards were tried and failed. These experiments, which looked so good at the start, failed because they did not give the schools the one thing they need — accountability. And we already know that accountability is a significant problem for our schools. Just last week, a national survey ranked Hawaii schools as ninth lowest in the nation in terms of accountability. It should be clear to all of us by now — we can no longer accept status quo schools. We will propose significant reforms in school administration. These reforms will give our schools greater authority and flexibility, help them to obtain needed resources, and build and manage community support. Most important of all, these reforms will provide new standards for accountability. The state system of school repair and maintenance is woefully inadequate. This is one critical area where community-based decisions are the right way. Local schools know what needs to be fixed. Government should provide the resources and then get out of the way. We will pass legislation to allow schools to make their own contract decisions and speed up repair and maintenance. Parents and community members need a greater voice in the operation of their neighborhood schools. We will propose the establishment of a community-based school board initiative. Imagine what we can do if teachers, parents, administrators and students set their goals together. Passing a standardized test is not enough. We must teach our kids how to learn, and help them learn how to think. Sept. 11 taught us a lesson we can never forget — dependence on one industry or one resource is a dependence we can no longer afford. We must diversify our economic base and lessen our dependence on outside resources. When our nation was attacked, Hawaii’s economic engine took a direct hit. There are hopeful signs of recovery, and our hard work in the Special Session has produced some results, but Hawaii’s economy has not fully recovered. If our nation goes to war, defense spending in Hawaii will decrease, That is a real possibility and it must strengthen our resolve to diversify Hawaii’s job base. We must act to help local business improve job retention. Existing small businesses are the backbone of our economy. We must help them grow. To help in this effort, we will propose a targeted job creation tax initiative. This measure will help diversify our industries, and encourage outside businesses to bring new jobs to Hawaii. Tax incentives can be a vital part of an overall economic strategy, but the people and companies who use them must also be held to a standard. New credit programs must undergo regular financial checkups and be held accountable for results. The Tax Review Commission’s recent report to the Legislature is right on track. We believe its recommendations are a solid base on which to build tax incentives for our New Economy. It is important that all of us understand one thing — economic development is not a business agenda, it is a way to accomplish Hawaii’s social goals: *Quality, affordable health care for the sick and elderly; *A healthy environment for our children to grow up in; *Higher-paying jobs to help support our families; *Social equality for all of Hawaii’s citizens; and *The preservation of values built into our host culture. The ultimate goal of economic development is to benefit our people. We must shape our economic development in a way that’s right for us, not special interests or the very wealthy. Today in our nation’s capital, old thinking rules the administration’s policies. These worn-out ideas propose enormous tax cuts for the very rich while the national deficit begins climbing toward historic highs. Once again, we are borrowing on our children’s future. These same tired ideas come from a president who believes the elimination of dividend taxes will ignite the next economic boom. These measures are sure to bring happy days to the White House, but they will not put food on our tables or fix a school’s leaky roof. What the Republican administration in Washington fails to realize is our critical need for a comprehensive domestic strategy. Even people who worked for this administration say it has no domestic policy. Instead, it focuses on its foreign affairs agenda and manages the home front with public relations tactics and Republican programs that benefit the wealthy. Let’s look at the facts. The latest analysis of Federal Reserve data shows that 85 percent of the stocks in this country are owned by the very rich. The president says if we help these people, the rest of us will benefit later on. Twenty years ago, they called that “trickle-down” economics. Given our current budget situation, we may not have enough time to wait for the trickle. We believe we have a better idea — an idea that focuses on our future here in Hawaii, a future that is built by increasing the knowledge base of our economy through research, education, skills and technical innovation. We believe the
most effective way of managing this future is through partnerships between government and local enterprises. Government will do a better job if it engages in these partnerships as a facilitator and not a regulator. Our businesses, schools and non-profits need a significant infusion of technology to compete in this knowledge-based economy. We cannot accomplish this alone. Together, with the help of private partnerships, we can achieve greater efficiency and measurable results. In 1881, King David Kalakaua and his Attorney General turned to one of the most brilliant minds in history. The King asked a man named Edison to study the possibility of using power from Hawaii’s volcanoes to produce electricity to light Hawaii’s homes. It was more than 80 years after the King’s discussion with Edison that Hawaii began geothermal exploration. Today, geothermal energy provides almost 20 percent of energy needs on the Island of Hawaii. And still, there are small and vocal groups that would like to turn back the clock. We can no longer afford to ignore an energy source that is in our own backyard. The time has come to face a hard truth about Hawaii’s energy needs — imported oil supplies 90 percent of Hawaii’s energy. No place else in the United States is so critically dependent on imported oil. Unlike the mainland, Hawaii cannot turn to neighboring states to make up for any temporary or permanent energy shortages. Unlike the mainland, imported oil is the single thread that can completely unravel Hawaii’s future. Geothermal can be a bigger part of our energy future, but so must other alternative energy sources. We are blessed with abundant sunlight, but few of Hawaii government buildings take advantage of solar power. We can do better. This year, we will extend renewable energy tax credits because we know they work. And we will begin a program to mandate the conversion of public buildings to solar energy resources. Just this month, Hawaiian Electric announced a promising new program with a $10 million investment in alternative energy development. This is a promising first step. But we can do more. We will speed up this process by seeking a statewide energy audit. The people of Hawaii are counting on you, Gov. Lingle, to lay out a compelling agenda in your State of the State address. But even your most avid supporters concede that dramatic breakthroughs may be difficult. I have great hopes for the governor. And I have great hopes for Hawaii’s lawmakers. Working together, we can meet the challenges of our time. I also appreciate our new governor’s efforts to help with the issue of interim payment of revenues to the Office of Hawaiian Affairs. However, we have found a way to resolve this issue expeditiously without having to go further through the legislative process. Over the last several weeks, the Chair of OHA, together with legal counsel, and the Chair and Vice-chair of the Hawaiian Affairs Committee, worked out a solution. Haunani Apoliona, Ezra Kanoho, Sol Kahoohalahala, through your efforts our obligations to the Hawaiian people will be fulfilled. $10.3 million in deferred payment will be made. Members, on your desk is a small gift from me. It is a symbol of what we can accomplish together. The bamboo plant is an ancient Chinese symbol of strength and good fortune The empty center of the stem represents a virtuous person with an open mind. The bamboo thrives because it is flexible. I hope we can be like this too — flexible, but strong. Aloha and mahalo.

Galen Fox Image Aloha Kakahiaka. It’s a beautiful morning. Isn’t it a beautiful day in Hawaii nei? Some of you, like me, remember when Hawaii was a territory. You remember when we were second class citizens, left out of the promise America offered residents of the 48 states. Then one bright morning, the door opened, and the nation welcomed us in. Hawaii became a state. What a beautiful day. Hawaii was then an exciting place filled with hope. The last territorial Legislature glowed from the creative sparks produced by rubbing new ideas against old. Republicans and Democrats were all involved, a Republican governor, a Democratic Legislature, together generating change that enlarged Hawaii’s role in the nation, and embraced our entire population. Now, today, such a beautiful day has come again. We have a new governor. The windows have been thrown open. The fresh breeze of change is blowing through our collective home. Once again, after an absence of 40 years, no matter what your party, Hawaii has a place for you. Fifty-one representatives feel the joy that comes from being part of solutions that involve Republicans, Democrats, and all Hawaii standing together. The solutions we crave are those that help people find jobs. All of us want more jobs for Hawaii’s people. It’s the lack of jobs that is forcing families apart, and sending our friends to the mainland. Most transplanted ex-Hawaii residents would rather be home, if they could make a decent living here. We need jobs. All of us want not just jobs, but better paying jobs for Hawaii’s people. The “price of paradise” is a real problem here. Hawaii’s cost of living is 22 percent above the national average; only the Bay Area is more expensive. Yet our wages are barely above the national average. We have an income gap that makes it hard to live here. To have better paying jobs, we need to take Hawaii into the knowledge-based economy. For that, Hawaii’s people need a good public education system. Reforming public education has to be one of this Legislature’s top priorities. To seize our future, we must improve public education now — we need action, not studies. The road ahead remains difficult. But we know that real change comes from Republicans and Democrats, business, labor, and government, working side-by-side to get the job done. History has led us to this remarkable January 2003 morning. At the dawn of the territorial era, 100 years ago, James Dole brought the pineapple industry here. It was the last time Hawaii, on its own, generated a major new industry. Pearl Harbor, World War II, Korea, and Vietnam gave us the defense industry, a boon to our economy that owed little to our own initiative. And so it was with tourism, which grew Hawaii through statehood’s first three decades. Tourism thrived because of outside forces — the jet plane, the jumbo jet, mainlanders discovering the neighbor islands, and finally Japanese tourism and investment. It all came so easily. We were freed from the discipline of having to work together to make our own future. Since the Japanese bubble burst in 1990, we have been searching for a new path to prosperity. After 1990, tourism stopped growing. After 1990, Hawaii family income dropped 15 percent in relation to the rest of the country, from 21 percent higher to only 6 percent higher. After 1990, while state government employment jumped 15 percent and our population grew by 9 percent, private sector job growth stopped-increasing by just 3 percent. After 1990, Hawaii’s poverty rate rose faster than that of any other state, and a higher share of Hawaii’s population left for other states than did the population of any other state. Now we stand at the beginning of a new day. We are filled with hope. We know that no outside force or event is going to bless us the way Pacific wars and the jet plane helped us earlier. We know we are going to have to do it ourselves. And we will work hard to shape our own destiny. We will find the common ground that unites us, and for the benefit of Hawaii’s people, we will embrace change. Let’s do it, let’s do it together. Mahalo.

Scott Saiki Image Mr. Speaker, A tsunami of words Will roll over our ears during the next few months. I believe it is clear that we need to listen better and learn more to effectively lead this state. So allow me to start off with one thought: We get it. The members of this House walked hundreds of miles during the past year, listening to the concerns of their neighbors, community leaders and the people in their districts. Again and again they heard a similar message. Voters want accountability in government and in their schools, and they want [results]. We get it. The people of Hawaii want clean government — fair, honest and above board. With this last election, Hawaii stands at a crossroads. And it is worth considering just how we got here. Because right now, before we choose a path on which to travel, we should make an honest assessment of where we are. Many people think the Democrats have gotten too comfortable. That we have been in power for too long. So they voted for change, and some of the people who voted for that change were Democrats too. But I would like to emphasize one point. During the past four decades, we have led the path to fundamental change in Hawaii. We have transformed our state from a plantation-based economy to a forty billion dollar economy that rests upon technology, business, finance, tourism and agriculture, and employs over 570,000 people. We have developed a public education system that now serves over 183,000 students. We have protected and continue to safeguard our air, water, and land for future generations. In making this change, we strove to advance economic and social equality for all. This year, they must return to these roots. I’m not going to deliver a laundry list of proposals today. Instead, this year, we’re going to do a few things and do them well. And what we propose, we will achieve. This House will introduce a fundamental change in campaign financing, freed from the influence of special friends with large checkbooks. We will ban government contractors from giving contributions to any candidate for public office, whether at the executive or legislative level. We will introduce a new system to expedite school repair and maintenance and to put control of contracts into the hands of local schools where it belongs. We must provide a safe and comfortable learning environment so that our children will thrive. We will launch a Community School Board Initiative to give parents, teachers, students and community leaders a greater voice in how their schools are run. But this House will also insist that major school reforms be tested and designed for full accountability. We know from experience that just because an idea sounds good, does not mean it is good. Many of our communities are plagued by an epidemic of ice. It breaks up families, causes crime, and strips young people of their future. This is not a new problem for Hawaii, but it’s getting worse. Drug dealers must face swift and effective punishment. But for drug abusers, rehabilitation must play a greater role. We must focus on prevention because prisons and tough laws alone will not eliminate the ice problem. We will establish community based rehabilitation centers and targeted law-enforcement teams to stop ice. One hundred and ten years ago this week, Queen Liliuokalani was overthrown and Hawaiian home rule ended. Hawaiians have waited too long for this wrong to be righted. This House supports the rights of the native Hawaiian people and just as it did two years ago, will urge Congress to support legislation to achieve Hawaiian self-governance. We ask the governor to join us in encouraging Congress to take action now. The Hawaiian people are taking charge of their own destiny. And this is what we all want — to be in charge of our own destinies. Just think about how this has helped make Hawaii great — ordinary people from all walks of life can make their mark here. Mr. Speaker, this morning you have shared with us your vision for government that is accountable and gets results. We can do better, and we will do better. For all of us, the way to begin that journey is to stand at the crossroads and take a step on the right path, the path lined with our Democratic principles of fairness, equality, tolerance and opportunity. When there is change at the top, people expect a new beginning. But we cannot build our future with a mere slogan. Our new beginning has a human face and it is already here in this chamber. I would like to introduce the newest House Democrats and ask them to please stand: Representative Kirk Caldwell, Representative Cindy Evans, Representative Sol Kahoohalahala, Representative Jon Karamatsu, Representative Romy Mindo, Representative Scott Nishimoto, Representative Maile Shimabukuro, Representative Alex Sonson, Representative Tulsi Tamayo, Representative Glen Wakai, Representative Tommy Waters. This is the new generation of Hawaii’s leaders. And Mr. Speaker, they get it too. Thank you.

Calvin Say Image Honored guests, members, ladies and gentlemen. Aloha and welcome. The 22nd session of the Hawaii State Legislature convenes today with a mandate from the people for change. Our families and communities are being tested in ways that question our resolve and our ability to meet the challenges before us. All around us, the world seems on the brink of renewed chaos — the international scene threatens war, the American economy is faltering. More than 35 states, including our own, face wrenching budget decisions. The optimism of many of us has eroded. Our seniors are forced to keep working. Our most important institutions have been wracked by scandal. Corporate officers face indictment for fraud and theft, leaving their companies bankrupt and their employees facing ruin. Politicians have betrayed our trust seeking personal gain at the community’s expense. Our challenges appear far more difficult and even dangerous than they were just two years ago. In this time of turmoil, Hawaii voters made an historic decision. We elected the first woman as governor in our state’s history. The fact that she is also a Republican is not my concern. She is our governor — we need each other’s help, and we must find a way to work together to meet the challenges of our time. I speak to you today, not just as an elected leader, but as a citizen and a small businessman, a neighbor and a friend. We must not give up hope. The promise lies within each of us to create a better future for our children, but to do that, we must make tough decisions. First of all we must begin by recognizing that the days of asking, “What’s in it for me?” are over. We must forge a new partnership where each of us who is able carries a fair share of the load. We must find a way to continue to protect those among us who cannot help themselves. Many citizens have lost faith in government to do the right thing. We can begin to restore their trust by putting government on the same kind of performance standards that we are now asking of our children in school. That means that government sets objectives that are measurable, specific and achievable. When a government agency says a program will create better-paying jobs, people have a right to expect that promise to be kept. This session we will mandate new performance standards that ensure politicians and government agencies do not make promises they cannot keep. To help us achieve this goal, the auditor’s watchdog authority will be expanded. We will make sure that our own house is in order. Campaign finance reform will be a priority this session. Corporations and special interest groups cannot be allowed to use their campaign contributions to unduly influence the people’s business. And politicians who violate the people’s trust must know the consequences of that violation will be severe. We will put more decision-making power into the hands of the people we serve. Our communities have a right to a bigger say in how their schools are run. But at the same time we should be careful and not waste our time trying to reinvent the wheel. We can learn from the experience of other communities where district school boards were tried and failed. These experiments, which looked so good at the start, failed because they did not give the schools the one thing they need — accountability. And we already know that accountability is a significant problem for our schools. Just last week, a national survey ranked Hawaii schools as ninth lowest in the nation in terms of accountability. It should be clear to all of us by now — we can no longer accept status quo schools. We will propose significant reforms in school administration. These reforms will give our schools greater authority and flexibility, help them to obtain needed resources, and build and manage community support. Most important of all, these reforms will provide new standards for accountability. The state system of school repair and maintenance is woefully inadequate. This is one critical area where community-based decisions are the right way. Local schools know what needs to be fixed. Government should provide the resources and then get out of the way. We will pass legislation to allow schools to make their own contract decisions and speed up repair and maintenance. Parents and community members need a greater voice in the operation of their neighborhood schools. We will propose the establishment of a community-based school board initiative. Imagine what we can do if teachers, parents, administrators and students set their goals together. Passing a standardized test is not enough. We must teach our kids how to learn, and help them learn how to think. Sept. 11 taught us a lesson we can never forget — dependence on one industry or one resource is a dependence we can no longer afford. We must diversify our economic base and lessen our dependence on outside resources. When our nation was attacked, Hawaii’s economic engine took a direct hit. There are hopeful signs of recovery, and our hard work in the Special Session has produced some results, but Hawaii’s economy has not fully recovered. If our nation goes to war, defense spending in Hawaii will decrease, That is a real possibility and it must strengthen our resolve to diversify Hawaii’s job base. We must act to help local business improve job retention. Existing small businesses are the backbone of our economy. We must help them grow. To help in this effort, we will propose a targeted job creation tax initiative. This measure will help diversify our industries, and encourage outside businesses to bring new jobs to Hawaii. Tax incentives can be a vital part of an overall economic strategy, but the people and companies who use them must also be held to a standard. New credit programs must undergo regular financial checkups and be held accountable for results. The Tax Review Commission’s recent report to the Legislature is right on track. We believe its recommendations are a solid base on which to build tax incentives for our New Economy. It is important that all of us understand one thing — economic development is not a business agenda, it is a way to accomplish Hawaii’s social goals: *Quality, affordable health care for the sick and elderly; *A healthy environment for our children to grow up in; *Higher-paying jobs to help support our families; *Social equality for all of Hawaii’s citizens; and *The preservation of values built into our host culture. The ultimate goal of economic development is to benefit our people. We must shape our economic development in a way that’s right for us, not special interests or the very wealthy. Today in our nation’s capital, old thinking rules the administration’s policies. These worn-out ideas propose enormous tax cuts for the very rich while the national deficit begins climbing toward historic highs. Once again, we are borrowing on our children’s future. These same tired ideas come from a president who believes the elimination of dividend taxes will ignite the next economic boom. These measures are sure to bring happy days to the White House, but they will not put food on our tables or fix a school’s leaky roof. What the Republican administration in Washington fails to realize is our critical need for a comprehensive domestic strategy. Even people who worked for this administration say it has no domestic policy. Instead, it focuses on its foreign affairs agenda and manages the home front with public relations tactics and Republican programs that benefit the wealthy. Let’s look at the facts. The latest analysis of Federal Reserve data shows that 85 percent of the stocks in this country are owned by the very rich. The president says if we help these people, the rest of us will benefit later on. Twenty years ago, they called that “trickle-down” economics. Given our current budget situation, we may not have enough time to wait for the trickle. We believe we have a better idea — an idea that focuses on our future here in Hawaii, a future that is built by increasing the knowledge base of our economy through research, education, skills and technical innovation. We believe the most effective way of managing this future is through partnerships between government and local enterprises. Government will do a better job if it engages in these partnerships as a facilitator and not a regulator. Our businesses, schools and non-profits need a significant infusion of technology to compete in this knowledge-based economy. We cannot accomplish this alone. Together, with the help of private partnerships, we can achieve greater efficiency and measurable results. In 1881, King David Kalakaua and his Attorney General turned to one of the most brilliant minds in history. The King asked a man named Edison to study the possibility of using power from Hawaii’s volcanoes to produce electricity to light Hawaii’s homes. It was more than 80 years after the King’s discussion with Edison that Hawaii began geothermal exploration. Today, geothermal energy provides almost 20 percent of energy needs on the Island of Hawaii. And still, there are small and vocal groups that would like to turn back the clock. We can no longer afford to ignore an energy source that is in our own backyard. The time has come to face a hard truth about Hawaii’s energy needs — imported oil supplies 90 percent of Hawaii’s energy. No place else in the United States is so critically dependent on imported oil. Unlike the mainland, Hawaii cannot turn to neighboring states to make up for any temporary or permanent energy shortages. Unlike the mainland, imported oil is the single thread that can completely unravel Hawaii’s future. Geothermal can be a bigger part of our energy future, but so must other alternative energy sources. We are blessed with abundant sunlight, but few of Hawaii government buildings take advantage of solar power. We can do better. This year, we will extend renewable energy tax credits because we know they work. And we will begin a program to mandate the conversion of public buildings to solar energy resources. Just this month, Hawaiian Electric announced a promising new program with a $10 million investment in alternative energy development. This is a promising first step. But we can do more. We will speed up this process by seeking a statewide energy audit. The people of Hawaii are counting on you, Gov. Lingle, to lay out a compelling agenda in your State of the State address. But even your most avid supporters concede that dramatic breakthroughs may be difficult. I have great hopes for the governor. And I have great hopes for Hawaii’s lawmakers. Working together, we can meet the challenges of our time. I also appreciate our new governor’s efforts to help with the issue of interim payment of revenues to the Office of Hawaiian Affairs. However, we have found a way to resolve this issue expeditiously without having to go further through the legislative process. Over the last several weeks, the Chair of OHA, together with legal counsel, and the Chair and Vice-chair of the Hawaiian Affairs Committee, worked out a solution. Haunani Apoliona, Ezra Kanoho, Sol Kahoohalahala, through your efforts our obligations to the Hawaiian people will be fulfilled. $10.3 million in deferred payment will be made. Members, on your desk is a small gift from me. It is a symbol of what we can accomplish together. The bamboo plant is an ancient Chinese symbol of strength and good fortune The empty center of the stem represents a virtuous person with an open mind. The bamboo thrives because it is flexible. I hope we can be like this too — flexible, but strong. Aloha and mahalo.