May

10

Senator Michelle Kidani’s Floor Remarks on House Bill 2012, the Hawaii State Supplemental Budget

Budget / Ways and Means

On May 3, 2012, Senator Michelle Kidani, who serves as vice chair of the Senate Committee on Ways and Means and oversees Capital Improvements Projects for the Senate, offered the following remarks in support of House Bill 2012, the Hawaii State Supplemental Budget:

Thank you Mr. President. I rise in support of this measure.

This past year has been one of many, many challenges, especially in crafting a Capital Improvement Program that meets the needs of the State while balancing the fiscal considerations of an improving, but still fragile economic recovery.  We know that now is the time for investment in our state’s infrastructure, while costs for materials and labor are still low, and the need for job creation has never been greater. I wish to thank Chair Ige for his leadership during this very long and tedious process and you for your guidance and letting me vent when needed. Also Mr. President, I would like to introduce and thank my staff member Will Kane without whose help we could not have completed the CIP budget.

 In HB2012 CD1, we have taken the approach of investing in existing state facilities and infrastructure, especially those for education, technological innovations and facilities that will reduce the expenditure of taxpayer funds in the form of rent or lease payments.

Therefore, the HB2012 CD1 proposes a CIP budget for FY13 in the amount of $3.2 Billion, $826 million of which is funded by General Obligation or Reimbursable Bonds. It is important to note, that due to the recent refinancing of previously issued bonds and the savings realized from this and the proceeds from a bond issuance in a healthy bond market, and prior year project lapses, there are no additional payments for debt service on $350 million of the total amount appropriated. Also of note, this budget includes over $400 million of Repair and Maintenance projects included in the Senate’s Invest in Hawaii Act of 2012 (SB 2012).

Highlights of the budget bill before us this morning include:

-         $60 million for the department of Human services for renovations to our public housing.

-         $135 million for the department of education facilities, to provide a 21st century learning environment in our aging schools.

-         Almost $50 million for the department of Health to address critical health and safety needs.     

-         This budget also provides funding for projects across nearly every campus in the UH System, including funding to build:

           – the Culinary Institute of the Pacific at Kapiolani CC,

          – University of Hawaii Athletics Facilities

          – a dedicated facility for the Academy for Creative Media Academy at UH-West O`ahu, and

          – funding to continue construction of a new community college campus at Palamanui on the Big Island’s Kona Coast.

When crafting this budget, the utilization of currently under utilized state facilities was considered. An example of this lies right across the street from this building. The Kamamalu building has sat empty for years, while we spend millions in lease payments to private companies, instead of renovating our existing facilities. Therefore, HB 2012 CD1 has appropriated the funds that would allow this building to once again be used by our state agencies, which is the most responsible way to reduce escalating rental costs.

Lastly, Mr. President, the Senate’s Capital Improvement Program budget provides appropriations for projects across nearly every department. These include funding to create a statewide financial management system, renovate additional facilities for the Department of Health, and improvements to all airports, statewide. This will begin to address the concerns and needs of our visitors, which are the lifeblood of our economy,

In closing, I would like to again thank Chair Ige and my fellow members of the Committee for their support and hard work in crafting this budget, and I believe we all look forward to the positive impact this budget will have on the State.

To view video click here.

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May

10

2012 Supplemental State Budget Breakdown by Department

Articles / Budget / Ways and Means

This year the Legislature passed an $11.2 billion supplemental budget for the State of Hawaii, House Bill 2012. Following three years of budget cuts totaling more than a billion dollars each year, this year’s budget provided the Senate with a refreshing opportunity to reinforce the safety net where needed, reinstitute core services that have been decimated over the past three years, and make strategic investments in key areas that can help us grow the economy and sustain a more prosperous future for Hawaii. The chart above illustrates each State department’s funding allocation as appropriated through House Bill 2012.

Here is the numeric breakdown:

Department Fiscal Year 2013
Accounting and General Services $     166,205,378
Agriculture $     42,101,954
Attorney General $     73,122,827
Budget and Finance $     1,847,935,987
Business, Economic Development, and Tourism $     241,367,661
Commerce and Consumer Affairs $     50,586,801
Defense $     109,083,863
Education $     1,856,429,564
Governor $     3,008,433
Hawaiian Home Lands $     184,992,104
Health $     1,501,022,002
Human Resources Development $     19,804,446
Human Services $     2,385,651,645
Labor $     490,431,649
Land and Natural Resources $     111,534,249
Lieutenant Governor $     1,020,774
Public Safety $     234,581,424
Subsidies $     873,859
Taxation $     22,764,775
Transportation $     846,569,213
University of Hawaii $     993,645,330
Grand Total  $    11,182,733,938
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May

09

Senator David Y. Ige’s Floor Remarks on the Executive Supplemental Appropriations Act of 2012

Budget / Ways and Means

On May, 3, 2012, Senate Committee on Ways and Means Chair David Y. Ige offered the following remarks in support of House Bill 2012, the Hawaii State Supplemental Budget:

Mister President, I rise to speak in favor of this measure, the executive supplemental appropriations act of 2012.

This measure is the product of the positive and collaborative efforts set forth by members of this Legislature, the executive branch of government, and numerous members of the public.

Colleagues, I thank all of you that have contributed and supported the Senate’s efforts to develop a responsible expenditure plan, especially my Vice Chair, the members of the Ways and Means Committee, and yourself, Mister President.

Additionally, I also appreciate House Finance Chair Oshiro and his tireless efforts to work with me to finalize the State budget. The Chairman has become fond of the saying in the heated crucible of negotiations, “iron sharpens iron.” Mister President, at this point, the Legislature must have two fairly sharp money Chairs at its disposal.

This session marks the first in years that we were not faced with addressing a deficit exceeding a billion dollars. Nonetheless, challenges remained. The budget submitted by the Governor was premised on general fund revenue growth projections that the Council on Revenues has since substantially reduced, and many worthy programs could not be funded at desired levels.

However, this budget does allow us to strengthen core government services that have been diminished over the years. The governor’s initial supplemental budget request included over $100 million to strengthen the safety net, support public education, and maintain essential services across the State. Colleagues, the measure before you is responsible and responsive to the Governor’s requests and initiatives.

The governor’s requested budget includes funding to significantly improve the infrastructure for information technology (IT) throughout state government, an area in which the Senate has led by example. This measure includes more than $25 million dollars that will be administered by the office of information management and technology (OIMT) for critical IT projects that will support increased efficiency in the transformation of state government.

The budget before you strengthens the safety net, and includes additional funds for child welfare, domestic violence shelters, Medicaid, and various shortfalls across the Department of Human Services. Additionally, $18.2 million provided for the temporary assistance for needy families program and another $3.6 million for information technology initiatives to modernize the Department of Human Services.

Education is a top priority of the Legislature. This measure underscores this by adding over $40 million to the Department of Education’s budget. The funds provided focus on key areas of investment in education, including more funding than requested by the Governor for the weighted student formula and student meals, and fully funding the Governor’s requested budget for the community school for adult program and student transportation.

Following significant evaluations of the Charter School system, this Legislature has a measure rewrite the charter school law. To ensure equal appropriations for the public schools as the charter schools, about $1 million dollars is provided through this measure and charter school legislation to develop and implement a transition plan and provide equal per pupil operating funding for charter school and regular education students.

Finally, one of the Governor’s key initiatives is the protection of priority watersheds. This measure recognizes the importance of protecting the State’s water resources and provides $5 million for this purpose.

The conference draft of this Supplemental Budget moves the State forward by protecting safety net services, strengthening funding for education, and making strategic investments that will advance our economy.

This budget is in line with that proposed by the Governor, and calls for an addition of just $1.4 million in general funds to the executive supplemental budget request, as adjusted for governor’s messages, for fiscal year 2013.

Colleagues, I commend each of your efforts that have helped bring us to this point and thank you for your support of this measure and the important issues it represents.

To view video click here.

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Apr

30

Budget Highlights

Budget

Senate and House Conferees passed House Bill 2012, relating to State Budget, early Saturday morning.  Here are highlights of the $11.2 billion dollar budget for fiscal year 2012-2013:

Human Services

$22,880,786 MedQuest
$18,191,515 Temporary Assistance for Needy Families (TANF)
$6,880,719 childwelfare

Department of Education

$14,000,000 Student Weighted Formula
$25,000,000 Student Transportation
$2,5000,000 Adult Education

Agriculture

$1,331,952 Plant Quarantine Inspectors
$169,859 Food Safety Inspectors

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Apr

18

2012 Opening Conference Remarks on the Hawaii State Budget

Budget / Ways and Means

On Tuesday, April 17, 2012, the Senate and House opened conference on the Hawaii State Supplemental Budget with comments from Senate Committee on Ways and Means Committee Chair David Y. Ige. House Finance Chair Marcus Oshiro also offered remarks.

With a notable 438 out of 620 budget worksheets already agreed upon by both sides of the aisle prior to the first day of the Conference, Senator Ige reflected that this year’s conference on the State Budget encompasses significantly more agreements between the Senate and the House.

I would like to say that this is a New Day. We do appreciate the hard work of the administration to really stop the practice of kicking the can down the street…We don’t have to wonder what the true status of our budget is because we stopped paying bills or we’ve denied payments or we’ve stopped tax refunds,” said Senator Ige. “I look forward to working through this Conference period to iron out the 30 percent of differences as we work to conclude the Budget.”

The Senate’s version of the 2012 Supplemental Budget seeks to move the State forward by shoring up safety net, significantly improve the infrastructure for information technology, invest in education and make strategic investments that will advance our economy.

To view Senator Ige’s remarks click here.

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Apr

16

State Funding for Projects on Hawaii Island Creates Jobs and Stimulates Economy

Budget

HONOLULU — Governor Abercrombie is releasing Capital Improvement Project (CIP) funding for the Waimea to Kau areas on the island of Hawaii.

I would like to thank the Governor for releasing the funding for these much needed projects,” said Senator Malama Solomon, who represents District 1, encompassing Waimea, Hamakua, North Hilo, Hilo and Keaukaha. “The projects will greatly impact and improve the lives of our residents who live in the area by providing work and accelerating our economic recovery.”

There are people who are under-employed and unemployed in the trades industry on Hawaii island, and these capital improvement projects will provide jobs that they so urgently need,” said Senator Gilbert Kahele, who represents District 2, encompassing Kau, Puna and Hilo.

Here are the following projects receiving funding:
• $1,000,000 Waimea Hydropower Plant: install a hydropower plant in the Waimea Irrigation System
• $874,925 Surveillance of Water-Side Threats to Critical Infrastructure at Hilo, Kawaihae,
Nawiliwili and Port Allen Harbors: design/build construction for surveillance systems
• $210,000 Hawaii Belt Road Drainage Improvements, Vicinity of Hakalau Bridge: drainage
improvements
• $3,200,000 State Lower Hamakua Ditch Watershed Project: land acquisition, design and
construction to repair the flumes, ditches, reservoirs, and tunnels
• $300,000 State Lower Hamakua Ditch Watershed Project: construction to repair the flumes,
ditches, reservoirs, and tunnels
• $2,000,000 Waimea Transfer Ditch Improvements: construction and improvements
• $4,150,000 Paauilo Rendering Plant and Slaughterhouse: building renovation, infrastructure
improvements and equipment replacement
• $113,000 Information and Communication Services Division – Anuenue Radio Sites and Towers:
design and construction engineering of Waiakea radio facility
• $2,500,000 Keaau Middle School: additional construction, works of art and equipment of a new
classroom building
• $500,000 Kau Irrigation System Improvements: plans and design for improvements, including
renovation of the existing water tunnel system in the Kau area
• $284,000 Kau Hospital: installation of solar powered parking lot lights, replacement of hospital
doors, renovation of entrance ramps and installation of a wireless repeater for advanced communications
• $4,000,000 University of Hawaii at Hilo Living Learning Community: construction and equipment
• $16,000,000 University of Hawaii at Hilo, Student Housing Developments Phase 1: construction
• $550,000 The Arc of Hilo: construction of the gymnasium

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Jan

27

Hawaii State Senate Introduces Bipartisan Bill Aimed at Stimulating Economy

Budget / Press Releases

HONOLULU – The Hawaii State Senate is united in support of Senate Bill 2012, which will be formally introduced and referred to its respective committee during Session this morning, Friday January 27, 2012.   Garnering bipartisan support, Senate Bill 2012, also known as “The Invest in Hawaii Act of 2012,” is an aggressive general obligation bond-funded $500 million Capital Improvement Program (CIP) package aimed at creating jobs by investing and stimulating our local economy from all corners of the state, from Hilo to Hanalei.

With Hawaii experiencing the lowest interest rates on record and significant savings made from the State’s most recent bond authorization and issuance, now is the time to invest in our State. The program will create shovel-ready jobs for all trades in the construction industry – from carpenters to consultants.  According to conservative estimates by the Department of Business, Economic Development, and Tourism’s  (DBEDT) job multiplier, this measure could create or sustain up to 4,000 direct jobs.

Investing now in needed State capital projects will have a direct positive impact on our economy.  With interest rates at a historic low, there has been no better time to make a significant investment in our State’s infrastructure, said Sen. David Y. Ige, chair of the Senate Committee on Ways and Means.

Projects to be considered should focus on smaller repair and maintenance projects to address aging infrastructures and to extend the useful life of existing state-owned assets and facilities.  Projects should also include those that address health and safety code concerns.  State departments that have been identified as part of the Program are:  the Department of Education, including the State Public Library System; the University of Hawaii, including athletic facilities; the Department of Accounting and General Services; the Department of Agriculture; the Department of Defense; the Department of Health, and health care facilities of the Hawaii Health Systems, the Department of Human Services; the Department of Land and Natural Resources; the Department of Public Safety and the Judiciary.  Funding will be distributed depending on the individual department’s needs and ability to commence work immediately.

Another priority of the bill is to develop sustainable and energy resources, such as photovoltaic technology.  Investing in renewable energy and upgrades to information technology initiatives throughout schools, hospitals, and office buildings will ultimately lead to cost savings and a reduction of the State’s carbon footprint.

This bill encourages the use of energy efficient materials whenever possible in the projects.  It’s important that we invest in alternative energy throughout our State facilities now to save tax payers money in the future,” said Sen. Michelle Kidani, vice chair of the Senate Committee on Ways and Means.

In order to expedite the backlogged repair and maintenance projects, Senate Bill 2012 would make revisions to the State’s permitting, approval and procurement process.  As a result, the accelerated process would get workers off the bench and on the job immediately, putting more money in workers’ pockets.  With this jolt in the economy, the safety net would be improved and a wide range of social and educational services would be provided.

“The Invest in Hawaii Act of 2012” is expected to be heard by the Senate Committee on Ways and Means in the upcoming weeks.

For more information on Senate Bill 2012 go to: http://www.capitol.hawaii.gov/.

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May

09

Balancing the Budget

Articles / Budget / Education

Hawaii, like all the other states, is in the midst of an economic recession.  Thus the biggest task facing the Senate this year was coming up with a balanced budget that would enable essential government services to continue to operate, while minimizing the economic pain on taxpayers and residents.  Under the direction of the Governor, all state agencies were ordered to cut their budgets by ten percent for the coming year, but it was the legislature’s task to fund all State activities.  After hundreds of hours of testimony in dozens of hearings, and many more hours of deliberation with their counterparts in the House of Representatives, the Senate was able to pass out a workable budget. A combination of bills include a variety of revenue generating components. These include a temporary suspension of some tax exemptions for nearly two dozen businesses, the repeal of a state income tax exemptions and a cap on itemized deductions for higher income taxpayers, and a delay in implementing an increase in personal exemptions and standard deductions for all taxpayers.

The Senate also signed off on a bill that will adjust rental car surcharges and another bill that would move some of the hotel room tax income from the counties to the State.  All of these actions should generate hundreds of millions of dollars for the State.

However, while there was some support from the House of Representatives, the Senate did not pass an overall increase in the State’s General Excise Tax, did not pass legislation that would tax pensions and did not agree to increase taxes on soda or liquor.

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Apr

30

Senator Ige Speaks to the Media about Bills that would Help Balance the Budget

Articles / Budget / Ways and Means

Senator David Y. Ige speaks to the media (4.29.2011) about bills that would help balance the budget shortly prior to the decking deadline for all fiscal bills.

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Apr

28

Senator David Y. Ige Explains Key Restorations in the State Budget

Articles / Budget / Ways and Means

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