The Hawaii State Senate accomplished many of its priorities set forth at the beginning of the 2012 Legislative Session. The overarching themes and priorities of the Senate were in alignment with Governor Abercrombie’s “A New Day in Hawaii.”

Although Hawaii is experiencing a steady economic recovery, many people are still unemployed, especially in the construction and trade industries. Realizing this reality, the Senate made job creation and creating a sustainable economy top priorities through its flagship initiative, The Invest in Hawaii Act of 2012. To accomplish this goal, the Senate was able to include in excess of $414M for repair and maintenance projects in the Capital Improvement Program portion of the Budget for fiscal year 2013, pursuant to House Bill 2012.

The projects will focus on smaller repairs and maintenance to extend the useful life of existing state-owned assets and facilities; energy conservation and sustainable improvements; and health, safety and code requirements. State departments and everyone statewide will benefit from this funding. All trades in the construction industry will prosper with the creation of more than 4-thousand shovel-ready jobs, as well as businesses that provide goods and services to the industry.

To further support tourism, strategic investment was made through the development and implementation of new initiatives to significantly increase visitors. China in particular is a rising market for Hawaii’s tourism industry, with unprecedented growth potential. Looking ahead into the future, the Senate supports an emerging market, such as Space Tourism. It has the potential of being a billion dollar global industry that could significantly increase state revenues, provide new aerospace jobs, and rejuvenate economic development in the Kalaeloa area.

The steady economic recovery allowed for the reinforcement of the safety net. The Senate Majority is mindful of the struggles Hawaii’s most vulnerable citizens suffer and supports efforts to assist them. Child welfare, domestic violence shelters, MedQuest, and various shortfalls across the Department of Human Services were addressed in the State Budget. Non-profit organizations were also provided assistance for the continuation of services and community programs statewide.

The Senate has notably underscored education as a top priority. Through the State Budget, key investments were made in the weighted student formula, student meals, Community Schools for Adults and student transportation. The Senate believes early life experiences lay the groundwork for a child’s lifelong learning. Affordable and accessible high quality programs for all children are critically important for their success. Working in concert with the Governor’s Early Childhood Education Initiative, the Legislature passed a measure that establishes the Early Learning Council and the Early Learning Advisory Board. For higher education, funding was appropriated for much-needed capital renewal and deferred maintenance for the University of Hawaii system. Funding was also appropriated to address significant growth in student enrollment at the community colleges.

The Senate Majority strives to make Hawaii a model for the rest of the country by continuing the Hawaii Clean Energy Initiative. Realizing that reducing electricity costs depends in part on diversifying energy sources, the Senate passed bills addressing geothermal exploration. The Legislature also passed a measure that creates a regulatory framework for an interisland electric transmission cable.

In the area of technology, the Senate calls for investing in the State’s IT infrastructure to improve government and its services to the public. The State Budget makes significant investments in software upgrades, integration in information technology, and the modernization of databases, to name a few. The Senate also supports the Governor’s broadband initiative to enhance services and ensure that every citizen has access.

With many priorities accomplished, the Senate Majority still has a lot of work ahead and looks forward to continuing to serve the people of Hawaii.

Together, SB 2115 and SB 2116 strengthen Hawaii’s Charter School system by increasing accountability in the governance of Hawaii’s Charter Schools that will foster improved student outcomes. SB 2115 establishes clear lines of authority and clarifies the relationships, responsibilities, and lines of accountability among stakeholders of Hawaii’s Charter School System. SB 2116 appropriates funds to help with the transition.

“Thank you. While I have said that this bill is the culmination of almost a years worth of work- with it literally beginning with weekly meetings since July 20, 2011- it really began quite some time ago… 1994 to be exact, eighteen years ago, when the legislature took the first steps to create Charters, then called Student Centered Schools. So it is appropriate then- as Charter Schools figuratively come of age- that we move into a new era of Charter School governance. The creation of a system that is unique to our state in that it takes what has worked in the past, merged it with national models of best practice, and through active engagement with stake-holder groups has resulted in the bill you see before us today.

Ninety-one pages long, this measure has been tightened and changed throughout the process to address concerns and to anticipate future needs. Ninety-four amendments to be exact and I would be remiss if I did not take this opportunity to specifically thank one individual. I assure you , there are many people who need to be thanked for their work on this, but had it not been for Krislen Chun, our SMA attorney who worked with us on both the task force and this bill, getting to this point would have been nearly impossible.

So what does this bill do? Centered around the philosophy that autonomy plus accountability equals increased student achievement, this complete re-codification of our charter school laws provides schools with the flexibility they need to be innovative while maintaining the requisite level of accountability as these are public school students, and tax payer dollars. Examples of our efforts to balance autonomy and accountability can be found in many places, including our removal of the cap on the number of charter schools, coupled with a tightening of our application process, ensuring that only strong applications are awarded charter status.

We’ve strengthened the role of the authorizer and provided them with the authority and capacity to hold their charters accountable, while at the same time moving forward on a recommendation to provide schools with the flexibility and resources they need in regards to purchase of services and technical support. We’ve established performance contracts, which really are a bit of both, in that it holds schools accountability for meeting the indicators and metrics identified in both their contracts and annual performance targets, while providing schools with clear expectations and the ability to include rigorous, valid, and reliable indicators to augment external evaluations on their performance. We’ve changed the form and the function of what will now be of public charter school commission and governing boards at the school level, removing the constituency based nature of the members while allowing for the appointment of individuals with the specialized skill sets and understanding of charter schools needed to support a successful and thriving charter school system. And amongst the most controversial, at times, we’ve maintained charter schools exemption from various state laws, but made it clear that schools and their governing boards shall be subject to the state ethics code.

At every point, we have been explicitly redundant, requiring rule making and reporting, defining and highlighting, and yet we know the real work lies ahead in implementing and transitioning into this new system. And I would like to also thank the chair and vice chair of the Ways and Means committee for their support in the half-a-million dollars in transitions funding needed to see this through. It will not be easy, and I know that there is much anticipation and fear, but the measure we have before us puts in place a solid system of governance that will be good for all of our communities and for the students served by our charter schools.

I humbly ask for your support and consideration of this measure.”

To view video click here.

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 21^st 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.

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:

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.

City and County of Honolulu Department of Transportation Services’ (DTS) Director Wayne Y. Yoshioka will be discussing the department’s plans to improve public safety in lower Makiki, Ala Moana-Sheridan and Kaheka.  Legislators will present post-session legislative updates and other important information.

“This year was a very challenging one, with a wide range of bills affecting public schools, plastic bag recycling and enhanced public access through technology.  With our community in mind, we’ve  increased resources for neighborhood schools, health care, kupuna care and taken steps to rebuild safety net programs for the community,” said Senator Carol Fukunaga (District 11- Makiki/Punchbowl, Ala Moana, McCully). “We look forward to having a lively dialogue with residents and business owners on these matters,” added Representatives Rhoads.

The Kanunu/ Kaheka and Piikoi/ South Beretania intersections have been characterized as some of the most hazardous streets in urban Honolulu.  The two areas have been the site of 12 vehicle crashes.   Director Yoshioka will discuss various solutions to improve pedestrian safety.  DOT representatives will also discuss their recommendations on such measures as “Safe Routes to School” (HB 2626, CD1).

“Pedestrian and vehicle safety in our neighborhoods is of the upmost importance,” said Councilmember Kobayashi. “It’s essential that area legislators continue to work with the City and County to find solutions to help create a safe environment for all.”

Realizing that our State is heavily dependent on imported oil, Senator Solomon introduced several measures relating to alternative energy, intending to help bring down the cost of electricity. The following bills made it through the Legislative process and are awaiting the Governor’s consideration:

• Changes the Hawaii State Planning Act to include the development of geothermal energy resources on State Land.
• Amends the Hawaii State Planning Act to include promoting the development of geothermal energy resources that are located on State Land as a source of firm power to reduce the cost of electricity.
• Adopts utility and regulatory practices that will help ensure that Hawaii utilities are regulated by policies that are up-to-date, streamlined, subject to current information technology standards, and are transparent.
“The cost of electricity in the State of Hawaii is the most expensive in the nation. However, geothermal energy has proven to be an effective source of firm power energy. Therefore creating an environment that uses geothermal production will help save money for Hawaii residents,” said Senator Solomon.

While our economy is showing signs of stabilization, our unemployment rate is still high. The construction industry has been particularly hit hard during the recession. Senator Solomon has supported initiatives that would stimulate our economy and create jobs. In order to jump-start the economy, the Governor released $165M to fast-track long needed upgrade and repairs that will put people back to work:

• Lower Hamakua Ditch Watershed Project. Pa‘auilo Rending Plant & Slaughterhouse. Installation of a Hydropower plant as part of the Waimea Irrigation System. Waimea rubbish transfer station improvements. Waimea and Hilo Baseyard—Wastewater improvements.
• UH Hilo—Student Housing at University Village. UH Hilo—Living Learning Community, Hawaii Community College—Update the long range development plan. Palamanui West Hawaii Community College Campus.
• Capital Improvement Projects for Public and Charter Schools all over the island.
• Hale Ho‘ola Hamakua Hospital — repair and maintenance. Kona Community Hospital-Planning and upgrade projects for design and construction and installation of two new generators.
• Arc of Hilo for the construction of Client Support Services Community and Training Center.

Senator Solomon also supported measures that the Senate put forth in modernizing our information technology infrastructure:

• Broadband initiatives to improve services on neighbor islands so every citizen has access. Enhanced communications to improve business opportunities.
• Modernizing the information technology for the Department of Human Services— reducing fraudulent claims resulting in taxpayer savings.

“The internet has made it possible for people to have access to information from all over the globe. As part of the broadband initiatives, I supported enhanced internet services that will help improve connection to the neighbor islands so every citizen has access to help businesses expand their connections globally,” said Senator Solomon.

As a third generation farmer-rancher, Senator Solomon is deeply committed to the preservation and perpetuation of agriculture, which is rooted in our State’s heritage and future. She was involved in the following measures related to agriculture:

• In 1994, Senator Solomon introduced a bill that became Act 264, establishing the Agribusiness Development Corporation (ADC). In 2011, she co-sponsored a bill, which was also signed into law, which would establish the Public Land Development Corporation (PLDC). Both laws bring together private and public sector participants to form an alliance that will bolster economic recovery, promote recreational activity in such areas as the Honokohau Harbor and revitalize tourist destinations such as Banyan Drive in Hilo.
• Senate Resolution 46 (Solomon) passed in 2011, requests the Governor to ensure that Chief Procurement Officers comply with the Hawaii Procurement Code preferences to buy local products, promote the growth of the State’s agriculture business and assure food safety and sustainability for Hawaii.
• A bill introduced by Senator Solomon that relates to public land was signed into law. It requires the Department of Land & Natural Resources to establish a public lands information system and database.?
When it comes to advancing Native Hawaiian rights, Senator Solomon supported several measures. A couple has been enacted into law:
• The Native Hawaiian Recognition Bill was signed into law in 2011. This historic law, co-sponsored by Senator Solomon, is another step towards the federal recognition of Native Hawaiians.
• Act 15, which resolves ceded land claims with the Office of Hawaii Affairs was signed into law on April 11, 2012. This settlement has no effect on claims related to sovereignty, or claims related to ceded lands receipts after July 2012.

Members of the Council, along with Legislators, County Mayors and representatives from the Federal government are expected to attend the meeting. Topics that will be discussed include: Axis Deer on Maui, invasive species, weed risk assessment and the Council’s priorities for the fiscal year 2013.

It is important for us to discuss and assess the status of invasive species on Maui in order to protect and preserve our island and the rest of Hawaii’s ecosystem,” said Senator J. Kalani English, who is a member of the Invasive Species Committee and will be attending the meeting.

The Hawaii Invasive Species Council (the Council or HISC) was established for the special purpose of providing policy level direction, coordination, and planning among state departments, federal agencies, and international and local initiatives for the control and eradication of harmful invasive species infestations throughout the State [of Hawaii] and for preventing the introduction of other invasive species that may be potentially harmful.

Following the meeting, the Council will be going to the Maui Invasive Species Committee office to learn about technology being used in the fight of invasive species and they will be touring Kula farms to observe damage caused by the axis deer.

I am looking forward to learning about new ways to combat alien species and seeing first-hand how our farms are being impacted by the axis deer and how we can help our farmers with the issue,” said Senator English, who represents District 6 (Hana, East and Upcountry Maui, Moloka‘i, Lana‘i, and Kaho‘olawe).

One class group was interested in the issue of overdevelopment and its impact on Hawaii’s agricultural land and industry. Supporting the original version of Senate Resolution 104, the class asked for Senator Fukunaga’s support and input. In the resolution’s original form, it urged the counties to revise laws to reflect strategic land use practices for main street redevelopment in existing towns that support public transportation in order to accommodate the growing population of the State. As part of her answer, Senator Fukunaga explained how the original intent and concept of a measure can be altered through the legislative process.

To view Senator Fukunaga’s answer click here.

Another class group was interested in helping to solve the problem of coral damage through the prohibition of selling aquatic life for aquarium purposes. The class supported Senate Resolution 2, a measure which requested the Legislature to amend Chapter 188 (Hawaii Revised Statutes) by adding a new section to be appropriately designated to prohibiting the sale of aquatic life for aquarium purposes.  It also requests the Legislature to amend the existing section 188F-4, regarding the West Hawaii regional fishery management area plan, and section 189-11, regarding receipts in management area plan, and section 189-11, regarding receipts in duplicate.  In addition to those requests, the resolution asks the Governor to issue a moratorium on the commercial take and sale of aquatic life taken for aquarium purposes from State waters and the Hawaii Department of Land and Natural Resources.

To view Senator Fukunaga’s answer click here.

Interested in the impact overdevelopment of the North Shore may have on Oahu’s rural areas, small business owners, and Hawaii’s culture, one class group supported Senate Bill (SB) 1444. SB 1444, would have required the Department of Land and Natural Resources to develop a plan for the improvement of the water quality in Lake Wilson.

In working to find ways to resolve the problem, the class provided several creative solutions, including: the creation of educational television and radio commercials addressing the issue and development of collaborative contracts with local North Shore businesses to offer specialty bracelets to help show support.

To view Senator Fukunaga’s answer click here.

Hawaii State Legislature Regular Session of 2012 Legislative Statistics as of May 3, 2012

*Act total includes HB 1868 HD1 & HB 2537 HD2 which became law without the Governor’s signature.

**Passed total includes HB 2594 HD2 SD1 CD1 & SB 650 HD1 which propose to amend the Constitution of the State of Hawaii.