Gov. David Ige today announced that furloughs and layoffs are no longer necessary now that President Joe Biden has signed the $1.9T American Rescue Plan, also known as the COVID-19 relief bill. The sweeping pandemic relief package aims to defeat the COVID-19 virus and breathe life into the economy. The legislation means that the State of Hawai‘i and four counties will receive about $2.2 billion in assistance to bolster state and county budgets that have sustained significant tax revenue losses because of the pandemic. Here is the breakdown: • $1.6 billion for the State of Hawai‘i • $365 million for the City and County of Honolulu • $36 million for the County of Hawai‘i • $13 million for the County of Kaua‘i • $30 million for the County of Maui The state will also receive an additional $116 million for critical capital projects for pandemic response in education and healthcare. “This new infusion of federal funding gives the state much needed breathing room so that layoffs and furloughs are no longer necessary in the foreseeable future. We must still assess all impacts of the COVID-19 relief bill before we have a clearer picture of its effect on the state budget,” said Gov. Ige. The relief package expands unemployment benefits through Sept. 6 with $300 a week from the federal government. The bill also provides a 100% subsidy of COBRA health insurance premiums so that laid-off employees can remain on their healthcare plans through September. In addition, the package will provide $1,400 for qualified single taxpayers, $2,800 for qualified married couples that file jointly, and $1,400 for each dependent. The relief package will also provide significant federal funding for: • Education, both the Dept. of Education and the University of Hawaiʻi; • The Dept. of Health for the COVID-19 response, such as vaccinations, public health programs, and mental health and substance abuse programs; • SNAP, childcare and Medicaid programs; and • Rental and mortgage assistance. H.R. 1319 – American Rescue Plan Act of 2021 can be found at https://bit.ly/3bC4EQM

The County of Maui Department of Finance’s Real Property Assessment Division announced today that a new long-term rental classification and exemption have been established as part of the Maui County Code. Effective Jan. 1, 2022, real property occupied as a long-term rental, with a signed contract to lease for 12 consecutive months or longer to the same tenant, may qualify an owner for an exemption of up to $200,000. Real property rented on a long-term basis (12 consecutive months or longer) without a home exemption, will be eligible for the $200,000 long-term rental exemption and will be classified as Long-term Rental. Real property with a home exemption that also qualifies for the long-term rental exemption will be eligible for an additional $100,000 exemption and will be classified as Owner-occupied. The long-term rental exemption may be allowed on more than one home if located on separate parcels. If a portion of the property is used for commercial purposes, that portion will not be entitled to a long-term rental exemption. If the property taxes are delinquent for more than a year, no long-term rental exemption will be allowed. Any change in the actual use of real property with a long-term rental exemption must be reported by the owner within 30 days of that change. The long-term rental exemption application form can be found at www.mauipropertytax.com. The application form must be filed by Dec. 31, 2021, along with a signed copy of a lease contract, to qualify for the 2022 tax year. Property owners may contact the Real Property Assessment Division by calling (808) 270-7297 with any questions, or by email at rpa@co.maui.hi.us

The Department of Business, Economic Development and Tourism (DBEDT) released its first quarter 2021 Statistical and Economic Report today. DBEDT projects that Hawai‘i’s economy will experience improvement in 2021, with a projected 2.7 percent increase in real gross domestic product (GDP). This is higher than the 2.1 percent GDP growth projected in December 2020. While final estimates of economic growth have not been released yet, DBEDT estimates that Hawai‘i’s real GDP fell by approximately 7.5 percent in 2020, a smaller decline than the 11.7 percent contraction forecast in the previous quarter. The improvements in the economy were attributed to the following facts and expectations: • Public, private, non-profit entities and individuals in Hawai‘i were allocated more than $10.6 billion in federal funds in 2020. • The second federal economic stimulus package of $900 billion provided qualified individuals with a $600 stimulus check, extended the supplemental $300 weekly unemployment benefit, and allocated additional funds for the Paycheck Protection Program. Furthermore, legislation is being considered for a third stimulus package of $1.9 trillion, that includes an additional $1,400 stimulus checks for qualified people. Hawai‘i is expected to receive more than $7 billion federal funds in 2021. • The Safe Travels Program brought in 496,186 visitors in the fourth quarter of 2020, representing a recovery of about 20 percent from the same period in 2019. By comparison, visitor arrivals between April and September 2020 were only 1.8 percent of the same period a year earlier. • Visitor industry recovery continued into 2021 with 20 percent recovery in January (average daily visitors at 5,550) and 30 percent recovery in February (average daily visitors at 8,760) as compared with the same month in 2019. • The total number of bankruptcy filings in Hawai‘i declined 8.5 percent in 2020 from 2019, and decreased 24.8 percent in Jan. 2021. • Initial unemployment claims during the week ending Feb. 20, 2021 was 2,891, the lowest since Mar. 21, 2020. • The U.S. economy is expected to recover faster in 2021 with an economic growth rate projected at 4.9 percent in the February 2021 Blue Chip Indicators, which is higher than the projection made in December 2020 for 2021 at 4.0 percent. • Hawai‘i remained the lowest per capita new COVID-19 cases in the nation as of Feb. 28, 2021 and both the national and Hawai‘i new cases have declined over 50 percent in the past 30 days. • As of Feb. 28, 2021, 17.5 percent of Hawai‘i’s population had been vaccinated at least with one shot, higher than the U.S. average at 15 percent. Current economic conditions According to the Bureau of Economic Analysis (BEA) recent estimates, Hawai‘i’s real gross domestic product fell by 8.2 percent in the third quarter of 2020, from the same quarter of the previous year. Compared to the second quarter decline of 13.9 percent, this was a substantial improvement. While tourism is projected to recover as vaccine distribution increases, conditions remain challenging. This was reflected in the real GDP decline for tourism-related industries in the third quarter compared to the same quarter of the previous year: GDP for Arts, Entertainment and Recreation declined 50.9 percent, Accommodation and Food Services declined 43.7 percent, Transportation and Warehousing declined 21.7, and Wholesale Trade declined 11.1 percent. Retail Trade fared better than other tourism-related industries, with a decline of 3.5 percent in the third quarter. One area of strength in retail was home-related spending. It appears that, as consumers spent more time at home, they focused on home improvement. According to U.S. Census Bureau’s latest monthly retail data, home-related store sales showed significant gains in October 2020 over the same month of the previous year; particularly in Furniture and Home Furnishings (+19.3 percent), Building Materials (+16.1 percent), and Electronics and Appliance were (+8.8 percent). Consumers also spent more on dining at home, with Food and Beverage store sales up 28.3 percent in October over the same month of the previous year. The construction industry held firm in the third quarter, with a comparable GDP level to the same quarter of the previous year (-0.1 percent). At the end of the year, the value of building permits picked up, increasing 21.9 percent in December over the same month of the previous year. The December increase in building permit values was led by Residential (+43.3 percent); followed by Commercial and Industrial (+32.0 percent) and Additions and Alterations (+6.5 percent). Despite the pandemic, Utilities had strong GDP growth in the third quarter, increasing 10.2 percent over the same quarter of the previous year. Other industries that grew in the third quarter were Finance and Insurance (+7.3 percent), Military (+3.3 percent), and Federal Civilian (+2.7 percent). Initial unemployment claims totaled 2,891 for the week ending Feb. 20, 2021, an increase of 181.5 percent from the same period a year earlier. The state ended 2020 with a 9.0 percent unemployment rate in December, which was an improvement over the 10.4 percent rate of November. There were 92,400 fewer non-agriculture private payroll jobs in the fourth quarter of 2020 compared with the same quarter of 2019. The decline in jobs was the highest for Accommodation (-26,300 jobs or a 61.9 percent decrease), Food and Drinking Places (-23,900 jobs or a 33.9 percent decrease), Transportation, Warehousing & Utilities (-8,800 jobs or a 25.3 percent decrease), Professional & Business Services (-8,500 jobs or a 11.3 percent decrease), and Arts, Entertainment, and Recreation (-3,700 jobs or a 27.4 percent decrease). While Hawai‘i’s economy is predicted to grow in 2021, the current DBEDT forecast projects that it will take a few years to fully recover to pre-pandemic levels and businesses will continue to face challenges. A survey conducted in December 2020 by DBEDT and 16 private partners indicated that 81.3 percent of Hawai‘i businesses expected loss of business revenues in 2021. For the overall U.S. economy, initial BEA estimates indicate that the real GDP declined 3.5 percent in 2020 compared with the previous year. However, a strong rebound is expected for 2021. The Blue Chip Economic Indicator economist consensus report is forecasting a 4.9 percent increase in U.S. real GDP. For the global economy, all countries will have firm GDP growth in 2021 including Canada (+4.6 percent), Taiwan (+4.3 percent), South Korea (+3.4 percent), and Japan (+2.5 percent). The Euro area’s real GDP is predicted to increase at 4.4 percent in 2021 over the previous year. Forecasting Results For 2021, DBEDT predicts that Hawai‘i’s real gross domestic product (GDP) will increase 2.7 percent over the previous year. The economic expansion path will continue with a 3.3 percent increase in 2022, 2.3 percent in 2023 and 1.8 percent in 2024. Hawai‘i is forecast to welcome 5.5 million visitors in 2021, an increase of 102.9 percent from the 2020 level. Visitor arrivals are projected to increase to 8.3 million in 2022, 9.2 million in 2023, and 9.8 million in 2024. Visitor arrivals are not expected to reach 2019 levels until 2025. Non-agriculture payroll jobs are forecast to increase by 6.2 percent in 2021, then will increase by 3.1 percent in 2022, 1.6 percent in 2023 and 1.3 percent in 2024. As with GDP growth, non-agriculture payroll jobs are not expected to recover to pre-pandemic levels until 2025. The state unemployment rate will gradually improve as economic growth returns. The rate is projected to be 8.2 percent in 2021, 6.9 percent in 2022, 6.2 percent in 2023, and 5.7 percent in 2023. These rates are much higher than the average Hawai‘i unemployment rate of 2.5 percent between 2017 and 2019. Nominal personal income is expected to decrease in 2021 by 2.9 percent, following a 7.5 percent increase in 2020. Normally, GDP and personal income move in tandem. However, in 2020, personal income surged due to government transfers related to unemployment insurance payments and other CARES ACT funds, which more than offset declines in wages and salaries. As measured by the Honolulu Consumer Price Index for urban consumers, inflation is expected to increase in 2021 to 2.0 percent, from 1.6 percent in 2020 and remain around this level through 2024. During the second half of 2020, Honolulu consumer inflation was 1.6 percent; the categories that increased the most were Food & Beverage (+6.9 percent), Recreation (+4.5 percent), and Education and Communication (+4.2 percent). The categories that decreased the most were Apparel (-7.1 percent), Transportation (-5.2 percent), and Other Goods and Services (-1.8 percent). Statement of Director Mike McCartney “It has been one year since the onset of COVID-19 and it’s been a tough and challenging time for all of us. I can see positive and encouraging signs ahead for Hawai‘i’s economic prosperity with Hawai‘i’s Safe Travels program fully in place and the aggressive rollout of our statewide vaccination program, coupled with the fact that we have the lowest number of new COVID-19 cases in the country. The emergence and resilience of our kama‘āina economy is hopeful with O‘ahu now transitioned to Tier 3, which means more commerce and community activity and the expected infusion of $10 billion in federal stimulus available in 2021.We must continue on this path of attacking the virus, respecting and not fearing it, then reopening our public schools and welcoming visitors back to a different and refreshed Hawaiian Islands. It’s our opportunity to be open to candid community discussions, to co-create a new future, a Hawai‘i 2.0 that is more resilient, diversified and sustainable so the generations that come after us can also choose to call Hawai‘i home. Given all these signs, I am now more optimistic about Hawai‘i’s social, environmental, and economic prosperity in the future.” The full report is available at: dbedt.Hawai‘i.gov/economic/qser/.

The severe weather and consequent flooding across the state serves as a stark reminder that disasters can strike at any time of day, and any time of year. The Hawai’i Emergency Management Agency (HI-EMA) encourages every citizen to take steps right now to prepare for any emergency and protect your ohana and property. Floods are one of the most common hazards in Hawai’i During heavy rains, or human-made structure failures such as a dam breach, flash flooding can occur quickly and without warning. Be prepared to evacuate and move immediately to higher ground. Do not wait for instructions to act. Do not cross fast flowing water in your vehicle or on foot – Turn around, do not drown! Contact your property/casualty agent or broker about flood insurance, which is offered through the National Flood Insurance Program. Sign up for Emergency Notifications Please visit https://dod.hawaii.gov/hiema/get-ready/ for links to each County website for free text-based notifications for the latest updates on natural and human-caused emergencies and disasters. Make a Plan Plan escape routes – ensure all family members know where to go and how to get out. Meeting place – choose a physical location to meet if communication between family members is down. Family communication – identify a family member who lives out-of-state who everyone can notify when they are safe. Pack a 14-day ‘Go-Kit’ for your family Change of clothes and sturdy shoes 1 gallon of water per person per day Non-perishable foods Face coverings, gloves, and sanitizer First aid kit Battery powered or crank powered radio Flashlight Batteries Manual can opener Hygiene supplies Whistle Important documents

The County of Kaua‘i and the Hawai‘i Department of Health are pleased to announce two additional COVID-19 vaccination clinics for eligible frontline essential workers, where they will offer the single-dose Johnson & Johnson vaccine. The appointment-only clinics will be held on March 15 and March 22, from 8 a.m. to 1 p.m., at the Kaua‘i War Memorial Convention Hall. Frontline essential workers who have received an email from the Department of Health to register for vaccine and schedule an appointment are eligible for these new dates. • If you would like a single-dose Johnson & Johnson vaccine, you must sign up for the "J&J Clinic" on March 15 or March 22. If you would like the two-dose Moderna vaccine, please register for the "Moderna Clinic" on Tuesdays, Wednesdays, or Thursdays. • If you already received a first dose of the Moderna or Pfizer vaccines, you must complete your series with the same vaccine; you are not eligible to receive a dose of the Johnson & Johnson vaccine. • If you have an upcoming appointment scheduled for a first dose of the Moderna vaccine at the Convention Hall, you can cancel your appointment and switch to a Monday date offering the Johnson & Johnson vaccine. Log back into VAMS, cancel your appointment, and then reschedule. You would select a Monday “J&J Clinic” rather than a Tuesday-Thursday “Moderna Clinic.” All three vaccines currently approved are highly effective at preventing severe illness, hospitalization, or death due to COVID-19. Learn more about the different vaccines at cdc.gov/coronavirus/2019-ncov/vaccines/different-vaccines.html The Department of Health-run clinic at the War Memorial Convention Hall is for only for frontline essential workers who are eligible for vaccine because of their employment. If you think you are eligible but have not received an email from the Department of Health, please check with your employer. If your employer is unable to provide you with information about your vaccine eligibility, you may complete the brief survey at kauai.gov/vaccine. If you don’t hear back within a week via email, you do not meet the current eligibility criteria. We will hold on to your information until you qualify. The Convention Hall clinic is an appointment-only clinic. Please do not walk up and expect to be vaccinated. Meanwhile, Kaua‘i hospital clinics and Longs Kapa‘a continue scheduling appointments for kūpuna aged 70 and older. Links for kūpuna sign-up are available at kauai.gov/vaccine. Visitors to Kaua‘i are NOT eligible to receive COVID-19 vaccine. Supply is for residents only.

Flood waters destroyed Peahi Bridge and heavily damaged Kaupakalua Bridge in Haiku, Mayor Michael Victorino said. At least a half dozen homes were heavily damaged or destroyed. “This has been unprecedented flooding, and we will be making damage assessments today,” Mayor Victorino said. “I ask everyone to stay vigilant and be safe.” Residents who were evacuated from their homes yesterday are asked not to return until there is an “all clear” announcement. The evacuation remains in effect for residents in the vicinity and downstream of Kaupakalua Dam. People also are advised to stay off roads as much as possible and exercise extreme caution, watching out for debris and landslides. Also, beware of possible downed power lines. Stay at least 30 feet away from downed power lines and assume they are energized and dangerous. Reports of downed lines should be made by calling Hawaiian Electric’s trouble line at 871-7777. A power outage was reported today in Haiku at 6:12 a.m., affecting more than 1,300 customers. East Maui Irrigation Co. officials monitored the Kaupakalua Reservoir overnight. Water levels remained above normal, but roughly 3 feet below the top of the dam. An evacuation shelter at Paia Community Center remained open as of 7 a.m. today. Shelters at Hana High School and Eddie Tam Memorial Center were closed. To report any storm-related damage, go to the County of Maui home page at mauicounty.gov and fill out a damage report form. Or, call the Maui Emergency Management Agency at 270-7285. Most Maui County parks on the island of Maui have reopened this morning. The only county parks that remain closed are Baldwin Beach Park and Kepaniwai Heritage Gardens in Iao Valley. Yesterday, all Maui island parks were closed because of flooding and heavy rains. For emergency information, contact the Maui Emergency Management Agency at (808) 270-7285.

Gov. David Ige signed an emergency declaration for the entire State of Hawai‘i as heavy rains are causing flooding, landslides and fear of dam failure, prompting evacuations in at least two counties. In Maui County, heavy rains completely washed out the Peahi Bridge on Peahi Road, and displaced the Kaupakalua Bridge on Kaupakalua Road, making the roads impassable. There is also damage to other roads and bridges on the Valley Isle. Across the state, saturated ground conditions and increased water levels in reservoirs have increased the risk of erosion, seepage, piping and fear of dam failure. The emergency declaration covers the counties of Hawai‘i, Maui, Kalawao, O‘ahu and Kaua‘i. It gives the governor the authority to spend state funds as appropriated to protect the health, safety and welfare of residents and visitors in the State of Hawai‘i. The declaration supports the state’s efforts to provide quick and efficient relief of suffering, damage, and losses caused by flooding and other effects of the heavy rains. The disaster emergency relief period continues through May 8, 2021.

Senate Majority Leader J. Kalani English (Senate District 7 – Hāna, East and Upcountry Maui, Molokaʻi, Lānaʻi and Kahoʻolawe) and Representative Lynn DeCoite (House District 13 – Haʻikū, Hāna, Kaupō, Kīpahulu, Nāhiku, Pāʻia, Kahoʻolawe, Lānaʻi, Molokaʻi and Molokini) issued the following statement on the extreme flooding from Kaupakalua Dam in East Maui: “We’ve been in constant communication with County and State authorities to ensure the safety of residents and visitors near Kaupakalua Dam and in other areas of East Maui. We are encouraging people to stay put and seek immediate refuge at the designated evacuation shelters if you are in in vicinity of Kaupakalua Dam and the makai areas of Kaupakalua Road. Do not return to the impacted areas until there is an “all clear” from local officials.” With the reopening of Hāna Highway, travelers are advised to proceed with extreme caution as weather conditions can change quickly. We will continue to monitor this situation throughout the evening.”

The state is assisting Maui County as residents and visitors downstream of the Kaupakalua Dam evacuate at this hour. The health and safety of our residents and visitors in Haiku and surrounding areas remain our top priority as heavy rain is posing a potential threat to the dam. The state and county are closely monitoring the situation. Please stay out of the area until the danger has passed and continue to monitor local media for updates.

$1.9 million available under program The Hawai`i Department of Agriculture (HDOA) is now accepting applications for the Micro-Grants for Food Security Program, which provides support for small-scale gardening, herding and livestock operations to help produce food in areas that are insecure. In August 2020, the U.S. Department of Agriculture (USDA) awarded Hawai`i a total of $1,938,556.80 for this grant program which was established under the 2018 Farm Bill. Information on the Request for Proposals may be found at the Hawai‘i State Procurement website at: https://hands.ehawaii.gov/hands/opportunities/opportunity-details/20023 . The maximum award for an individual is $5,000 for a project of 12 months, $2,500 for a six-month project. Under the grant program rules, religious organization, food banks and food pantries may also apply. Applications/proposals must be emailed to hdoa.addrfp@hawaii.gov and received by noon, April 23, 2021. “Through the pandemic, there has been an increase in backyard and small-scale farming which has helped families to economically supplement their basic food needs,” said Gov. David Ige. “This grant program presents a unique opportunity to support subsistence agriculture in Hawai`i.” “Small-scale farmers and food gardens are often left out of federal funding programs,” said Phyllis Shimabukuro-Geiser, chairperson of the Hawai`i Board of Agriculture. “In these cases, we know that a little support can go a long way to help food security for our families and communities.” Examples of the types of activities that may be funded under this grant include Small-Scale Gardening – purchase tools or equipment, soil, seeds, plants, canning equipment, refrigeration, composting equipment, towers, hydroponic and aeroponic farming. Small-Scale Herding and Livestock Operations – purchase animals, buy, erect or repair fencing for livestock, activities or supplies associated with setting up or equipping a slaughter and processing facility, including purchasing mobile slaughterhouses. Expanding Access to Food and Knowledge of Food Security – create or expand avenues for the sale of food commodities – includes paying for shipping of purchased items related to growing or raising food for local consumption. Additional information, including Frequently Asked Questions, are available at the grant portal at: https://hands.ehawaii.gov/hands/opportunities/opportunity-details/20023 To assist interested parties with the application requirements, a Zoom webinar has been scheduled for: Tuesday, March 16, 2021 at 10:00 a.m. https://zoom.us/j/98372262871?pwd=MklnZWFMTXlsbXhjLzFIYXZLMHVEQT09 Meeting ID: 983 7226 2871 Passcode: HDOAMDB Information and a recording of the webinar will also be posted at: https://hdoa.hawaii.gov/add/md/ Eligible proposals will be reviewed by a panel in each county and awards are expected to be announced in May 2021, with first disbursement of funds expected in July 2021. Questions regarding the application process may addressed to HDOA’s Market Development Branch at (808) 973-9595 or email: hdoa.addrfp@hawaii.gov

The Department of Health State Laboratories Division (SLD) has detected a new variant of concern. This new strain has the technical name B.1.351 and is sometimes referred to as the South African variant. It was found in an O‘ahu resident with no travel history. “This is concerning because B.1.351 has a mutation that makes it more transmissible from one person to another, and a separate mutation that might make it less responsive to the antibodies we form when we have COVID or get vaccinated,” said SLD Director Dr. Edward Desmond. The mutation that increases transmissibility is called N501Y. The mutation that may reduce effectiveness of antibodies is called E484K. The N501Y and E484K mutations had previously been seen in Hawai‘i, but this is the first time both mutations have been found together in one virus. “While theoretical concerns have been raised about whether vaccination will be effective against new variant strains, the real-world data so far are reassuring” said Acting State Epidemiologist Dr. Sarah Kemble. “A study in South Africa showed the Johnson & Johnson vaccine was effective in preventing serious disease requiring hospitalization and in preventing death even where B.1.351 was the predominant strain.” Two new cases of the B.1.1.7 variant, also known as the U.K. variant, also have also been found, for a total of eight B.1.1.7 variant cases detected in the state to date. This variant, first detected in Hawai‘i in early February, has the N501Y transmissibility mutation, but not the E484K mutation. The most recent cases of B.1.1.7 involve two O‘ahu residents, one who traveled to the mainland United States and a household contact of that individual. Investigation into cases of recently detected variants is ongoing. Close contacts have been quarantined. “Research shows community mitigation measures are effective in reducing the risk of transmission of even the most aggressive variants,” said State Health Director Dr. Elizabeth Char. “This means wearing masks, maintaining physical distance and washing hands is more important than ever. The effectiveness of vaccines in preventing serious illness or death means we should get vaccinated as soon as it is our turn.” The SLD continues to perform genomic sequencing weekly on COVID samples from across the state in order to detect variant strains including strains of concern. This systemic search for variant strains is accomplished with the collaboration of private sector laboratories, to whom the SLD is grateful.

Evacuations have been ordered for everyone downstream of Kaupakalua Dam in Haiku. Heavy rains have led to the dam cresting. Evacuation shelters are being opened at the Paia Community Center and Hana High School. People need to stay away from the area. More information will be provided as it becomes available.