A strong economy is at the foundation of a stable community, state and nation. Today, we are struggling with the painful effects of an economic crisis, the likes of which have not been experienced since the Great Depression. The first goal must be to halt, as best we can, the downward economic spiral, to stabilize, and then to begin the long process of recovery – restoring confidence in the marketplace and hope at work.
As Chairman of the Senate Appropriations Committee, working with the House and the Obama Administration, I tried my best to craft the American Recovery and Reinvestment Act of 2009 to put people back to work, invest in critical infrastructure such as roads and schools, prevent cuts to basic services, reduce the tax burden on working families, and then to position our nation for the future in the areas of renewable energy and broadband connectivity that will help enable our economy to thrive once again. Throughout this whirlwind of discussion and debate, compromise and concession on the stimulus plan in our nation’s capitol, I always had one eye firmly on my beloved Hawaii to be sure that we not only got at least our fair share, but have a strategic plan of action to compete for additional federal funds that we desperately need to put Hawaii back on more solid economic footing.
The total formula funding for Hawaii in the Economic Stimulus package is $718 million. This includes funding for roads, public housing, wastewater systems, education and social services. In addition, Hawaii will also receive $520 million to our federal agencies for among other things, military construction projects, increased healthcare services at the community healthcare centers, harbor dredging, federal building upgrades, National Park Service and Fish and Wildlife Service property upgrades, and airport security investments. I am also awaiting the public announcement by the National Science Foundation for $150 million to build the ATST, the largest solar telescope in the world, atop Haleakala. This will be a boost to Maui’s economy and its scientific community. The federal economic stimulus investments will continue.
Lastly, Hawaii is benefitting from tax-related benefits including $30 million to pay for additional unemployment compensation benefits; $360 million to increase the federal share of Medicaid payments; and $300 million in reduced tax burdens for about 500,000 workers in Hawaii. To date, the federal investment through the American Recovery and Reinvestment Act has already exceeded $2 billion. (Learn More)
Hawaii has not been sheltered from this economic recession. Our unemployment rate of 7.4%, as of May, 2009, has not been this high in a decade, not since December 1997. Our bankruptcies are up, as are our foreclosure rate, although not as great as the national average. In the first quarter of 2009, our hotel occupancy, a key indicator of the health of our tourism industry, fell to 69.9% with Oahu at 72.6%, Maui at 69.2%, Kauai at 65.1% and the Big Island at 58.9%. The break even is generally in the low 60th percentile, depending on the debt service a particular property is carrying, and whether it is a luxury or economy hotel.
However, through it all, we cannot and must not give in to despair, and not give up on our dreams. We are all in the same canoe – we will rise or sink together. While there is no quick fix or easy answer, let us persevere and lean forward together with determination and optimism for better tomorrows.
