2009 will be on of the most challenging times in history. 

We have immediate fiscal problems. Difficult decisions must be made. High degree of uncertainty.

Future needs…

• Energy independence
• Food self-sufficiency
• Future and current infrastructure upgrades
• Health care

Cannot hunker down. Must focus on immediate opportunity. Will take patience and courage. Duty to live within our means and position for a bright future.

Review of some solid progress…

• Home ownership
• 9 new emergency shelters and homes
• Nearly 2800 people have received shelter, outpouring of community support. This was done in 2.5 years. Thanks to everyone.
• Successes of Dept of Hawaiian Home Lands (DHHL). Donated more land than any other time. 
  • DHHL has chosen to lead. 
  • Showing how to develop community, work on energy independence and build great communities.
• Helping those in need
  • Hawai`i’s keiki
  • Child welfare systems
    • 50% decline of number in care- lowest number since 1993
    • Child re-abuse rate drops by half
  • DHS now uses comprehensive system for determining intervention

Deep hole in the budget…

• Council on general fund revenue projection reduced by 1.4 billion
• Tourism, construction and consumer demand all down
• Refrain from playing the blame game, wasn’t caused by us
• We’ve been doing great things
• We’re all in this together

Need courage, compassion and collaboration to cope with budget gap. May not see all issues the same but we need to acknowledge the predicament and move ourselves forward.

No possible way to continue spending like we have. We must be open and honest about what we’re facing.

We can’t afford business as usual.

• Gov employees must deal with reductions
• Tax credits will be reduced or eliminated
• Shared sacrifice, everyone must give up something

We are not alone. Families and businesses across the county and throughout the state are coming to terms with the same situation.

We will all recover…

• The speed will depend on this session.
• Must prepare the way for our future. 
• Short term solutions are just as bad as no solutions.
• Must end our dependence on foreign oil
  • We remain most oil dependent state
  • Windmills are working
  • geothermal is working
  • solar is working
  • electric cars on Oahu

Hawai`i clean energy initiative (HCEI requires 70% clean energy by 2030)

• Ban any new fossil power plants in Hawai`i
• New proposals will form the basis for Hawai`i’s clean energy transformation
• Requires large measure of collaboration

A clean energy future is an absolute necessity for our longterm economic survival.

• Future generations have a right to expect energy security 
• Right to expect higher paying green collar jobs
• Right to expect us to stop buying foreign oil

We import 85% of everything we consume.

• We need to act now for food security as required by our state constitution
• We must increase efforts to protect best ag lands from development
• Provide affordable water for agriculture
• Increase our food self sufficiency
  • This will create 2300 new jobs.
  • Schools, hospitals, government should buy local
  • 15% price help for farmers selling local

Need to diversify our economy

• Advanced communication infrastructure backbone
  • Essential to create high paying jobs we strive for
  • Today barely meets current needs
  • Must lay the ground work now
  • Allows us to achieve educational benefits, health care diagnostic research and treatment, increase civic participation, build creative media, e government initiatives and a foundation for overall economic development
• Broadband task force -voice data network to the homes
  • Task force consolidates advocacy and regulation
  • New Hawaii communications commission
    • Funded from existing fees
    • Creating more affordable broadband access
    • Helps streamline processes
  • Achieve prices and speeds that make us a world leader by 2012
    • Empower residents with advanced communications
    • Broadband taskforce has done this over the last 2 years

Traffic is still a problem…

• 6 year multi island highway modernization plan
• Save lives, time and money
• Road buildings, bridge, maintenance
• Increased public outreach and communication
• Stimulus funding and increases in highway related taxes and fees based on new job growth

Recreational Renaissance

• Parks harbors and trails
• 240 mil over 5 years in capital improvements
• Funded by 
  • Rents from commercial properties
  • Development of new light industrial lands
  • Additional funding from leases in concessions in parks, harbors and small entry fees
  • Development of new land and ocean recreation opportunities - public / private efforts
  • On Oahu, 119 acres light industrial, new marina slips, boat ramps, storage dry docks

Special thanks to Budget and Finance, DBEDT, DLNR

Not business as usual at DLNR.

Ceded Lands Issue

• Case pending before us supreme court ceded lands
• Not about whether lands should be sold or not… 
• Fundamental question is whether state has clear title to the lands. 
• Roots date back to 1980s to sell certain ceded lands for affordable housing 
• Acting in the best interest of all people.

Come together and respect the nature of this case and what it means to our state.

• 50th anniversary as a state
• Time to remind ourselves that we should remain firmly anchored to our rich cultural history and diversity.
• Barack Obama from Hawaii -says change good. 
• So much to be proud of and so much to look forward to. 
• Most unique among all fifty states.