GOVERNOR LINGLE SIGNS LEGISLATION TO PROMOTE SCIENCE, TECHNOLOGY, ENGINEERING AND MATH (STEM) EDUCATION AS PART OF HAWAI‘I INNOVATION INITIATIVE

For Immediate Release:  May 30, 2007

HONOLULU – Governor Linda Lingle today signed a key piece of legislation into law that will help transform the state’s economy from one based on land development to one based on innovation and developing Hawai‘i’s human capital.  She also approved a measure to lower the unemployment insurance payments for businesses.  The Governor signed the two bills in Lihu‘e during a Kaua‘i Chamber of Commerce luncheon meeting.

SB885 SD2 HD3 CD1 (Act 111) supports the Lingle-Aiona Administration’s Hawai‘i Innovation Initiative, which includes providing Hawai‘i students with world-class analytical and problem-solving skills developed through science, technology, engineering and math (STEM) education. 

“The programs established under this bill are part of a long-term effort to develop the innovation capacity of Hawai‘i’s workforce, particularly the younger generation, in order to successfully compete in the global economy,” said Governor Lingle.  “These initiatives, especially the STEM-related programs, focus on creating life-long learning and skill-building opportunities for students, teachers and our existing labor force.”

This measure establishes career and technical programs in a variety of fields, including engineering, computing, robotics and project EAST (Environmental and Spatial Technology). Projects will be offered jointly with the University of Hawai‘i (UH), community colleges, Department of Education (DOE) or private entities.  The bill appropriates $5 million for these programs for fiscal years 2008 and 2009.

This includes the establishment of STEM academies on Kaua‘i, through a HiEST (Hawai‘i Excellence through Science and Technology) Academy pilot program that will be administered by Kaua‘i Community College (KCC) at two public schools.  The bill appropriates $522,040 and authorizes three positions at KCC to administer the program.  It also provides $53,460 to the DOE for a position to collaborate with the community college on establishing the HiEST pilot program.

In addition, the bill creates the FIRST (Fostering Inspiration and Relevance through Science and Technology) program within the UH College of Engineering to focus on setting up project-based learning programs for students in grades 4 through 8.  School participation in the FIRST program will be voluntary.  The bill also establishes a FIRST teacher training program at UH to support the development of middle school teacher skills and knowledge and the formation of a middle school STEM curriculum with an emphasis on wireless communications.  To implement the FIRST program, the measure appropriates $2.8 million and authorizes nine positions at UH.

Additional appropriations under Act 111 will be used for the following purposes:

$350,000 for the creation of a professional development program of science and math teachers in the elementary through high school level to update and enhance their skills and knowledge of recent developments in these fields.  This program, which will be administered by the UH College of Education, will include summer school, after school, weekend and distance learning options for teachers. 

$350,000 to allow UH to continue to provide stipends to college students pursuing a post-baccalaureate certificate in secondary education who will teach STEM classes. 

$200,000 to create a business/education internship and mentorship program within the Department of Business, Economic Development and Tourism. 

$700,000 to establish agricultural and culinary arts programs in the DOE, in partnership with UH and the Hawai‘i Farm Bureau Federation.

Act 111 will take effect on July 1, 2007.

HB1500 HD2 SD2 (Act 110) culminates a three-year effort by the Lingle-Aiona Administration to ease the unemployment insurance tax burden on Hawai‘i businesses.  The new law lowers the taxable wage base for unemployment insurance payments, increases benefits for unemployed individuals, and will result in a net savings of $151 million over the next three years.

Hawai‘i’s low unemployment rate and strong job growth has resulted in a substantial balance in the state’s unemployment insurance fund, which is currently $539.8 million.  This amount is more than enough to maintain the state’s yearly unemployment costs, which have averaged $90 million for the past two years. 

“Lowering the unemployment insurance costs, which my Administration has advocated for the past three years, will help lower the cost of doing business in Hawai‘i,” said Governor Lingle. “Instead of having this money sit idle in the state’s unemployment insurance fund, employers can now use this money to reinvest in their business and their employees.”

This measure lowers the taxable wage base for unemployment insurance payments from the 2007 level of $35,300 to $13,000 for calendar years 2008 through 2010, so long as the balance in the unemployment insurance fund does not fall below an adequate reserve amount. 

It also increases employee maximum weekly unemployment insurance benefits from 70 percent to 75 percent of the individual’s average weekly wage.  This increase would be effective for a three-year period, from January 1, 2008 through December 31, 2010.

Starting January 1, 2008, the new law will provide an increase to employees who work more than one job by raising the earnings disregard permanently from $50 to $150.  This will allow an employee to retain more of their unemployment check while still working for their other part-time job.

The Department of Labor and Industrial Relations estimates these changes will reduce employers’ unemployment insurance payments by $172 million, and will increase employee benefits by $21 million for a net savings to businesses of $151 million.  The department also estimates that the fund will have a balance of more than $400 million at the end of the three-year period, barring any severe and unexpected economic downturn.

Act 110 will take effect on January 1, 2008.

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For further information contact:
Lenny Klompus 
Senior Advisor-Communications
Phone:  (808) 586-7708

Russell Pang
Chief of Media Relations
Phone:  (808) 586-0043