Lt. Governor Addresses State Economy on Maui
Lt. Governor Aiona discussed on Wednesday the Administration's plans to bolster the economy and promote the visitor industry on Maui by combining immediate steps with long-range strategies.
The Lt. Governor meets Carol Reimann (right), executive director of the Maui Hotel & Lodging Association, and board member Sharon Suzuki.
The Lt. Governor’s overriding theme in a 20-minute speech at the Maui Hotel & Lodging Association meeting was that the Administration has charted a five-point plan to meet the economic challenges facing the state.
"Our Administration remains focused on developing innovative ways to
maintain public service at the highest level with fewer resources, and
without increasing taxes or fees," Lt. Governor Aiona said.
The Council on Revenues did not revise its projected revenues outlook in its latest report. But since August 2007, the council has reduced its forecast by $2.9 billion that the state has to spend for the next six years. If revenues do not increase and spending restrictions are not made, the state could face a projected deficit of $903 million after fiscal year 2011.
"These projected deficits are just that - projections," Lt. Governor Aiona said. "Every day we are working to reduce expenses and increase revenues. By doing so, the deficit gap will close. While the previously forecasted, lower projected revenues will mean increased challenges for all of us, we are confident these challenges can become opportunities for our state."
The Lingle-Aiona Administration has implemented a five-point plan to bolster economic conditions and create those opportunities:
- Increased tourism outreach and marketing;
- Investing in improvements to our infrastructure and state facilities;
- Lowering business fees and providing tax relief;
- Attracting outside investment, especially in energy; and
- Maximizing federal dollars and partnerships.
For example, the Department of Commerce and Consumer Affairs announced Wednesday that Hawai‘i's Workers Compensation rates have dropped 61 percent over four years. “This huge drop is one of the largest declines in workers’ compensation insurance rates of any state in the nation, and they will help Hawai‘i employers offset some of the other rising costs they are facing,” Lt. Governor Aiona said.
At the same time, he said the Administration and hotel industry leaders are continuing to urge the Hawai`i Tourism Authority to reallocate $10 million to increase tourism marketing.
“Also, the governor and I are planning separate trips to Asia and California to help promote the industry,” he added. “Our Administration is combining immediate steps to bolster the economy with long-range strategies. It really comes down to making innovation a focal point of business and finding opportunities during challenging times.”
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