Modest plans for future prosperity

An unstable economy put the skids on Gov. Neil Abercrombie’s ambitious "new day" promises in last year’s Legislature, which heard his controversial tax measures with disdain. Helped this year by optimistic economic signs, the governor now puts forth relatively modest proposals that fall short of bold, but, if approved by legislators, build on the path toward recovery.

In his State of the State address Monday, Abercrombie said the state has "started to turn the corner" and suggested how to spend money aimed at achieving fundamental improvements. Those include spending on shovel-ready public construction projects, technological expansion and, over a long stretch, reduction of the state’s unique dependence on imported oil.

Abercrombie pointed out that the visitor industry has grown in the past year, reflected by an increase in general excise tax revenue and payroll employment, helping the state rebound from a budget deficit of $1.2 billion. He called for $188 million in new state spending in the coming fiscal year, a 1.7 percent increase.

In a shift from his more forceful State of the State last year, Abercrombie attempted to strike an overall tone of collaboration. For example, addressing last week’s labor contract rejection by the Hawaii State Teachers Association, which threatens to torpedo a $75 million federal Race to the Top education grant, Abercrombie properly invited a new proposal but promised to "continue to press for a resolution" that includes a federally mandatory system for evaluating teachers.

He also asked legislators for $10 million to bring the state’s outdated computer technologies into the 21st century — well worth the investment if breakthrough efficiencies can be achieved, so details are eagerly anticipated.

Meanwhile, some of the governor’s other objectives raise questions. He proposed providing every school student with a laptop computer; great in concept but fiscally doubtful.

His proposal for a tax on sugar-sweetened beverages having been rejected by legislators last year, Abercrombie called for creation of a task force to study the issue. He also dwelled on the valuable investment in early education for children — noting that 85 percent of a child’s brain development occurs before age 5 — but was vague on details. For this issue and the sweetened-beverage task force, though, Abercrombie is asking lawmakers for $1 million.

Questions also remain about the state’s role in coping with homelessness, a tough and lingering problem. Abercrombie praised the state’s first coordinator on the issue — Marc Alexander, who resigned for personal reasons — but failed to offer new direction or next-step initiatives.

One of Abercrombie’s most necessary long-term priorities is to increase the state’s various energy alternatives to imported oil, such as wind, solar, geothermal and others, along with an undersea cable sharing electricity among islands. One of his central approaches is to provide the state Public Utilities Commission with the authority to develop, adopt and monitor electricity reliability standards, including how companies’ alternative power should connect to a common network. That is essential in building a workable system.

Another way to balance the state’s budget is through major changes in the prison system, recommended by the nonpartisan Council of State Governments Justice Center. Abercrombie endorsed the changes and is preparing legislation for milestone improvements, as he should.

Overall, the governor is not likely to face the anger that was directed at his proposals, especially tax hikes, in last year’s legislation. The coming weeks will reveal, though, just how well the administration’s agenda meshes with that of Hawaii’s 76 legislators.