Governor paving populist path

Gov. Neil Abercrombie is turning a page in his agenda, as outlined in Tuesday’s State of the State address, with particular attention being given to his constituents at either end of the age spectrum.

Early education tops the list of his proposals, and he closes with a bid for early intervention in children’s health. The latter seems primarily meant as a tribute to the state’s late health director, Loretta Fuddy, who held this issue in high regard.

But the real thrust is behind boosting school-readiness of Hawaii’s keiki, starting with the lower-income groups that need the most help. He described an onramp toward this goal that’s more realistic than his earlier, full-scale preschool expansion.

He devoted a fair amount of the speech addressing the needs of Hawaii’s older citizens, supporting tax reforms that aid the lower-income elders, as well as making "Kupuna Care" funding permanent, securing programs that help all seniors "age in place." That proposal also makes sense, with the youngest of the baby boomers reaching 50 and the "silver wave" of a large generation in retirement looming.

The address also expresses the belief that Hawaii’s fiscal troubles are now in the rear-view mirror.

"Our state government’s financial house now stands on solid ground," he said.

While there is now a sizable budget surplus, and while the Legislature did enact a program of paying down unfunded liabilities, signals from the visitor industry have been mixed in recent months. It would have been good to hear some acknowledgement of the fragile state of economic recovery, and the need for continued care in spending.

It was also disappointing that so little was said about economic development or broader tax reforms aimed at spurring growth. The 2013 address, in which he touted the HI Growth Initiative, Kakaako redevelopment and other programs, seems a distant memory.

Also disappointing was the short shrift given to a visibly growing, pervasive problem that has been allowed to fester, and is in need of bold leadership: the homeless encampments. The brief discussion on this topic did not reflect the magnitude of this problem.

Abercrombie pointed to the action plan of the Hawaii Interagency Council on Homelessness, including the proposed expansion of the "Housing First" program to end life on the streets for the most chronically homeless.

But the administration must put more of its muscle behind such programs, because Hawaii can’t afford to languish without making strides toward a solution.

On early education, additional subsidies requested for low-income parents using community-based preschools, as well as direct services in 32 pre-kindergarten classrooms across the state, comprise the administration’s current approach. It’s a solid start toward better access to quality early education.

In November’s general election, there will be a constitutional amendment question on whether to enable the use of public funds in private preschools. There needs to be much more discussion in legislative hearings — about what standards would be set for qualifying preschools and how to avoid lawsuits over the use of public funds for religious institutions.

In his speech, Abercrombie also pressed for the first increase in the minimum wage in seven years, given that employers now have reduced unemployment insurance tax rates after the state’s trust fund has been replenished.

This seems a reasonable position. However, elected leaders shouldn’t forget about the more targeted relief that the earned income tax credit could provide to low-income working families. A measure that would accomplish that, Senate Bill 301, now sitting in a conference committee, deserves another look.

Abercrombie’s 2014 wish list, announced at the start of an election season, is an appeal to voters who are gauging his accomplishments and future promise. While it’s not surprising that this agenda is far more populist than what he unveiled at the dawn of his "New Day" first term, the mission of strengthening Hawaii’s economy isn’t complete.

What emerges from this session still should reflect a cautious outlook.