Excerpts from the text of Gov. David Ige’s State of the State address Monday:

Thirty Meter Telescope

We are now going through some very difficult days with the Thirty Meter Telescope. … Even though I personally believe that the telescope needs to be built, it was also clear to me that many things have gone very wrong along the way. …

In its recent ruling, the Supreme Court did not say don’t do this project. What it did say was that the state didn’t do the right things in the approval process. It told us we needed to do a better job of listening to people and giving them a real opportunity to be heard. …

I am committed to pursuing this project and I hope its sponsors will stay with us. And this time, we will listen carefully to all, reflect seriously on what we have heard and, whatever we do in the end, we will do it the right way. …

Public pension

The state’s obligation to the public pension and health benefit funds represent two of our biggest fixed expenses. … Last year, we changed the way in which we funded those obligations that will save hundreds of millions of dollars in the future. In the past, the state’s contributions to the fund were made in installments that spread over 12 months. By consolidating those contributions into a single payment at the beginning of each fiscal year, we will realize contributions or taxpayer savings of up to half a billion dollars over the next 20 years.

Furthermore, my supplemental budget request to the Legislature includes paying 100 percent of the annual required contributions rather than 60 percent for the next two fiscal years. If authorized, this will further save more than $300 million in required contributions over the next 20 years. …

Tax modernization

While the history of the tax department’s computer programs is not a good one, the recent initiative to upgrade those programs is on time, on budget and meeting our first-year expectations. It will take until 2018 to complete, but we are already seeing progress in the collection of the general excise and transient accommodation taxes.

Greater efficiencies have increased tax revenues and saved taxpayer dollars. At the same time, our tax-fraud unit identified over $20 million in fraudulent claims in the last fiscal year and, so far this year, it has found another $11 million. …

We know this work delays tax refunds and we are working hard to minimize those delays. If you bear with us during this transition, we will soon have a system that will be better able to catch fraud, without the time, cost and work required to do so today.

Money management

In some cases, the state has struggled to spend federal monies in a timely way. … We are starting to make progress. The Department of Transportation reduced its Fiscal Year 2015 project pipeline balance by over $100 million. This is the largest drop in five years and is the lowest it has been since Fiscal Year 2002.

I am also pleased to announce that the federal Environmental Protection Agency has determined that our state Department of Health is now in compliance in spending down the Drinking Water Fund. As a result, the remaining balance totaling $8 million for Fiscal Year 2015 is being released for use locally. …

We also know that when public funds are managed better, the cost of borrowing money decreases. Last November we completed a $750 million state bond sale — the first for this administration — and were able to refinance some of our bonds. This resulted in savings of about $61 million in our debt service requirement. …

OCCC and Kalihi

One of the harshest realities facing us today is that we need to tear down the Oahu Correctional Facility in Kalihi and build a new facility in Halawa. The jail is severely overcrowded and in disrepair and we must take action. Therefore, I am introducing a bill to move this forward.

The facility will be designed to take advantage of all that we have learned about incarceration, and the need to give inmates a real opportunity to change their lives. Once the correctional facility has been moved, we can take advantage of the transit-oriented development opportunities created by the rail transit system.

In the next couple of weeks, I intend to put together a group of community leaders who will convene a series of community meetings to let Kalihi speak about what Kalihi wants and what role it will play in the future of Honolulu.

The land at Dillingham and Puuhale could be used for affordable housing, open space for recreation, commercial development and the jobs that it would bring, education and many other possibilities. And there are other state housing and mixed-use developments in various stages of planning and development in Kalihi. …

Homelessness

… We are also currently in the final stages of renovating a 5,000-square-foot maintenance facility in Kakaako to house up to 240 people a year. … It will be a Family Assessment Center that will quickly connect families to longer term housing. An additional $8.3 million has been included in my budget for Fiscal Year 2017 to operate the Family Assessment Center, expand the Housing First Program on the neighbor islands, and establish a new rapid rehousing program throughout the state. …

I am also pleased to announce that the state will be investing $5 million immediately to jumpstart a new public-private partnership with Aloha United Way. It will provide direct funding for rapid rehousing, homeless prevention services and establish a statewide referral system. It will also develop long-term homeless strategies to address the needs of the most vulnerable individuals, including unaccompanied youth and those with chronic health concerns.

Affordable housing

It is estimated that 66,000 housing units are needed in the coming years. … This year, because of the great demand, we are seeking $75 million for the Rental Housing Revolving Fund to make more money available for low-income rentals.

But the biggest roadblock to developing more homes is the lack of adequate infrastructure that allows housing projects to even begin. The state can make a major contribution by funding projects such as roads and water systems. That’s why I am proposing legislation to allow us to use the Dwelling Unit Revolving Fund for infrastructure development. We are also asking for a $25-million increase to that fund in Fiscal Year 2017.

Public housing

… The North School Street redevelopment project will be one of three Oahu public housing initiatives to enter into a public-private partnership that allows for a mixed-use/mixed income model. Kuhio Park Terrace and Mayor Wright Homes are the other two. …

With the Mayor Wright Homes, we are in the process of formulating a master development agreement with Hunt Companies that has the potential of adding additional mixed-income units. A development agreement with the Michaels Group for phase two of Kuhio Park Terrace is also imminent, with the potential for additional affordable units.

Hawaii State Hospital

Behavioral health issues are often the underlying cause of many of our social, health and economic challenges. … That’s why we’re investing $160.5 million in a new forensic mental health facility on the grounds of the State Hospital in Kaneohe. And we’ve budgeted $4.7 million in Fiscal Year 2017 to cover projected operating deficits at the State Hospital. …

Education/schools

The classroom is a sacred learning space, but students will fail to learn the lessons of their teachers when temperatures soar to over 100 degrees. …

We need to cool our classrooms now, in energy-efficient ways that align with our commitment to end our dependence on imported fossil fuels. … I am working with the DOE, other state departments, utilities and clean energy companies to cool 1,000 public school classrooms by the end of this year and thousands more each year through the end of 2018. …

To start, we will use $100 million of Green Energy Market Securitization funds to immediately install energy-efficiency measures and air conditioning units in classrooms where our children need it the most. By using existing GEMS program dollars, the Department of Education and its energy-efficiency partner, OpTerra, can quickly access affordable financing for a large portion of its cost to air condition our classrooms.

Tourism

Tourism is one of our primary economic engines, generating over $14 billion each year in visitor spending and employing nearly 150,000 workers. … We need to make travel to Hawaii as easy as possible by expanding U.S. Customs pre-clearance for international visitors, particularly from Japan. … Through a CIP funding appropriation, we want to establish Kona as a second international airport, giving visitors more travel options and conveniences.

Innovation economy

For those who haven’t noticed, innovation, fueled by technology, is driving the global economy at breakneck speed. We simply must create an economic environment that enables Hawaii’s entrepreneurs to turn ideas into products and services so that we can compete in today’s global economy. … I am proposing we set aside $30 million over the next six years from our corporate tax revenues to support innovation enterprises.

We also need to support accelerator and venture fund activities to give talented entrepreneurs the means to create new products and services. In addition, our investments will also help attract private money.