Gov. David Ige proposes $100 refund for every Hawaii taxpayer and their dependents

Gov. David Ige proposed refund checks of $100 for every taxpayer and each of their dependents that would pump $110 million from the state general fund into the economy during his eighth and final State of the State speech Monday.

Ige, known for his stoicism, uncharacteristically choked up at the end of his nearly 30-minute address.

“I am proud of the work that we do. And I am proud, proud to be your governor,” Ige said. “For all that you do and all that you are, my thanks and deeply felt aloha. Mahalo.”

In addition to refund checks, Ige pledged bold initiatives that would increase the number of doctors doing their residencies on the neighbor islands to 50 from only five; provide health care for another 110,000 residents under Me­dicaid; build another 3,000 affordable homes by the end of the year; and tap into new federal infrastructure funds, along with state money, to expand broadband service to the neighbor islands through a $400 million project.

The broadband project, which would include Molokai and Lanai, would represent the state’s biggest investment in technology in Hawaii history.

“We’re calling it Apakau ka La — ‘spreading of the sun’s rays’ — and it will support critical infrastructure for the future, connecting all of the main Hawaiian Islands,” Ige said. “This initiative will not only close the digital divide between the haves and the have-nots, but it will also strengthen us as a community.”

Later, Ige told reporters that several of his proposals — such as $100 for every taxpayer — still need to be approved by the Legislature, and many details remain to be worked out, such as how taxpayers would receive their refunds and when.

But Ige said he is willing to “work together to get to the best package to support our community.”

Because of COVID-19 concerns, Ige spoke from the governor’s ceremonial room rather than before legislators and an audience.

Ige said in his speech that contaminated drinking water suspected of coming from the Navy’s Red Hill underground fuel storage facility “alarmed and shocked everyone.”

“We’ve met with Navy leaders and let them know that their first job is to ensure that our drinking water stays safe and clean,” he said. “Draining the fuel tanks at Red Hill is a good first step. But we must work to find long-term solutions. National security cannot come at the expense of our people’s health. I believe we can protect both national security and public health. But it will take determination and the collaborative efforts of everyone.”

Ige said the COVID-19 pandemic “is redefining us as a generation — in the same way that the Great Depression, Pearl Harbor and the Vietnam War shaped their generations.

“Events and history have a way of repeatedly testing us,” Ige said. “Each generation must find its own strengths, its own answers and its own path forward.”

“In many instances we’ve had to choose between what is best for ourselves as individuals and what is best for us as a community,” Ige said. “As a state we’ve never been one to take the easy path. Instead, we choose to do the right things for the right reasons.”

Ige said the state has provided more than 2.5 million COVID-19 vaccinations through “hundreds of clinics across the state. “But the virus has been relentless in exposing gaps in our health care infrastructure, including critical shortages of doctors and nurses,” he said.

The governor said he’d like the Legislature to fund the expansion of the University of Hawaii’s doctor residency program.

“In this way we can increase the number of doctors doing their residency on the neighbor islands from only five to 50. More importantly, the numbers tell us that most young doctors end up practicing where they do their residency. We’re also asking for funding to strengthen the university’s nursing program and add more clinical instructors at our community colleges.”

He proposes to add 39 lecturers across the university system to handle the increased demand for nursing programs.

Senate and House leaders said they are generally open to some of Ige’s biggest proposals but need the details, which could be offered in bills his administration submits.

For instance, House Spea­ker Scott Saiki said Ige’s proposal to provide individual $100 refunds to Hawaii taxpayers and their dependents aligns with a House priority to help improve the economic well-being of residents by increasing the state minimum wage, expanding Hawaii’s earned income tax credit and expanding a food tax credit.

“So the governor’s proposal to provide a tax refund fits into our priority of providing relief to working families,” Saiki said. “So it’s something that we will definitely put on our radar screen, and we’ll consider and we’ll see if we can factor that into the state budget this year.”

Senate President Ron Kouchi said he would consider Ige’s refund proposal, which is estimated to cost $110 million, according to Jacob Aki, director of communications for the state Senate.

Ige’s Apakau ka La broadband initiative also has initial support.

Sylvia Luke, chairwoman of the House Finance Committee, said the state already has received over $200 million in federal money to spend on expanding public access to high-speed internet service and has a chance of receiving a total of around $300 million to $400 million or more.

“This is a once-in-a- lifetime opportunity because we have never seen this type of commitment from the federal government,” Luke said. “It has become even more important during the pandemic, as we go into Zoom meetings, as we go into telehealth. This provides so much more op­portunities, and it is an equalizer because this will allow kids, our kids who work from Puna or work from Hana, to actually work in (Washington) D.C. or work in California. So this is a great equalizer.”

House leaders also concurred with Ige that it is time to resume an effort to provide preschool to all Hawaii children. An agreement was reached two years ago to achieve the goal, but planning stalled because of the pandemic.

Other things proposed by Ige were harder for lawmakers to assess immediately without more details, such as how $56 million proposed by Ige to benefit local tech startup companies would actually be used.

But House leaders said they appreciated Ige’s rare glimpse of emotion at the end of his address as he begins his last year in office.

“That was very touching,” Luke said. “He has never let the public see that emotional side.”

Luke credited Ige with doing his best to lead the state through what she termed “disaster after disaster” that have included floods on Kauai, Kilauea’s eruption in Puna and COVID-19.

Rep. Della Au Belatti, House majority leader, echoed Luke’s sentiments and added, “I think this governor has gone through, really, a roller coaster through his two terms.”

Saiki said he expects that history will be kinder to Ige.

“I don’t think that any governor in the history of Hawaii has gone through what he has gone through as governor,” Saiki said. “The crises that have occurred in the past pale in comparison to what he has had to deal with.

“And it is difficult because when you have to deal with a crisis, you’ll never have 100% agreement from people. Everybody has a different idea of what needs to be done, and everyone is willing to freely criticize. It’s a tough position to be in. … He tried his best, he worked hard and I think he did what he thought was the right thing to do.”

GOVERNOR’S TOP PROPOSALS

1) Provide refund checks of $100 for every taxpayer and their dependants.

2) Increase the number of doctors doing their residencies on the neighbor islands to 50 from five.

3) Build another 3,000 affordable homes by the end of the year.

4) Provide health care for another 110,000 residents under Medicaid.

5) Expand broadband service to the neighbor islands through a $400 million project.