Gov. Linda Lingle shares her Administration's top priorities with the Hawaii Island Chamber of Commerce. (Photo courtesy of the Governor's Office)

MEDIA RELEASE

Gov. Linda Lingle discussed her initiatives to make life better for all the people of Hawaii at a chamber meeting April 6 in Hilo. The governor shared with business leaders details of her Administration’s initiatives to strengthen the economy by creating jobs, investing in infrastructure and maximizing federal stimulus funds.

Lingle outlined how state government is addressing the challenges that businesses across the state and nation are dealing with on a daily basis.

“The decrease in revenues has created an unprecedented budget gap,” she said, referring to the nearly $2 billion revenue shortfall projected over the next two years. “Nevertheless, we remain committed to no layoffs and no general tax increases.

“Higher taxes would be the straw that breaks the backs of local businesses,” she said. “We can’t punish the people creating new jobs.”

In order to close the $2 billion budget gap between now and June 2011, the Administration will seek a combination of savings in labor costs that will be negotiated in the collective bargaining process, as well as the use of additional federal stimulus funds.

The governor also called on county mayors to support the state in realizing labor savings so she can continue fighting to keep the transient accommodations tax (TAT) for the counties, a move legislators have proposed using to help balance the budget.

Citing her experience as mayor of Maui County, the governor said, “I understand the lag that occurs in evaluations of real property taxes and the county budgets are going to be hit hard next year.

“I feel I am offering [the mayors] a way to deal with their future issue as well as their current issue and that is: stick with me because I’m the only one supporting your TAT right now – keeping that transient accommodation tax.”

While balancing the budget remains a major focus of the Administration, Lingle also updated chamber members on ongoing efforts to boost the economy and create jobs.

This includes investing in improvements to infrastructure and facilities statewide as part of the Administration’s five-point plan to improve current economic conditions while remaining focused on the long-term transformation of our economy.

The governor updated Hawaii Island Chamber of Commerce members on progress of the $1.8 billion Capital Improvement Project (CIP) initiative launched in December 2008, which includes 323 projects worth $408.7 million on Big Island. She also shared details of the six-year, $4.2 billion Highways Modernization Plan, which includes 27 Big Island projects worth $524.7 million.

In addition, the Governor also highlighted the use of federal stimulus funds from the American Recovery and Reinvestment Act of 2009, including $46.6 million for “shovel-ready” highway and road projects on the Big Island that were announced in March. These projects are expected to create 600 jobs.

“Stimulus funds are helping us move forward with major priorities,” she said, noting that like other governors across the nation, she is personally accountable for ensuring programs meet specific goals and targets and that there will be no unnecessary delays or cost overruns.

Federal stimulus funding is also focused on clean energy and green jobs, another area in which Hawaii has made significant progress and where the private sector, including Big Island clean energy producers, is well positioned to secure federal competitive grants.

In addition to highlighting her Administration’s initiatives to help businesses across the state address current economic challenges, the governor recognized six Small Business Administration award winners from the Big Island representing top-performing small business owners, exporters and advocates.

This year’s honorees included Dr. John D. Stover of Hilo Oral & Facial Surgery, 2009 Small Business Person of the Year; Dwight Manago & Family of Manago Hotel Inc., 2009 SBA Family-Owned Business of the Year; Attorney Darl C. Gleed, 2009 Financial Services Champion of the Year; Melanie Biddle of Hale Hoonanea, 2009 Home-Based Business Champion of the Year; and Constance Cate, 2009 Women in Business Champion of the Year.