From the Office of the Governor:

As The Abercrombie Administration moves into its second year, we reflect on some of the first year’s actions and accomplishments.

In his first year in office, Gov. Neil Abercrombie set forth a comprehensive plan, “A New Day in Hawaii, to invest in education and rebuild our economy; sustain our Hawaii for future generations; and to restore public confidence.

A number of initiatives laid out in the Plan were accomplished to begin the foundation for continued action in the upcoming year.

Here are some highlights:

Fiscal Discipline

The Abercrombie administration took office with the State facing a $1.2 billion deficit for the period of December 2010 to June 2013. The administration immediately began addressing the deficit while minimizing the impact on services to the public, through a combination of cost savings on public employee health plans, better management of state bond issues to reduce interest costs and a retooling of state departments.

By the end of the fiscal year on June 30, 2011, the State was able to enter the new fiscal year with a positive general fund balance for the first time in 3 years. The administration negotiated labor savings with two major public employee unions to effect savings in wages and health insurance with no interruption to public services.

The State also negotiated a new pharmacy program that will save $24 million in the first year of the contract and lower dental insurance rates resulting in more savings without interruption to public services.

As a result, Standard & Poor reaffirmed the State’s “AA” rating for general obligation bonds saying in a November 8, 2011 press release that state, in part, that the rating is reflection of “Governor Neil Abercrombie’s willingness to implement aggressive solutions, totaling $1.32 billion, to balance the fiscal 2011-2013 biennial budget in light of a projected budget shortfall that had reached $1.25 billion for the biennium…”

Education Gains

We now have unprecedented alignment in public education. Recall that in the previous administration the DOE Superintendent and UH President were literally not at the table as part of the Governor’s cabinet, and that school was closed on Fridays. All of that has changed. On his first day in office, Abercrombie reached out to the Superintendent of Education and the President of the University to discuss what must be done to advance education in Hawaii and in his first executive action, the Governor released funds to bring an end to Furlough Fridays.

With a newly appointed BOE, continued collaboration with the federal government on Race to the Top, we are improving student achievement and increasing resources to the system, and all because we are working together, focusing on what works and minimizing the politics.

This year, Hawaii demonstrated best evidence of educational improvement in the nation; Hawaii was the only state with gains in every grade and every subject on the National Assessment of Educational Progress which is the only valid comparison among states.

While much work remains to be done, the results demonstrate that Hawaii is primed for increased success as our focused reform efforts reach every classroom; our alignment and Race to the Top initiatives will increase our trajectory toward desired outcomes for our keiki and our state.

This includes widespread community support, including the Governor’s, for increasing graduation requirements so that our high school graduates will achieve the Common Core State Standards.

The Governor and UH are also aligned in an unprecedented way. At UH we are investing in people by ensuring that more students earn degrees and certificates at UH. This provides our residents with more knowledge, access to more career options and more opportunities to support their families and contribute to the community. It also develops our workforce.

This year, UH received major federal grants to support these goals: $26 M of GEAR UP grants to support getting students ready for college and $24.7 M Department of Labor grant for job training workforce development (Community College and Career Training Initiative).

By 2014, public schools, libraries and university campuses statewide even in our most isolated and traditionally underserved communities will have high speed broadband connection enabling more distance learning and research collaboration; UH is leading the $34M federal grant to provide high speed broadband connections to our educational institutions.

Energy Self-Sufficiency

Hawaii is continuing to make progress toward our goal of reducing our dependence on imported fossil fuel by 70 percent by 2030. Renewable energy investments in Hawaii have grown from $362.6 million in 2009 to a projected $1.3 billion in 2011.

The State Energy Office is partnering with the U.S. Department of Energy, military, local businesses, and local organizations and has met with over 400 clean energy companies this year, in tracking more than 64 renewable energy projects and has received a total of $46 million in federal grants. These funds will result in a stronger grid that can take on more renewable energy and accelerate the adoption of electric vehicles in Hawaii.

State government has led by example by reducing total electric consumption by 2.8 percent last year over 2009 which saved more than $20 million in energy costs statewide. For example, photovoltaic panels were installed on the Kalanimoku Building saving the State $300 a day in electricity with more panels to be added in the future.

We also built the first public charger station for electric vehicles in Hawaii and are looking at installing more throughout the State, setting the stage for Hawaii to become a leader in electric vehicles.

In addition the State is building a 10 MW facility in partnership with Hawaiian Electric Co. to provide power to the grid and to power the airport in the event of a major emergency. The plant, which will be fueled by renewable biodiesel, is a great example of government partnering with private industry to provide a needed service and save millions of dollars over the next 20 years.

The Governor recently signed a Letter of Intent with China to work on renewable energy projects and an MOU with Japan to solidify ongoing energy efforts like the first-of-its-kind smart grid demonstration project on Maui.

The multi-million dollar project is aimed at improving integration of variable renewable resources, such as solar and wind power, and preparing the electric system for widespread adoption of electric vehicles.

With all of this change taking place Hawaii is now set to start the growth of green jobs industry. The State received a large federal grant and projects an additional 2,900 green jobs in 2012, a 26 percent growth over 2010.

Asia-Pacific Leadership

Abercrombie traveled to Asia where he laid a foundation for economic growth with Asia and pushed for a more streamlined visa process to sustain visitor industry growth and outreach to our friends in the Pacific.

APEC was the biggest meeting that Hawaii has ever hosted, and so it was an important test for us as we establish our leadership in the Asia Pacific region. We passed with flying colors. APEC Ambassador Kurt Tong gave Hawaii an “A-plus” for our aloha spirit, facilities and efficient service.

The Hawaii Tourism Authority, Hawaii Convention Center, visitor industry and the State of Hawaii will pivot from this positive experience to bid for future events in this highly lucrative sector of the tourism industry.

Importantly, the Governor made sure that the focus of APEC was to use it not only to promote tourism, but to reposition Hawaii as a leader in clean energy and attract the kind of investments that will lead to long term prosperity. These efforts capitalized on the State’s hosting of the Asia Pacific Clean Energy Summit just two months earlier.

While we have always maintained that the benefit of APEC is in opening the doors to developing long-term relationships, Abercrombie was able to secure a letter of intent to pursue mutual interests in clean energy development following the “Transforming to Clean Energy” Hawaii-China CEO Forum.

Hawaii company Sopogy also executed a memorandum of understanding for equity and project finance with Sichuan Dongjia Investment Company following the same forum.

Homelessness

The appointment of Marc Alexander as the State’s Homeless Coordinator has been widely recognized as an important first step. The results so far are promising.

First, we finally have the State and the City & County of Honolulu working together on this problem. Second, we are collaborating with non-profits. The 90-Day Plan was the catalyst for immediate collaboration among state and county governments, nonprofits and community groups and those efforts will continue with the Hawaii Interagency Council on Homelessness, created by Abercrombie by Executive Order.

While the problem of homelessness will require continuing effort, the first 90 days resulted in impressive achievements including:

* More than 200 people from Waikiki and the urban core, including 40 vulnerable individuals, were moved into transitional or permanent housing.
* 85 people in the Waianae area were moved into permanent housing.
* 65 people on Maui were moved into permanent housing.
* 44 people on Kauai were moved into permanent housing.
* 136 people on Hawaii Island were moved into transitional or permanent housing.
* Next Step Shelter in Kakaako expanded its hours to be open on the weekends.
* “Safe parking” zone program was implemented by Hope Services Hawaii in Hilo.
* Online resources and information were updated including a “wish list” and “volunteer opportunities” for shelters.
* Over 500 calls were received by the homeless hotline and calls continue to be received daily. Of the 500+ that called, over 130 callers were referred into housing resources.

Tourism Promotion

With APEC under our belt and the Governor and Lieutenant Governor both making trips to Asia, we see these efforts beginning to bear fruit. An unprecedented public private partnership including Hawaii Tourism Authority and our friends in Asia is resulting a record year from China and Korea, a strong recovery in Japan, and a solid year from the U. S. mainland.

For the first eight months of the year:

* Arrivals are up 2.5%
* Visitor days are up 4.0%
* Visitor expenditures are up 16.1% to $8.25 billion, nearly $1 billion more than the same period last year.

In addition, new lift from Asia and Oceania are opening emerging markets for Hawaii.

This includes the following new or expanded service from Honolulu:

* China Eastern Airlines – Shanghai
* Asiana Airlines – Seoul
* Hawaiian Airlines – Osaka, Fukuoka and Sydney
* Delta Airlines – Fukuoka and Osaka
* Japan Airlines – Nagoya
* Increased charter service out of Japan
* New and increased service from Brisbane, Melbourne and Sydney

Workforce Housing

Under Abercrombie’s leadership, the State has embarked on a comprehensive strategy to expand and repair public and private workforce housing in partnership with the federal government and private developers.

Projects that have been started or completed this year include:

* Restoration of hot water and other repair and maintenance projects at Mayor Wright Homes.
* Sale of Towers at Kuhio Park to a private developer that will renovate, maintain and manage the property. Additionally, Kuhio Homes and the surrounding community is also planned for modernization.
* Below-market rentals at Hale Wai Vista II
* Affordable for-sale homes at Holomua
* 690 Pohukaina mixed-use Transit Oriented Development-with affordable rentals and for-sale units in addition to community space.

Doing Infrastructure Smarter

Almost every governor has made an effort to invest in infrastructure, but we have changed the way we do it, and the results are showing.

Since taking office, we released over $425 million for capital improvement projects all across the state, focusing on school and public facility repairs. These projects are contributing to Hawaii having the nation’s second highest rate of growth in construction jobs over the last year.

The departments of Accounting and Government Services, Transportation, Education, and the University of Hawaii are taking the lead in making sure Hawaii benefits from this economic boost.

Environment:

Joint Forestry Memorandum of Understanding to promote private forest stewardship is a collaboration between state and federal agencies that will promote local job growth in the forest products industry while strengthening cooperation in the delivery of forest-related conservation assistance to private landowners and managers of the land.

Creation of new Fisheries Enforcement Units by a partnership of the Department of Land and Natural Resources, Conservation International and the Harold K. L. Castle Foundation to increase enforcement in Hawaii’s nearshore fisheries.

Waikiki Beach sand replenishment project replenished sand along 1,700 feet of shoreline in Hawaii by a partnership of the Department of Land and Natural Resources, the Hawaii Tourism Authority and Kyo-ya Company.

Restoration of 10 agricultural inspector positions to protect the environment from invasive species.

Petitioned the Secretary of Interior for multiple designations under the America’s Great Outdoor Initiative to conserve the beauty and health of our land. As a result, two projects highlighted by Secretary Salazar, the Aha Kahakai Historic Trail on the Big Island and the Wailua River National Blueway on Kauai as having great potential to conserve important lands and build recreation opportunities and economic growth for the surrounding communities.

Early Childhood

Naming of Terry Lock as the Early Childhood Coordinator tasked to develop an early childhood action plan. In an example of public-private partnership the coordinator is funded in part through a grant by the W. K. Kellogg Foundation.

One of the first accomplishments by Ms. Lock has been to apply for the Race to the Top grant which may provide the State with over $20 million for early childhood development.

Information Technology Update

Establishment of the Office of Information Management and Technology to modernize the State’s technology system to improve government efficiency, under the direction of the first ever Chief Information Officer (CIO). Abercrombie appointed Sonny Bhagowalia as CIO in another public-private partnership, the Hawaii Community Foundation is partially funding the operations.

Native Hawaiian Issues

Appointment of the Native Hawaiian Roll Commission to begin the process that will lead to federal recognition of Native Hawaiians. The Governor appointed the Native Hawaiian Roll Commission to lay a strong foundation for Native Hawaiians to seek federal recognition. This unprecedented step will begin the groundwork necessary for Native Hawaiians to direct their own future.

An agreement in principal has been reached with the Office of Hawaiian Affairs to finally and completely resolve all claims of OHA’s share to ceded land receipts through July 1, 2012, at no cost to the State’s general funds. If approved by the Legislature, this agreement would end decades of dispute over the State’s constitutional obligations.

Healthcare Transformation

Created by executive order and again with the help of private funding through the California Endowment, Beth Geisting was appointed by the Governor as the state’s Healthcare Transformation Coordinator and Dr. Thomas Tsang as the Senior Healthcare Advisor.

Together they are developing a plan to align our state with the federal requirements for health care reform. They worked with the state’s Insurance Commissioner to set up the Health Insurance Exchange (The Health Connector) and apply for a federal grant to help fund The Connector.

Justice Reinvestment

The Department of Public Safety launched the Justice Reinvestment Initiative to help analyze our criminal justice system. The Governor, along with Chief Justice Recktenwald, Senate President Shan Tsutsui and House Speaker Calvin Say organized a working group to review data collected by the Justice Reinvestment Initiative and develop policy options that will decrease prison population growth.

They will also adopt new reinvestment strategies that will save the state precious dollars and ultimately bring our prisoners home from out-of-state prisons.

Collective Impact

After years of budget cuts to health, housing and human services, the Abercrombie Administration is working collaboratively with the nonprofit sector to rebuild our safety net of services for our most vulnerable population.

Using the STRIVE model developed by a nonprofit group in Cincinnati, five working groups were organized with representation from both the public and private sector to work on resolving issues in early childhood, the elderly, at-risk and foster youth, unemployed/working poor, and the homeless.

The Administration also began returning people back to work at the Department of Human Services and restructuring the Department so that applications can be processed more expeditiously for low-income children, adults and elderly residents eligible for food stamps and Medicaid.

Older Adults and Aging

With Dr. Wes Lum heading the Executive Office on Aging, we were able to work with the counties and community partners to develop a comprehensive plan to establish the Aging and Disabilities Resource Centers that will: 1) serve as a single point of entry for all long-term care support and services in the state; 2) streamline eligibility determination and minimize the need to navigate multiple bureaucracies; and 3) facilitate informed choices about long term care.

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http://hawaii.gov/gov/