Posted on: Wednesday, January 23, 2002

STATE OF THE STATE
Governor to legislators: Do your job

•	Cayetano's final state words worth heeding
•	Full text of the State of the State address
	What did you think of the governor's address? Join our discussion

Flanked by Senate President Robert Bunda, left, and House Speaker Calvin Say, Gov. Ben Cayetano delivers his State of the State address. Bruce Asato • Honolulu Advertiser

The following are excerpts from yesterday's State of the State address by Gov. Ben Cayetano:

Now, four months after Sept. 11, I am pleased to inform you that there is light at the end of the tunnel. There are signs that our economy today is more resilient — stronger — than it was during the Gulf War crisis.

Where is this resiliency coming from? Why hasn't Hawai'i been hit harder, as it was during the Gulf War?

Our economists tell me there are two big differences. The first is the major economic reforms and restructuring that have taken place since 1995. We've made some significant changes.

Between 1998 and 2001, we approved 10 major legislative acts that lowered taxes for residents and businesses. We also provided generous tax incentives for new investment in technology, new construction and renovations.

These savings will total more than $2 billion over a six-year period, one of the biggest tax cuts in the nation. These tax cuts have put more money into the pockets of our people — and they are spending or investing it.

And there are indications that Hawai'i's economy is diversifying, reducing our dependence on tourism. Between 1996 and 2000, for example, the number of high-tech jobs increased by 23 percent, while jobs as a whole increased less than 4 percent. Hawai'i's healthcare industry grew as well and is now the state's second-largest provider of jobs.

The second difference was the outstanding and strong response by the community to the crisis.

After Sept. 11, business, labor, military and community groups quickly answered my call for help.

These citizens did a great job, and I ask you to join me in publicly thanking them and the hundreds of citizens across our state for their tireless and unselfish efforts.

Hurricane fund, tax hike

Our first task is to balance the state budget. We have proposed a financial plan which requires us to use the Hurricane Relief Fund and to raise the tax on alcohol.

If you disagree with this proposal, we are open to your suggestions. I disagree with some of the assumptions made about the Hurricane Relief Fund, but my main concern is to balance the budget as we are required to do by law — and to do it without jeopardizing the safety net for our poor and disadvantaged.

Keep in mind that education makes up 52 percent of our state General Fund budget and this time, I cannot spare the Department of Education from carrying its fair share of budget cuts. Our state programs servicing the sick, poor and disadvantaged suffered greatly during the first four years of my administration and, except for adjustments to the costs for Felix, simply cannot be cut any more.

Our second task is to continue our efforts to strengthen our economic infrastructure.

Sept. 11 demonstrated what we all know: Hawai'i's economy is over-dependent on tourism. Diversifying our economy will strengthen it and make it less vulnerable to the ups and downs in tourism.

Over the past seven years, we have focused on healthcare, bio-technology and high technology. Since 1995, we've taken some big steps toward diversification.

It has long been part of my vision to make Hawai'i the premier healthcare center of the Pacific. Your approval of UH's new $300 million bio-medical research center in Kaka'ako was a major step toward this goal.

Kamehameha Schools and the Ward Estate, two major landowners in Kaka'ako, are prepared to develop a biotech park for biotech companies which will be attracted by the new center.

Education is top priority

Education is the great equalizer. It certainly has been for me.

And that is why over the past seven years, in spite of our state's fiscal problems, we have given education our top priority. That's why we spared the DOE from budget cuts and cut other departments more to make up the difference. That's why we built more new schools and facilities than any other administration. That's why we increased the pay for teachers.

Our new contract with our teachers provides more than just a pay raise; it is a step toward a culture which focuses on accountability and professional development, rather than just seniority.

The school repair and maintenance backlog was nearly $614 million in 2000. The Department of Accounting and General Services tells us that it grows by $51 million each year.

We need to attack this backlog now. To cut it down to size, I am asking you to appropriate $255 million for school repair and maintenance. If you want to increase the amount, we welcome it.

The University of Hawai'i is the intellectual heart of our community, but it is also an important driver of our economy.

Last year, you gave UH $8 million for the planning of a permanent West O'ahu campus. This session, I am asking you to authorize the $142 million needed to build it. This permanent campus in Kapolei will accomplish two objectives: one, educational, and the other, economical.

More than 30 years ago, Kapolei was designated as the Second City. West O'ahu will help transform Kapolei into a college town. It will be to Kapolei what the University of Oregon is to Eugene, Ore., and what UC-Irvine is to the City of Irvine. The economic benefits are self-explanatory.

President Evan Dobelle has said he would like to develop UH-Manoa to become the Berkeley of the Pacific. UH-Manoa is a fine research university, but it is no Berkeley. If we want UH-Manoa to step to the next higher level, to become — no, to rival — Berkeley, then we must stop requiring UH-Manoa to be all things to all people. Admission standards for freshmen must be raised, curriculum reviewed, good alternatives must be created for those who can't make it to UH-Manoa.

Nothing can elevate the quality of life in a society like a first-rate education system. Hawai'i is not quite there yet. We can get there if we dream big and do big things. After all, nothing big has ever been done by people who think small.

If we want to improve public education, we need to invest. Interest rates are at an all-time low. I doubt it will get lower. Moreover, our local economy could use a boost in construction spending.

Humble beginnings

This is my 28th year in public office. It will be my last. Every time I reflect on the journey I took to get here, I am truly amazed. I am the luckiest man in the world.

I was born and raised in Kalihi. I attended public schools, got into some minor trouble with the law, nearly flunked out of high school, married at 19, and at 23, finally woke up and moved to California to get an education.

I graduated from UCLA in 1968 and got my law degree in 1971. For me, it was as if I realized the impossible dream. America is a great nation because it is the land of second and sometimes even third chances.

I got my start in politics from another Kalihi boy — Gov. John A. Burns. Gov. Burns appointed me to a very important public commission.

After the swearing-in I asked him why he had appointed me to such an important commission. He looked me in the eye and said, "Well, Ben, there are not too many young Filipinos from Kalihi who become lawyers."

He did not have to explain — I understood what he meant and what he stood for.

In 1974, I decided to run for the House of Representatives. I was running in Pearl City. The political pros — the guys who think they know everything — laughed and said a Filipino boy like me didn't have a chance in a heavily Japanese American district like Pearl City.

Well, they were wrong — dead wrong. They misjudged the fairness and decency of the people there. Like I said earlier, America is the land of second chances.

I tell you this story so you understand why I believe that there is no greater calling than public service. And why I believe that those of us who are in this business have an absolute duty to do what is right for the people, regardless of the consequences.

This is our last session together. And this is the first time you've publicly asked for advice, so let me offer it:

I really believe that the best kind of politics is getting the job done. That's what I've tried to do in my 28 years of public service. And even if you don't get it done, I believe the people will know how hard you tried and respect you for it.

Courage and sacrifice

You know, recent polls show that after Sept.11, there was an upsurge in the public's respect for public officials. I suppose some of that was due to the fine leadership shown by President Bush and Mayor Giuliani, but I can't help but believe it was mostly because the American people were awed by the courage and sacrifice of the firefighters, police and rescue personnel who lost their lives at the World Trade Center.

Those firefighters, police officers and rescue personnel were public servants — like you and me. And they lost their lives because they did their job.

Sen. Warren Rudman, a Republican, when asked by Time magazine about his retirement from the United States Senate, said that when he was a Marine captain serving in Korea, he commanded young Marines who were ready to risk their lives for their country, and many lost their lives. But he was disappointed with his colleagues in the U.S. Senate, he said, because too many of them were not even willing to risk their political lives for their country.

So for once, put politics aside. Let's discuss the issues frankly and truthfully so the people know what's at stake. We owe them the truth. We owe them the courage and wisdom to make wise decisions. We owe them hope. We owe them a better and greater Hawai'i.

Do your job to make Hawai'i better — even if it means you may lose your job. You owe it to the people, and most of all, you owe it to yourselves.