As a steady rain fell outside, House Minority Leader Galen Fox called it "a beautiful day" when, for the first time in 40 years, a Republican governor ­ Linda Lingle ­ was on hand for a legislative opening.

Democrats still outnumber Republicans 56-20 in the Legislature.

As Hawaiians rallied in the State Capitol atrium to push for ceded lands payments and federal recognition, House Speaker Calvin Say announced that legislators have found a way to make a $10.3 million deferred payment expeditiously without having to go further through the legislative process.

Say credited OHA chairwoman Haunani Apoliona; Ezra Kanoho, chairman of the House Hawaiian Affairs committee and committee vice chair Sol Kaho'ohalala with working out a solution. "Through your efforts our obligations to the Hawaiian people will be fulfilled," Say said.

However, Apoliona, who had just finished addressing an OHA rally at the Capitol, said she wasn't sure what "solution" Say was talking about, since OHA officials are still waiting for payment that they believe can be made immediately under existing laws.

"We've been having discussions back and forth, and we've decided that we're talking about $2 million per quarter and it's been six quarters, so now it's more like $12 million," Apoliona said. "They keep saying they want to pay. ... I'm hoping it won't be too many days before this money will pass to OHA."

Transit debate continues

Meanwhile, Senate President Robert Bunda, D-22nd (North Shore, Wahiawa), threw a new wrinkle into O'ahu's transit debate. At a time when the city is moving forward with its Bus Rapid Transit program and Lingle is expected to soon unveil her own proposals, Bunda said, "I believe it's time we dusted off our plans for a light-rail, mass transit system" linking central areas of O'ahu with the city's proposed plans for urban Honolulu.

"Not only will mass transit speed the movement of people and ease traffic, but it will create construction jobs, develop new business centers at key terminals, and provoke us into rethinking the way we live and work, much like the people of great cities around the world," he said.

Bunda said U.S. Sen. Dan Inouye and Rep. Neil Abercrombie have expressed a willingness to lobby for federal money to underwrite the system.

The Legislative session consists of 60 working days through May 1. Nearly a third of the lawmakers are new: 7 of 25 in the Senate and 16 of 51 in the House.

Senate Minority Leader Fred Hemmings said the new Republican administration will help change the course of state government. "Our message to the majority party is to keep an open mind on the issues, be willing to embark in new directions, and to find new solutions to old problems."

Say said lawmakers will do what is best for citizens. "In this time of turmoil, Hawai'i voters made a historic decision," he said. "We elected the first woman as governor in our state's history. The fact that she is also a Republican is not my concern. She is our governor, we need each other's help and we must find a way to work together to meet the challenges of our time."

Bunda also pledged cooperation with Lingle, but warned members not to surrender their principles for the sake of agreement.

"I intend to advocate a true spirit of cooperation and collaboration," he said. "But we do not intend to sacrifice common sense solutions in our quest for consensus.

"Gov. Lingle, the members of the Senate make this pledge to you and your new administration: We promise open and honest communication," he added. "But we are not without our own agenda for change. We are not blind to the needs of the people who elected us. And we are not without a will of our own to set a record of achievement that is responsive to the will of the people."

Excise tax reduction sought

Republicans will introduce legislation, such as reducing the general excise tax and eliminating it completely from food and groceries, and reducing the state work force through attrition.

In education, the Republicans will support creating more charter schools and finding equal funding for them, as well as decentralizing the Board of Education.

"As Senate Republicans we are committed to no new taxes, no new fee increases, and hands off all the Hurricane Relief Fund. From this moment forward we must measure the effectiveness of government agencies not by how much they spend, but rather by their success in getting the job done. This is why we are also advocating a zero-based budgeting process. It's all about accountability," Hemmings said.

Fox, the House minority leader, called jobs and education the top priorities for the state.

"It's the lack of jobs that is forcing families apart, and sending our friends to the mainland," Fox said, echoing a sentiment Lingle used in her inauguration speech. "Most transplanted ex-Hawai'i residents would rather be home, if they could just make a decent living here."

Education examined

Bolstering the public education system is a key part of having "a knowledge-based society," Fox said. "To seize our future, we must improve our public education now ­ we need action, not studies."

Bunda noted the uncertainties looming before the state, such as a struggling national economy and the potential impact of war. At the same time, he said the state is also facing the same fiscal situations it has dealt with for years.

"Although our current economic condition may look bleak, I believe it's really an opportunity to restructure the way government does business and to restore public confidence in our institutions, or as some like to call it, a new beginning," Bunda said.

He said the biggest and most immediate hurdle in the session is balancing the state budget, and repeated that the Senate is opposed to Gov. Ben Cayetano's proposal to dipping into the Hawai'i Hurricane Relief Fund.

That means the Legislature will have to make changes to grow business and create more jobs by looking "beyond the traditional, beyond the tried-and-true," he said.

Bunda said tax credits for hotel construction and renovation will stimulate the economy, and noted that Lingle has publicly expressed her support for such incentives.

Bunda also said the Senate will explore new ways to support the agricultural industry and build a stronger sports industry.

Bunda also said the state must deal with its drug problems and said the state should "definitely consider" a secure, long-term treatment facility for drug offenders. He suggested introducing a pilot drug-testing program for students and allow educators to be made aware off students' criminal histories.

Optimism 'eroding'

In Say's speech to the House, he said that with the threat of war and a faltering national and state economy and scandals in business and government, "the optimism of many of us has eroded." He called on House members to help restore public trust in government.

He said campaign finance reform will be a priority, as will significant reforms in school administration. "These reforms will give our schools greater authority and flexibility, help them to obtain needed resources, and build and manage community support. Most important of all, these reforms will provide new standards for accountability."

Regarding economic development, Say said the state needs to diversify its economic base and lessen dependence on outside resources. He will propose a targeted job creation tax initiative for local businesses and the use of tax incentives, as long as the companies that use them are held up to a standard.