Hawai'i workers could set aside pretax earnings matched by their employer for job training and education, under a measure moving in the Legislature.

The House Economic Development and Business Concerns Committee yesterday advanced proposals by Gov. Linda Lingle that aim to develop a competitive workforce, including establishing a so-called "lifelong learning account" program and tax credits for training employees. Other components of Lingle's proposal include a "Kama'aina Come Home" program and rapid-response customized worker training.

The rapid pace of changing technology requires companies and workers to keep up their skills to remain competitive, Lingle told the committee during yesterday's hearing. Lifelong learning accounts — employer-matched savings accounts for training and education — enable workers to take personal responsibility for upgrading their skills and help employees and employers leverage resources for training, she said. Low-income workers would receive a partial subsidy from the state for training.

Lois Tanaka, a 46-year-old cocktail waitress at the Hilton Hawaiian Village Beach Resort & Spa, wondered how many Hawai'i companies would support the idea. But if her employer made it available, she said she would be interested in setting aside money to upgrade her computer or management skills.

"I think it may be a good idea," said Tanaka, who has been working at Hilton for 22 years. "I've thought about going back to school."

The program would be voluntary, but employees and employers who contribute to lifelong learning accounts would be eligible for tax credits of up to $500. A combined total of $1,000 could be applied to up to two part-time community college courses, the state said. The tax credits would cost the state about $1.7 million in tax revenue losses a year, according to the state Department of Taxation.

Lingle's workforce development measure drew the support of various workforce development officials and business groups who stressed that highly skilled workers are crucial for companies and the state to be competitive. Some said many small businesses find it difficult to fund employee job training or education programs on their own.

"It's a critical need today," said Jim Tollefson, president and CEO of The Chamber of Commerce of Hawaii.

Outrigger Enterprises Group president and CEO David Carey said he is open to the idea of matching employees' contributions to lifelong learning accounts, but said "the devil's always in the details."

"The idea of creating an employee savings plan for education is a really good one ... but we haven't studied it," Carey said. "It would seem like a good idea to do if it was meaningful enough to make a difference. ... If it's a positively perceived benefit by our employees, we'd be very inclined to consider it. We spend a lot of money on education anyway."

Erwin Hudelist, president of Hagadone Printing Co., said he likes the lifelong learning accounts because they are voluntary but also encourage both employees and employers to find ways to upgrade workers' skills. He said he would "most likely" support employee lifelong learning accounts, noting that the company already spends "a substantial amount of money" to train employees.

"We don't just want to create another cheap labor pool," said Hudelist, who is also a member of the Hawaii Workforce Development Council. "You want to increase the level of education and know how to create better-paying jobs and stronger companies."

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.