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The Honolulu Advertiser
Posted on: Sunday, December 27, 2009

Economic woes dominated year


BY MICHAEL TSAI
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Clockwise from top left: Damien was sainted; statehood’s 50th anniversary; furlough Friday rally; USS Missouri in port; Hawaii Superferry leaves; UH football coach Greg McMackin apologizes; UH volleyball coach Dave Shoji wins No. 1,000; and Michelle Wie earns her first LPGA victory.

Advertiser library photos

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Hawaii news photo - The Honolulu Advertiser

Barack Obama takes the oath of office with his wife, Michelle, and daughters Malia and Sasha at his side.

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Hawaii news photo - The Honolulu Advertiser

The decision to cut 17 days from the public school calendar drew heavy criticism.

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Hawaii news photo - The Honolulu Advertiser

Linda Lingle

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Hawaii news photo - The Honolulu Advertiser

Neil Abercrombie

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Hawaii news photo - The Honolulu Advertiser

The state established an inoculation program as swine flu became a top public health concern.

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Hawaii news photo - The Honolulu Advertiser

The USS Port Royal cost $40 million to repair.

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With the end of a tumultuous 2009 upon us, we might be excused for believing that every local news story this year in one way or another bore the whiff of our continued economic struggles.

This was, after all, the year when furlough Fridays entered our local lexicon, when it seemed we were as likely to bump into friends and neighbors at the unemployment office as at the neighborhood grocery store, when thousands cut personal expenses yet still found ways to support local libraries or high school sports programs or one of the scores of social service programs struggling to provide help to the growing population of the needy.

Yet, there was more to 2009 than just the state of the economy.

For those end-of-days types, it was a year with its share of tragic and bizarre crime, a year of devastating human tragedy across the South Pacific, a year of frightening pandemic.

Yet, it was also a year in which a local son assumed the highest office in the nation, when a Belgian priest who devoted his life to Hawai'i's outcasts ascended to sainthood, and when the exalted sovereign of a former enemy returned to the Islands in a show of continued friendship.

And it was another year in which good news and bad was often determined by our own political, social, cultural or religious proclivities. A civil unions bill died in the face of vehement opposition from a coalition of religious interests. The Superferry left for more hospitable waters, becoming a cautionary tale on the dangers of fast-tracking. And the 15-year battle over ceded lands ended with a compromise between defendants and the state and a Supreme Court dismissal of the remaining claim.

We bid welcome to a new police chief and said goodbye to two prominent City Council members, a venerable civil rights leader, a beloved kumu hula and a legendary newsman.

In sports, Michelle Wie finally earned PGA victory No. 1 while University of Hawai'i women's volleyball coach Dave Shoji notched career win No. 1,000. UH women's basketball coach Jim Bolla lost big on and off the court and UH football coach Greg McMackin recovered from a regrettable slip of the tongue (and his team's mid-season swoon) to guide the Warriors to within one win of a post-season berth.

Indeed, the End of the Aughts was a tale of an embattled economy and so much more. Here, then, are the top news stories of the year, as determined by Ho- nolulu Advertiser editors and reporters.

IT'S THE ECONOMY

Gov. Linda Lingle's recently announced intention to delay tax refunds, redirect hotel-room tax revenues, raise taxes on insurance commissions, end life insurance payments for state workers and retirees and end the state's reimbursement of some Medicare costs for spouses of retired state workers was just the latest in a year full of grim announcements from lawmakers, economic forecasters and private business leaders.

With experts predicting a $1.2 billion deficit through June 2011, thanks in no small part to sagging tourism counts, the state's efforts to cut costs have affected every department and by extension nearly every Hawai'i resident in some fashion. Across-the-board cuts left many scrambling to preserve their core services with reduced staffing and reduced hours. Some got creative, like the Department of Land and Natural Resources, which softened the blow by leasing unused properties. But none escaped entirely as everything from fish stock breeding to programs for the disabled danced on the budgetary chopping block.

The cutbacks could even affect 2010 elections in Hawai'i, considered one of the most pivotal in recent memory with races for governor, lieutenant governor, Honolulu mayor, and Congressman Neil Abercrombie's seat.

Abercrombie is resigning from Congress to pursue the governor's position. Former congressman Ed Case, state Senate President Colleen Hanabusa and Hono-lulu City Councilman Charles Djou are all in contention for the vacated seat.

And the state Office of Elections has said it may not be able to afford a special election for the seat.

Perhaps no decision was as hotly debated as the mandatory furlough of thousands of state employees.

Proposed as a better alternative to deep cuts in personnel, the furlough program altered the rhythm of Hawai'i's work week — and not just for the specific departments affected. Before long, restaurants and other businesses that depend on state worker traffic were also forced to adopt a four-day-week schedule.

After lengthy bargaining, public school teachers represented by the Hawaii State Teachers Association also agreed to take 17 furlough days, equivalent to an 8 percent pay cut. The move angered many parents who objected to their children losing instruction days and who were forced to secure child care for the off days. The furloughs also elicited a rebuke from U.S. Secretary of Education Arne Duncan.

The University of Hawai'i also felt the economic crunch, with classes consolidated or canceled (despite increased enrollment systemwide) while administrators and the faculty union tried in vain to reach accord on a new agreement.

Furloughs, retirements and natural attrition allowed the state to reduce the number of planned layoffs, initially estimated at 1,100. Yet, some 650 state workers found themselves out of work starting Nov. 13, adding to a roster of unemployed that strained the coffers of the state's unemployment insurance fund.

The unemployment rate stood at 4.9 percent in November 2008 but by May had climbed to a 31-year high of 7.4 percent. Neighbor Islands were hit the hardest. Last month, Hawai'i County recorded 10 percent unemployment, with Maui County (9.3 percent) and Kaua'i County (9.2 percent) close behind. The statewide unemployment rate leveled off somewhat late in the year, but still lingers around 7 percent.

The economic downturn was further evident in the number of Isle bankruptcy filings, which rose 40 percent to a four-year high of 2,906.

Many of the filings appeared to be housing related, as struggling residents turned to bankruptcy to stave off foreclosure.

Notable business bankruptcies included filings by the 109-year-old Honolulu Symphony, 'Aiea-based Hawai'i Biotech and the Honolulu Medical Group.

The news media, which has been struggling with declining advertising sales for years, also felt the pinch. After suffering a 30 percent decrease in ad revenues from local businesses over the past three years, Raycom, owner of local TV stations KHNL and K5, merged news operations with KGMB9 in October. The move resulted in a staff reduction of about one-third, including all but four of KHNL's on-air talent.

The overall economic malaise hit social service organizations particularly hard as those devoted to feeding the hungry and caring for the homeless had to find ways to serve a growing roster of clients with fewer resources.

A November survey of 106 health, human service and housing agencies conducted by the Hawai'i Alliance of Nonprofit Organizations and PHOCUSED, a nonprofit consortium, found that fewer than half of respondents felt they were still able to provide high-quality service, while more than half had to cut staff and/or reduce programs or services .

As the year progressed, those with vested interest in particular programs and services organized targeted fundraising efforts.

The Save Our Sports program raised more than $1.3 million for local high school sports, drawing support from a wide variety of local businesses. Two separate fundraising drives for Hawai'i's public libraries took in nearly $270,000 by year's end and helped embattled libraries across the state keep their doors open amid staffing shortages and other budget considerations.

Local fund drives were also initiated to provide assistance for those in the Philippines and Sämoa following a series of disasters in September.

Hundreds were killed and thousands left homeless when a pair of typhoons hit the Philippines, causing widespread flooding. Days later, a massive 8.3 undersea earthquake triggered a tsunami that smashed into Sämoa and American Sämoa, leveling villages and killing more than 170 people.

The local response to both disasters was swift, with benefit concerts, individual collections and organized fund drives raising hundreds of thousands of dollars in donations. The actual level of local support was likely much higher as many residents with close ties to Sämoa and the Philippines were believed to have made direct contributions to friends and family in the affected areas.

Hawai'i's spirit of giving was exemplified by eBay founder Pierre Omidyar and his wife, Pam, who pledged $50 million over six years to the Hawai'i Community Foundation. Part of the donation will be used to fund a Community Stabilization Initiative aimed at helping families hurting from the recession.

While experts have differed in their timetables for economic recovery, hoteliers continued to invest in the future. In January, the Royal Hawaiian Hotel reopened following an $85 million redesign and renovation. Last month, the luxury hotel-condominium Trump International Hotel Waikiki Beach Walk held a soft opening with a Hawaiian blessing and live music; a grand opening celebration is scheduled for next month.

GOLDEN ANNIVERSARY

The state of the local economy was just one factor in what proved to be a subdued commemoration of Hawai'i's 50th anniversary of statehood.

Studiously avoiding the pomp and circumstance that marked the state's silver anniversary in 1984, organizers emphasized that official observance of the milestone was to be viewed as a commemoration, not a celebration — an acknowledgement of a political and social environment in which many Hawaiians and their supporters view statehood as a negative development in the history of the host culture.

In lieu of parades or fireworks, the state sponsored an ambitious all-day conference aimed at addressing the next 50 years.

To be sure, the close of Hawai'i's first 50 years as a state seemed auspicious as Hawai'i-born Barack Obama was sworn in as the 44th president of the United States. Obama's inauguration speech was carried live by every major local news outlet and his impromptu shaka flashing was greeted by raucous applause in homes, offices and bars around the state.

Obama's rise to the presidency raised the profile of his native state in predictable and unpredictable ways. Obama's time in the Islands was approached from various perspectives in news magazines, editorial pages, even Sports Illustrated, while so-called "birthers" made the Hawai'i-Obama connection a central issue in their contention that the president was actually born in Kenya and therefore was not eligible to run for office.

While Obama was settling in to the White House, Japan's Emperor Akihito and Empress Michiko renewed their relationship with Hawai'i with a visit in July. While here, they paid their respects to fallen soldiers at Pearl Harbor, visited a shower tree that then-Prince Akihito planted at Kapi'olani Park 50 years ago, and attended a dinner for the Crown Prince Akihito Scholarship program.

For Hawai'i's Catholic community, the highlight of the year may have been the canonization of Father Damien de Veuster, whose legacy of service to the Hansen's disease colony on Kalaupapa, Moloka'i, made him an iconic figure.

A large contingent of Hawai'i residents flew to Rome for the ceremony, including Audrey Toguchi, whose recovery from cancer was considered one of Damien's two documented miracles. In Hawai'i, Catholic churches hosted live viewing parties and church officials encouraged Catholics and non-Catholics alike to follow Damien's example.

MYRIAD CONCERNS

As a gateway between East and West, Hawai'i was a hot spot of concern as H1N1 developed into a pandemic. The first recorded death in Hawai'i due to the disease was reported in June, the start of a surge in H1N1 cases locally and nationally. Concerns over the disease would have a negative impact on an already struggling tourism industry.

With a second surge predicted for the fall, hundreds of doctors and pharmacies signed up to receive newly developed H1N1 vaccines, but limited supplies left many patients stranded on long waiting lists as the vaccine was distributed according to national prioritization guidelines.

After years of heated debate, O'ahu's $5.5 billion rail transit system inched closer to realization. In October, the city tapped Kiewit Pacific Co. to design and build the first phase of the raised system (Kapolei to Pearl Highlands) at a cost of $483 million. Critics accused Hono-lulu Mayor Mufi Hannemann of rushing the project without first securing federal funds necessary for completion.

While the rail debate continues to rage, other controversial issues came to surprisingly quiet resolution this year.

A bill that would have allowed for civil unions failed to advance through the Legislature. In February , thousands of people representing a host of local churches descended on the state Capitol to protest House Bill 444. The protest was organized by the Hawai'i Family Forum, headed by former state Rep. Dennis Arakaki.

In March, the U.S. Supreme Court ruled that the Hawai'i Supreme Court had erred by relying on the 1993 Congressional Apology Resolution as the legal basis for a moratorium on sales of ceded lands. That prompted an agreement between the state and four of five plaintiffs who had sued to keep the state from selling ceded lands until claims by Native Hawaiians were resolved.

The agreement requires that the governor obtain two-thirds approval from both houses of the state Legislature before selling any of the 1.2 million acres of ceded lands.

The Hawai'i Supreme Court later dismissed claims by the final plaintiff, UH Hawaiian studies professor Jonathan Osorio, effectively ending the 15-year-old case.

Also in March, the Hawai'i Superferry shut down operations after the Hawai'i Supreme Court ruled the company couldn't operate without completing an environmental impact statement. The company filed for bankruptcy in May.

In a more literal sense, the Navy's USS Port Royal, a guided missile cruiser, ran aground in February after what investigators described as a series of navigational errors. The accident damaged coral structures in an area off the Honolulu International Airport's reef runway, prompting some nine months of repair. The Port Royal also required $40 million in repairs (more than twice the amount needed to restore the historic USS Missouri, which entered drydock in October).

Capt. John Carroll was relieved of his command of the Port Royal following the accident.

TROUBLING CRIMES

Last month, Capt. Louis Kealoha was selected to lead the Honolulu Police Department. Kealoha takes over a department that spent the last year pursuing myriad disturbing cases.

• In February, a man stabbed two hikers on the Koko Crater Trail in Hawai'i Kai. After an hours-long manhunt in the area, police arrested Benjamin Davis, who was found naked and hiding in a tree. Both victims were seriously injured but survived.

• A month later, Wai'anae High School teacher Asa Yamashita was stabbed to death while sitting outside the 'Ewa Town Center. The suspect in the case, Tittleman Fauatea, has a history of mental problems and may have mistaken Yamashita for another woman, according to a psychologist who examined him.

• In September, police investigated the alleged rape of a 12-year-old Kamehameha student by two fellow students. Two 13-year-old boys were arrested in connection with the repeated assaults, which allegedly occurred over the course of one weekend in August. The school was widely criticized for not reporting the incident directly to police.

SPORTING LIFE

It was a typically up-and-down year for Hawai'i sports.

In April, UH women's basketball coach Jim Bolla was fired amid allegations that he kicked junior guard Leilani Galdones during a practice. Bolla, who previously had been investigated for bullying players and making comments about a former player's sexuality, has sued the university for wrongful termination.

UH football coach Greg McMackin attracted national attention over the summer when he used a homosexual slur in an offhand comment about the Notre Dame football team, which beat the Warriors in the 2008 Hawai'i Bowl. McMackin held a news conference to apologize for the comment and agreed to a suspension and reduction in pay.

McMackin came under fire again, this time for his sideline abilities, when the injury-plagued Warriors dropped six consecutive games during their 2009 campaign. The Warriors responded by winning their next four games, including an impressive victory over Navy that brought them to within one win of an automatic return to the Hawai'i Bowl. The season ended with a lopsided defeat at the hands of Wisconsin.

UH volleyball fans had plenty to cheer about in October, when coach Dave Shoji notched his 1,000th win with a victory over New Mexico State, and again this month when the team advanced to the Final Four for the first time in six years.

Local golfer Michelle Wie also enjoyed a prosperous 2009. Burdened by premature hype early in her career and slowed by a serious wrist injury two years ago, Wie silenced many doubters by accumulating a 3-0-1 record for Team USA in the Solheim Cup in August, then following up with her first PGA win at the Lorena Ochoa Invitational in November.

FINAL FAREWELLS

In 2009, Hawai'i bid aloha to several high-profile residents who left a lasting mark on the state, including former Hawai'i congressman and lieutenant governor Tom Gill, City Council members Barbara Marshall and Duke Bainum, former KGMB news anchor Bob Sevey, hula great George Naope and local author Ian MacMillan.