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The Honolulu Advertiser
Updated at 4:25 p.m., Monday, January 26, 2009

State must avert fiscal pitfalls, with eye to future

Gov. Linda Lingle's State of the State Address yesterday provided a long-term, optimistic vision of Hawai'i's "preferred future." But Lingle also noted that state leaders face hard choices right now: finding the least painful way to close a $1.4 billion gap in revenues and balance the budget.

It was a sobering speech, to be sure, one calling for "shared sacrifice" by state employees and contractors in order to deal with falling projections for tax revenues.

The administration has posted more about its proposed bills (hawaii.gov/gov/

initiatives/2009). But the listed economic legislation includes only a few details about its most critical task: preserving the social safety net that residents will need more than ever, in a declining economy.

This must become a priority as the governor and lawmakers work together to protect the most essential elements of social service, including health and safety.

It was encouraging to hear the governor pledge to work collaboratively through the fiscal crisis with elected lawmakers. That resolve — from both sides — will be key in brokering deals that are necessary but sure to be controversial:

• Pay and benefits packages for the public-employee unions that are less costly.

• Revisions to tax-credit programs that will recapture some revenue without derailing incentives for business development.

• Pay-raise curtailment and other belt-tightening measures that will apply to all branches of government. "Shared sacrifice" means everyone.

Among her more promising ideas: a program to give Isle farmers a boost through policies that promote buying local farm produce; and streamlining regulation of communications under a new commission that would help Hawai'i create 21st-century data networks for business and education.

Lingle described herself as an optimist, a good trait at times like these. In addition to optimism, though, the state will need leadership to keep such initiatives moving and a preferred future in view, despite the dark clouds.