The state is looking to fast- track $1.86 billion worth of capital improvement projects to stimulate the economy and create jobs.

The 1,521 projects include highway improvements; maintenance and new construction at public schools and university and community college campuses; public library upgrades and repairs; small boat harbor upgrades and expansion; Hawaiian Homes construction; public housing facility repairs and renovations; and hospital and healthcare facility improvements.

Gov. Linda Lingle announced the plan at a news conference yesterday with the mayors of Kaua'i, Maui and the Big Island at her side. Lingle said she would need the mayors' help to expedite the permitting process for the projects.

Honolulu Mayor Mufi Hannemann was absent and said later he would cooperate with Lingle's economic stimulus plan if Lingle would help him with issues such as an ongoing dispute with the federal government over wastewater treatment and the proposed $4.28 billion rail transit plan.

The projects identified by Lingle have already been budgeted and approved by the Legislature, and construction could begin within the next 18 months. The projects are set to be put out to bid by September 2009 and awarded by June 2010, Lingle said.

Lingle said she wants to stimulate the economy because "no one is coming here to rescue us. It is up to us."

She added: "My bottom line is it can't be business as usual. That won't work in these times."

The state will pay for the projects with a series of bond issues or by taking money from $3 billion it has in the bank, Lingle said.

ECONOMIC WOES GROW

Lingle's plan was unveiled as Hawai'i's economy struggles through rising unemployment, plummeting visitor arrivals and increasing bankruptcies.

Local business has been suffering, evidenced by the shutdown of Aloha and ATA airlines and the loss of two cruise ships. A national recession and the credit crisis on Wall Street have cut into visitor arrivals and helped push the state's unemployment rate to 4.5 percent.

"It is about jobs. On a daily basis, the hardest thing that we can try to say to our membership is that everything is going to be OK," said Perry Artates, executive director of the Operating Engineers labor union. "What the governor has put together has really uplifted the membership in our industry."

The Lingle administration's focus on increasing public construction activity comes as private building permits have seen an 8.8 percent decrease to $240 million in the first nine months of 2008, and the number of permits for residential housing units statewide have decreased by 30.6 percent to 3,937 units, according to the state.

During the same period, government — federal, state and county — contracts awarded also decreased by $72.2 million, or 9.6 percent, according to the state.

To implement Lingle's plan, the state will need the cooperation of the counties. Maui Mayor Charmaine Tavares, Big Island Mayor Billy Kenoi and Kaua'i Mayor Bernard Carvalho all lauded Lingle's plan yesterday, saying it would create jobs and pump money into the county economies.

"There are airports, harbors, highways and schools. This is a balance. We have a real balanced look," Tavares said.

Hannemann was busy yesterday dealing with fallout from recent flooding and did not attend Lingle's news conference.

Under her plan, the bulk of the projects, $1 billion worth, would take place on O'ahu.

MAYOR WANTS SUPPORT

Hannemann said later he agrees with the need to work fast to stimulate the state economy, but said before the city starts permitting state projects en masse, he would like to see some cooperation and support from the state on long-standing city issues.

He also said he is concerned that the state's list would supersede city projects that are also ready to go within the next 18 months.

"They need our help to expedite the permitting process and that's fine but I need some help with some things here. I just want them to be a little more helpful with issues that I've dealt with while I've been here," said Hannemann, speaking outside Honolulu Hale yesterday.

"I think it's all about the devil in the details. I've been saying for years that we need help with wastewater issues ... that there are delays in (state) reimbursements after the city front ends funds ... and they've not been fully supportive of transit. We're prepared to help and be supportive, but we would like them to be a lot more forthcoming with the help they lend the counties," Hannemann said.

Hannemann, who in his capacity as a member of the U.S. Conference of Mayors has been pushing for more than $400 million in federal funds for ready-to-go infrastructure projects on O'ahu, said now is a good time to re-evaluate positions on long-standing city and state issues.

The previous request from Honolulu to the federal government on behalf of the conference's MainStreet Economic Stimulus Package sought 28 projects costing $456 million and creating about 2,900 jobs.

The updated list added about $55 million for 20 new projects, primarily for water system improvements, and street and sidewalk repair. In addition, two other projects were expanded.

If all the new projects were included, about 622 additional jobs would be created.

The state did not have an estimate on the number of jobs that would be created by its plan.