Governor David Ige delivers his State of the State address Monday in the Governor’s Ceremony Room. Ige said he is focused on the digital economy to boost Hawaii financially, with an expansion of broadband services to rural areas like Hana. Photo courtesy of the Governor’s Office
Amid the pandemic, Gov. David Ige sees broadband as a possible boost to Hawaii’s economy, which is collapsing under one of the country’s highest unemployment rates.
During the state’s annual speech Monday morning, Ige offered a stark contrast from last year, when Hawaii had the nation’s highest unemployment rate and few had heard of the novel coronavirus.
Now Hawaii is among the hardest-hit states in terms of job losses and economic activity, he said.
“And in the face of a life-threatening virus, what’s the sweet spot between keeping everyone healthy and keeping the economy going?” asked Ige.
Noting that more than 580,500 Hawaiian workers had filed unemployment claims over the past year, the governor reiterated the state’s need to move away from an economy dependent on tourism.
Among the short- and long-term recovery initiatives, Ige emphasized that Hawaii would benefit from the shift to a digital economy that can serve as one “Foundation, endowment” for the country’s economic resilience.
In a digital economy, the state can survive future disruptions regardless of its economic engine; it doesn’t matter where jobs are located; the local workforce can compete globally; and children don’t have to move to the mainland to find jobs, he said.
“Therefore, in the wake of the pandemic, I call for the creation of an action plan to not only restart our economy, but to upgrade it.” Ige said. “To create Hawaii 2.0, if you will.”
The governor highlighted an expansion of broadband services, particularly in rural areas like Hana.
“I can assure you that broadband will be a priority for the state for years to come,” Ige said.
Ed Sniffen, deputy chief of the State Department of Transportation, will accelerate his pilot project to bring broadband to rural communities. Using federal, state and private resources, the project will focus on Hana, Puna, Ka’u, Nanakuli, Wai’anae, Waimanalo, Kalihi and Kapa’a.
Rep. Lynn DeCoite said Monday afternoon access to quality broadband service is an issue in her district and she is pleased Hana will be part of the DOT pilot.
“During the closure, we had to obtain special permission for students at Hana High and Elementary School to use school WiFi from cars in the parking lot – it was the only way some students and their families had access to their.” online materials for distance learning”, She said. “This pilot is a great first step, I don’t have all the details yet but I’m optimistic and hope other areas will get access as well.”
During a recent online East Maui Reservation Project meeting hosted by Sen. J. Kalani English and DeCoite, both representing East Maui, Molokai and Lanai, officials discussed plans to expand internet service to the rural area.
English said during the meeting that Hawaiian Telcom is already working on plans to get better connectivity over the back and to Hana. He estimated that in five years all hard-to-reach rural areas should have cell phone coverage and internet access.
The DOT did not immediately respond to questions about project details Monday.
Ige said during his speech that a broadband HUI of more than 200 local stakeholders has formed during the pandemic with the goal of developing a broadband infrastructure that is accessible and equitable for all.
The governor said the pandemic has highlighted that of the state “Digital Injustice”.
He added that part of the state’s job is to ensure that a student in Nanakuli can access an online lesson plan just as easily as a student in Kahala. Also, a Federal Communications Commission grant will support a telemedicine initiative to connect low-income patients at high medical risk with healthcare providers.
“A crucial part of reprogramming our economy is also creating a healthy nationwide broadband network,” Ige said. “All of us have dramatically increased online activities such as online learning, teleworking, telehealth, and staff development and training.”
Ige said his legislative package this year includes a bill to create an office for broadband and digital equity to oversee efforts and ensure the state gets its share of $7 billion in new federal funding for broadband infrastructure and digital equity programs.
Emphasizing a diversified economy, the governor said Hawaii’s reliance on tourism makes it vulnerable to sudden and unexpected changes.
“We have been here before. In the 1970s, agriculture alone could not rid us of our addiction to tourism. Neither does technology in the 21st century – not by itself.” Ige said. “But it can be used to support a multi-pronged approach to greater diversification – even as we strive to get tourism back on its feet.”
At a time when governments are being asked to provide everything for everyone, every state is facing historic revenue shortfalls, Ige said.
In Hawaii, measures to address the deficits include a $402 million cut from the current budget, a transfer of $345 million from the Rainy Day Fund, and the removal of $350 million from state programs.
For the first time in state history, $750 million was borrowed to support payroll.
Meanwhile, revenue is unlikely to fully recover to pre-pandemic levels until 2024, he said.
Ige brought some good news for the economy.
The state Council on Revenue recently forecast that Hawaii’s economy will beat previous dire predictions, generating nearly $6.3 billion in tax revenue for this fiscal year.
“As a result, we were able to adjust the cuts proposed by the DOE and now have approximately $123 million to restore to our classrooms.” he said.
The construction industry was also a bright spot. Investments of US$1.1 billion are expected in government capital improvement projects. Federal transportation projects — like airports, ports, and highways — will add another $1.1 billion. The private sector is expected to contribute another $10 billion and thousands of jobs to restart the economy.
Ige began his State of the State address with an emphasis on public health. He said the state has taken tough but necessary measures, such as being one of the first to mandate pre-travel testing and quarantine procedures.
“It’s one of the reasons we lead the nation with the lowest COVID infection and death rates,” he said.
On February 28, Hawaii State Laboratories was among the first in the country to begin testing for the coronavirus. A stay-at-home order was issued on March 25. On March 26, a 14-day quarantine for travelers was among the first in the country.
He said despite the massive changes Hawaii –– and the world — are being forced to make, there is hope for the future.
Ige said the state is implementing a comprehensive vaccine distribution strategy in each county. It will also work with the Biden administration to speed up the distribution of vaccines to everyone.
* Kehaulani Cerizo can be reached at [email protected].
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