The Governor’s State of the State Address

Photo byREEET JANKonUnsplash

I watched part of the Governor's State of State address to open the next legislative session in Hawaii. I took several points out of Governor Green's State of the State address.

Homelessness

• According to the numbers he mentioned, 43 out of 10,000 are homeless in Hawaii. He also said 44% of the households in Hawaii are ALICE families. ALICE is an acronym for Asset Limited, Income Constrained, Employed. The household income is more than the federal poverty level but not enough to afford to live in Hawaii.
• The Governor wants to create 20 Kauhale villages where the residents share cooking and cleaning space.

Tourism

• Another area the Governor touched on was assessing a one-time $25 climate impact fee for all visitors to Hawaii. How will the G.E.T., Transient tax, and the county's 3% tax assessed to hotels, short-term rentals, and other taxes affect the restaurant industry? It's a domino effect.
• Let's say fewer visitors arrive on the islands. That means less revenue coming into the state. Fewer visitors also means fewer people visiting restaurants. It will force restaurants and retailers to increase their prices.
• The climate fee will temporarily add additional revenue to the state, but what will it affect other industries that rely on island visitors?

Maui Wildfires

• The Governor also mentioned the state has $600 million allocated to the recovery costs for Maui residents affected by the Maui Wildfires.
• Is it a low-interest loan to those affected by the wildfire?
• Is it a one-time payment to the families and households affected by the Maui Wildfire?
• The quickest way to collect revenue is through taxes and fees, but how does it lower the prices and the cost of living in Hawaii?
• March 1st is also the date the Governor set for homeowners of short-term rentals on Maui to volunteer their rentals for long-term housing for displaced families. If not, in his previous speeches to the media, he said he would "lay the hammer" on short-term rentals.

Final Thoughts

Increasing revenues through additional fees was a common theme in the Governor's State of the State address. I also heard that spending money to build the new Aloha Stadium is part of the plan. I did hear additional revenue coming into the state coffers, but I also heard spending. What I didn't hear was how the Governor would help decrease the housing and living costs in the state.

The ALICE household number of 44% is large. That's 44% of households living paycheck to paycheck. The numbers are probably even higher.

I also did hear a lot of applause in the audience. Maybe there were more optimistic people in the audience with the Governor's ongoing plans.