Three years back, Randy Francisco heard Gov. Neil Abercrombie’s review of the state’s economy. It was bleak. The next year, it went from bleak to upbeat. “Last year, he was very upbeat,” said Francisco, Kauai Chamber of Commerce president. “So I
Three years back, Randy Francisco heard Gov. Neil Abercrombie’s review of the state’s economy.
It was bleak. The next year, it went from bleak to upbeat.
“Last year, he was very upbeat,” said Francisco, Kauai Chamber of Commerce president. “So I want to learn how upbeat you are this year.”
Turned out, very.
“Thank you for setting me up, Randy,” Abercrombie said. “I appreciate that.”
The governor chuckled, as did the crowd of about 200 gathered at the Sheraton Kauai Resort for the 16th annual governor’s luncheon Thursday.
In the next 30 minutes, Abercrombie delivered a fiery, forceful, pointed speech with a main theme: The economy was in bad shape when he was elected in 2010, but through his leadership and tough decisions, it bounced back and is doing well today.
Hawaii has gone from an estimated $225 million shortfall in December 2010 to a positive balance of $800 million last year — a billion dollar swing, he noted.
“I’m building up the reserves, so in case we get hit with anything economically again, we’re going to have a reserve plan and the credit rating agencies recognize that,” he said.
When he came into office, he said the state’s gross domestic product was in the negative. Jobless claims were up. Construction was down. Services were cut and reductions were made to health care and benefits for state employees. The general excise tax was shrinking and he couldn’t get a financial report on the state’s economic health.
“That’s how bad things were,” Abercrombie said. “We were months behind.”
Most supported his efforts to turn things around. Some didn’t. He refused to apologize for taking a strong stance that upset some.
“Let the people who didn’t put their paddle in the water and pull deep like the rest of us explain to you why they should have been treated differently than everybody else,” he said.
“That’s part of the political equation that’s going to be decided very shortly,” he said in references to this year’s election.
“I’ll tell you, my job is to do the right thing by everybody in order to get us back in a stable situation so we could move forward,” he added.
It’s worked, he said. Tourism, construction and technology are up. The state’s jobless rate is 4.1 percent, among the nation’s lowest. The state is meeting its requirements to fund health care and pensions for its workers without raising taxes.
In three years, he said the state went from negative to stable to positive.
“For the first time in seven years, we not only have an annual financial report that is up to date, it shows our assets have passed our liabilities.”
The Democrat had high praise for Kauai. He highlighted the Pacific Missile Range Facility, Kauai Community College and Kauai Coffee as leaders on the economic and social fronts. He said Kauai’s economy is among the healthiest in the state.
The island with a population of just under 70,000 is adjusting well to changes in agriculture, defense and tourism, he said. It’s recent debates shows its vitality and vigor, he said.
“When you put together the combination of tourism, technology, agriculture, education, construction and defense businesses, that is remarkable for the size, the population of the island,” he said.
Near the end of his speech, the governor asked the crowd question.
“How many of you here have read the latest Council of Revenues report?”
No hands went up.
“Waiting. Waiting,” he joked.
“Don’t feel bad,” he said. No one, in the state, he said, has read the report — “except me.”
The report, he said, indicates a growing state economy, at least 5 percent to 2020.
The secret, he said, is confidence.
“If you have confidence the economy is solid, that the workforce is solid, the direction and policies of government is solid, if you have confidence in all those things, you’re going to have confidence in investment. You’re going to have confidence in hiring, you’re going to have confidence in making plans for the future.”
He called on people to “look at the facts, not the political rhetoric” and draw their own conclusions on the state’s health.
“Get your reality from the facts on the ground,” he said. “If you do that, I trust and have faith and you’ll conclude you can have confidence in Kauai’s economy, Kauai’s future and the future of the state of Hawaii.”
