By Gail Umeham

Hawaii Gov.Linda Lingle declared Monday (Jan. 24) in her State of the State message that “most people across the state are feeling optimistic…Consumer and business confidence levels are at all-time highs …People see good things ahead, and believe the future is bright.”

High on Lingle’s agenda for that bright future of the state is “lowering the cost of living” through cutting taxes and “increase take-home pay for lower income workers.”  The Republican chief executive made three proposals to that end:  raising the state income tax standard deduction to one-half of the federal standard deduction.  If this proposal is passed by the Democratic legislature “27,000 people will no longer have to file state tax returns,” she said, and “78,000 more will see their taxes reduced.” 

She also is “proposing a new food and medical tax credit which can be claimed by individuals and families earning less than $40,000 a year.”  And finally, she proposes eliminating the reduction of welfare benefits for parents who go to work to help support their families.

Lingle views these proposals as not only lowering the cost of living, but as a way to prevent further homelessness.

The governor also proposed a multi-pronged Affordable Homes Act of 2005 which includes tax credit to builders, streamlines government review processes blamed for slowing development and increasing costs of construction, and sets a goal of adding 17,000 affordable units over the next six years.

Education continues to be a Lingle priority including early childhood education, supporting charter schools, and increasing funding and autonomy for the University of Hawaii.  She proposed $20 million in new scholarship funds, $25 million for ongoing operations and an additional $80 million earmarked for capital improvements. In an effort to foster research, she proposed tax credits that promote partnerships with the business community.

Addressing the issue of Workers’ Compensation, Lingle stated that in a recent national survey Hawaii’s system was one of eight to receive a failing grade.  She proposes to lower the unemployment insurance tax wage base thus providing “more money for Hawaii’s businesses to increase employee wages, expand benefits, and create additional jobs in the private sector.”

Transportation and traffic received a share of the limelight and various projects were mentioned including an integrated statewide transportation system.

Lastly, Governor Lingle reminded listeners of the sacrifices made by the military and their families.  “Let’s honor their sacrifice by giving this session our maximum effort, and by always putting the needs of our residents ahead of any special interest.””