State officials expect the island to be hit hard by welfare reform because nearly half of Molokai residents receive government assistance, including food stamps.
"Many of the people will be forced to seek employment because of changes in the federal law," Cayetano said in an interview yesterday after his trip. "It is important that Molokai not be left out as we work to restore economic momentum and create more and better jobs throughout Hawaii."
The national welfare reform law passed by Congress provides penalties to welfare recipients who do not eventually find a job.
The federal dollars are tied to a five-year lifetime limit on benefits and a requirement that able-bodied adults find work in two years.
On Molokai, where the unemployment rate was 17.3 percent in August, many residents say they're willing to work but can't find jobs.
The governor met with business people and held a town meeting yesterday attended by an estimated 200 to 300 people.
A number of residents support the state resuming its subsidy of the $330,000-a-year ferry between Molokai and Lahaina to enable them to work in west Maui.
Several Molokai High School students spoke about the high cost of travel to compete in athletic events without the Maui Princess ferry, which ended service Oct. 1.
School Athletic Director Kurtis Saiki said travel cost has increased by 100 percent.
"This week, sending the volleyball team to Hana cost us a couple of thousand dollars, whereas on the Maui Princess, it cost us a thousand dollars," Saiki said.
Cayetano said even with the state subsidy, the ferry was failing to maintain its market share of visitors.
"The state faced the dilemma of continuing the subsidy, and these guys were going to fail anyway," Cayetano said.
Cayetano said he would be willing to reconsider a subsidy if the county also helped to subsidize it and the hotels provided more jobs for Molokai residents.
The governor said Molokai is facing other problems, including a lack of water for expansion at such businesses as Coffees of Hawaii Inc.
The governor said some businesses, such as Hawaiian Research Ltd.'s seed corn operation, have been hurt by a court decision forbidding it to use land through third-party leases from Hawaiian homesteaders, and "Those kinds of things pose major challenges to the community."
He said he plans to discuss with Cabinet members an economic strategy for Molokai and visit the island again.
Lawrence Aki, executive director of the 154-member Molokai Visitors Association, said his organization hasn't given up trying to reinstitute the ferry subsidy. The association spent nearly a quarter of its $254,000 budget promoting the ferry.
Aki said he was pleased with the governor's visit and his directness.