We must all keep our promise to the taxpayers with regards to the priorities set forth in our campaigns such as auto insurance reform, high three, and same sex marriages. I know that we are honor bound to try and pass these measures at the beginning of the session.

However, what has to be the most pressing crisis on our agenda, Mr. President, is the economy! the administration says it wants to "jump start" the economy with the infusion of 1 billion dollars of borrowed "state" money-as if "state" money was minted in the capitol. But the debt from that borrowed money impose a great burden on the future of our children and grandchildren.

Yes, we need to build some new schools, parks, and spend money on repair and maintenance. But Mr. President, what happens to construction and our economy when those jobs run out? What will happen to all of the projects that you and I the Legislature has already approved and those funds have not been released by the Governor- those projects that are planned and half designed or which are ready for construction which will provide jobs now? What will happen to those projects? Will the administration's new, over-zealous plans interfere with the present and future bond ratings? What will be the debt service cost to our state's future for such an enormous loan? Quite simply I ask, Mr. President, what will the repercussions to our future economic viability be should the administration's plan get implemented and fails?

But enough of the negative, lets look at the positive side. Mr. President, this just may be the most historic legislative session of our time. I say this because it is not the time to blame each other for the problems that we are facing or to fight on partisan goals. Mr. President, we are all facing a war of economic survival. And this war is going to require that all of us put our differences aside, public and private, big business and small business, labor and management, and yes, counties and state government.

We will. Mr. President, be putting in bills that I hope will stimulate our economy by utilizing presently owned state lands. Therefore, we neither have to condemn nor appropriate money to purchase new lands for our new projects.

For example:

(1) Where the state has been leasing lands on long term leasing and there is still, say, 20 years left on that lease, the state should entertain an offer for purchase of that land so that the owner would be able to construct new buildings or expand their businesses in other ways that they feel has to be done and banks would be able to work better loans.

(2) Where there are new leases to be made on state lands, the state could offer long-term leases with zero rent for 5 years and this would provide a company the opportunity to develop said lands say for (Windward Kailua, Waimanalo) an industrial park. This action would result in more construction and providing jobs for that company. The state would benefit from gross income tax not only from that business but also from the employees, plus property tax etc. for the counties.

{3) Also consider a hiatus seven-year, property rent and general excise tax exemption for new business:

A) The first step needed is to clearly define new business.

B) The state would allow for the first year 0% exemption, second year 15%, third year 30%, fourth year 45% etc.

(4) Maybe we could even consider infrastructure grants. This would be another way to help business but the loan program, if there is not one already in place, would have to be worked out with DBEDT, banks etc.

We must, Mr. President, also change our thinking on rules and regulations that have the force of law. While attempts were made last year to rid us of this burden it was said by the administration that there is no need for any reform in this area because it is easy enough for the tax payers and businesses to repeal any of the state's rules and regulations, that's needed. Mr. President, this is just not true. If our books on rules and regs were laid side by side, they would probably reach from here to China! Whenever you, I, or our colleagues want to pass a piece of legislation that we believe is good for the community or a business, we discover a rule or a regulation in the way. These rules are not of our making, yet we are the ones that are elected by the people to make laws, not the bureaucrats who stand in our way. I am not saying that we do not need rules and regulations, Mr. President, but I am saying they should not have the force of the law!

There are many other things that have to be addressed during this legislative session Mr. President. Workers compensation, welfare reform, tourism, crime, sports promotions and construction, and education to name a few. But what i, as the minority leader and with the support of Senator Slom, have laid out are but a few things that can and should be done to start to move this state forward.

I also believe, Mr. President, that we must be held accountable and responsible for keeping the counties afloat. We need the state and the counties to work together to move forward - not just to have the state take all of the T.A.T. tax for instance and leave the counties with less revenue than they now have. It's a constant battle between the counties and state. We say we're solvent and then counties raise fees saying it is the state's fault for failing to provide them with sufficient avenues for funding. That battle needs to stop today.

If the council of revenues feels that we should cut a percentage of the general excise tax, and we are planning on taking away another portion on the T.A.T. then that percentage of G.E.T. should go to the counties whereby they would have another base of income rather than just on property tax. But they too, Mr. President, should do more with their lands and streamline building codes that hold up construction. After all, we are all the beneficiaries with more home rule.

Mr. President I could go on and on as i'm sure most of my colleagues could do also. Our constituents, I think, want to again trust the people that they elect. They entrust us with promoting a decent job market by supporting business. They expect us to spend their money wisely. They want the best education for their children. And they want and demand that we pass bills to keep criminals behind bars who cause harm to our communities.

The people have been disappointed in us year after year! The time is now, to put their trust as our first priority.

That change can only come about if we all work together. Even though some may laugh because your minority caucus is only two. Believe me those two are ready and willing to work and will speak out loud and clear on legislation that is good. Also believe, if legislation is bad. we will speak out even louder. The people of Hawaii have made their choice and they will be watching our every move. Mr. President, Let us prove that Hawaii is a special place and we will do our living best to keep it that way.

Mr. President. my family and I wish you and all of the people of Hawaii a happy and prosperous New Year!

Mahalo!