The governor asks his supporters
and election opponents to unite and
'work for the common good,' to 'set
the direction' for the next decade

Full text of the governor's address

By Helen Altonn
Star-Bulletin

In solemn inaugural ceremonies today, Gov. Benjamin J. Cayetano echoed his election campaign theme in calling for friends and foes to join in making a better Hawaii.

"We have been blessed as the generation which will take Hawaii into the next century," the governor said in prepared remarks.

"What we do over the next four years will set the direction for at least the first decade of the next century, perhaps longer."

Cayetano reiterated his election pledges to improve education and the business climate, make Hawaii a Pacific health-care center and preserve the environment.

He said he'll "leave no stone unturned in settling the state's differences with OHA (the Office of Hawaiian Affairs) over the ceded lands."

But with the 21st century approaching, he said, "Our greatest challenge is change and how we deal with it."

Hawaii's spirit of aloha must be maintained and strengthened as "the glue which holds us together," he said.

By Craig T. Kojima, Star-Bulletin
Deputy Randall Silva stands guard behind the podium
bearing the theme of Gov. Cayetano's inaugural address today.

---

Associate Chief Justice Simeon Acoba Jr. administered the oath of office to Cayetano and Lt. Gov. Mazie Hirono at noon before a crowd at the Iolani Palace Coronation Pavilion. Hirono's husband, Leighton Oshima, held the Bible while the oath was administered.

The Democratic Party's 36-year reign in state government will continue four more years with the Cayetano-Hirono administration.

"Today, we celebrate not a political party's victory, but a process which is vital to our way of life," Cayetano said. "Today, we celebrate freedom; we celebrate democracy."

He asked his supporters and election opponents to come together and "work for the common good."

He pledged "an open mind" to ideas of those who didn't support his re-election. "I welcome your wisdom. I welcome the energy and commitment you displayed which made the election such a hard-fought and close one."

Cayetano, 59, son of an immigrant waiter, became the nation's first governor of Filipino ancestry four years ago.

"It's been a long journey from growing up as a kid in Kalihi to the governorship of Hawaii," he said in a short speech today.

Four years ago at his inauguration, he emphasized "partnership" and integrity in government.

After his slim victory last month, he told fellow Democrats it was "a wake-up call" and they must get back in touch with the peoples' concerns about education and the economy.

He said today he'll continue to make education his top priority, to equip and prepare children for successful lives in the Information Age.

He said his administration has done much to expand schools, increase teachers' salaries and extend the school year, but acknowledged more is needed.

In the next four years, he said, "we will take big steps to improve our children's skills in critical thinking, their computer literacy, their proficiency in a second language and the condition of their schools."

He said the administration will try to develop ways to measure performance of schools, teachers and students and make the public education system more efficient and effective.

He pledged continued efforts to reduce high business costs, burdensome regulations and taxes, and said he'll work with small and big business toward economic recovery.

He renewed a promise, however, not to seek economic development at the expense of the environment.

Cayetano said the administration will continue to place more Hawaiian homesteaders on the land. And he said, "Before the end of my term, we will reach a settlement (with OHA) which is fair and just to all, Hawaiian and non-Hawaiian."

He reviewed state accomplishments in developing a health-care industry, establishing the nation's first statewide telemedicine system and giving the University of Hawaii autonomy.

"And we've made Hawaii one of the most advanced telecommunication states in the nation - reducing the disadvantage of our isolated location and giving our businesses the capability to touch every part of the globe."

While undergoing vast political and economic changes over the 100 years since Hawaii's first governor took the oath of office, Cayetano said, "The spirit of aloha - our host peoples' greatest gift to the world - has remained constant."

He asked that all people of Hawaii work "to assure that the spirit of aloha will be strengthened, preserved and passed on to the children of the new millennium....

"In times of frequent, rapid and sometimes unwanted changes, that will be our greatest gift to them of all."

‘Completing
the vision’

After a hard-fought re-election
campaign, Cayetano hopes his last
term as governor will leave a
legacy for future generations

By Helen Altonn
Star-Bulletin

Benjamin J. Cayetano was sworn in for a second term as Hawaii's governor today, in traditional ceremonies with special touches by the first lady.

The theme of the event, "Completing the Vision Together," was carried over from Cayetano's tough re-election campaign against Republican gubernatorial candidate Linda Lingle.

Cayetano's wife, Vicky, who oversaw the inaugural arrangements, said the governor wants to leave a legacy in his last term -- "that he's helped Hawaii's transition to being very much a part of the global community without becoming like the rest of the world, and how we plan to do that."

She said the focus is on Hawaii's many cultures, noting they were reflected in the participants and music for the formal ceremonies.

The Inaugural Gala tonight at the Sheraton-Waikiki Hotel also will celebrate Hawaii's ethnic diversity through the food and music, said the former Vicky Liu, who married the governor in May 1997.

At noon today, thousands watched as Cayetano and Lt. Gov. Mazie K. Hirono took the oath of office.

The area facing the bandstand was divided into sections. Areas were reserved for elected officials, friends of Cayetano and Hirono, their families and visiting dignitaries.

There were also special sections for ethnic groups, native Hawaiian groups, campaign supporters and workers.

Kathleen Hise, a campaign worker who helped in several previous political campaigns, was attending her first gubernatorial inauguration. She said she hopes the governor will be able to work on improving the economy and supporting education.

Fred Dagdag, a retired Maui fireman, said he came today to witness "the swearing in of our only Filipino governor." He said he hopes Cayetano will be able to improve the economy.

"We are all very proud of him," he said.

Lt. Gov. Hirono spoke first, asking for unity after a difficult campaign.

Hirono, who herself is considered a top Democratic candidate to either succeed Cayetano or run for another major office, spoke briefly before Cayetano's address.

Her speech this afternoon dealt with bringing the various island interest groups together.

"We will not overcome our difficulties by lashing out at each other," she said in prepared remarks.

"The solution is not polarizing divisiveness, but a renewed commitment to community," she said.

Vicky Cayetano said the design of the Royal Hawaiian Bandstand today reinforced the administration's vision into the next century.

Accenting the bandstand were ti-leaf garlands and red, white and blue bunting. The State Seal was displayed prominently in front of the speaker's podium.

In the background were royal blue backdrops with the slogan, "Completing the Vision Together. Pu Ka 'Ike."

Cayetano and Hirono spoke after "ruffles & flourishes" by the Royal Hawaiian Band, a 19-gun salute by the Alpha Battery of the 487th Field Artillery, Hawaii Army National Guard, and singing of "Hawaii Pono'i" by Kealii Reichel.

The band, Kamehameha Schools Concert Glee Club and Reichel performed before an honor guard escorted the inaugural party to the Coronation Pavilion.

Kamaki Kanahele and Kauila Clark gave the invocation, with the doxology by the Kamehameha Elementary School Childrens' Choral Group and the "Queen's Prayer" by Nina Kealiiwahamana.

Emcees for the morning were Bill Von Osdol, Kimo Kahoano and Donovan Gaboya of Kapolei Elementary School.

For next term, it’s Ben
vs. ‘bad-news bears’

Three E's -- economy, education,
environment -- loom as the next
four years' biggest challenges

By Craig Gima
Star-Bulletin

As Gov. Ben Cayetano begins his second term in office, both supporters and critics say he faces another tough four years of balancing the limited finances of the state against demands to improve the economy and provide better government service.

"He's going to be faced with bad-news bears here: the financial situation and, on the other side, the promises he made and the demands from the public employees for their raises," said Lowell Kalapa, executive director of the Tax Foundation of Hawaii.

The governor has promised to fund the raises that the Legislature did not provide last year for members of the United Public Workers Union and the Hawaii Government Employees Association. Cost estimates range from $70 million to $100 million.

In addition, the personal income tax cut passed last year takes effect Jan. 1. If the measure does not stimulate local spending and the economy stays flat, the tax cut could reduce income tax revenues by $769 million over the next four years.

"There's no doubt in my mind that the financial situation is going to be the No. 1 issue, and the financial situation will not improve until the economy improves," Kalapa said.

Kalapa noted that court-ordered consent decrees to improve operations at the Hawaii State Hospital and to provide for special-needs students in the public schools will force the state to spend large amounts of money.

In education, Cayetano must meet requirements of the special-needs decree in two years and must also negotiate a new contract with the Hawaii State Teachers Association.

"The governor has been supportive of public education," said HSTA President Karen Ginoza. "We're going to ask that he continue that support."

"We need to make education much more of an attractive career," she said. "We need support for training and for salary. Our teachers are teaching in conditions that are very hot, that are very crowded. We're putting a big plate before the governor."

Despite demands to reduce government regulation to help the economy, environmental groups are pushing Cayetano to do more to protect Hawaii's natural resources and to enforce laws that are already on the books.

"One of this biggest challenges will be to put the environment on an equal footing with the economy," said Donna Wong of Hawaii's Thousand Friends. "The economy is the environment. The governor should not let the economy get in the way of preservation and protection."

To keep government spending in line, Kalapa said Cayetano will have to make tough decisions on cutting programs rather than cutting state government across the board.

Kalapa said Cayetano must also mend fences with small businesses who mostly supported his opponent in the general election, Republican candidate Linda Lingle.

He described the challenges facing the governor as "herculean" but not insurmountable.

"We in the history of this state have not had this long of an economic slump," Kalapa said. "If he doesn't turn the economy around in his four-year term, it will be a decade of economic struggle."