Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• What is the increase in funding allocated to classrooms?
• What is the proportional funding for education relative to other departments?
• What is the percentage of per pupil spending?

Governor's statement on results/action taken

Together, lower and higher education represent two-thirds of the State's budget, excluding fixed costs. Combining the Department of Education budget with the proportion of State funds dedicated to lower education costs budgeted in other departments -- such as school bus transportation, school health services and fringe benefits -- brought State funds dedicated to lower education to their highest point, 34.4 percent, in the last ten years.

While funding for other state agencies was reduced by as much as 17 percent, the DOE school instruction and school support budget -- the largest single State program at $621.3 million a year -- was spared any cuts at all.

Instead, cuts of $22.1 million were made to the DOE's administration budget. But even then, the total DOE budget was cut by only three percent.

In September, 1995, Governor Cayetano released $91 million in construction funds for our public schools and libraries statewide. These projects will help deal with the shortage of classrooms, especially in some of Hawaii's fastest growing areas. In January, 1996, Governor Cayetano announced the release of an additional $10 million for building and improving our schools.

Last year, when the Department of Education faced a $1.5 million shortfall in its budget to cover electricity costs, Governor Cayetano asked the State Legislature for an emergency appropriation. Without it, our schools would have had no choice but to use program funds to cover electricity costs.

This was unacceptable to the Governor because it would directly hurt instruction in the classroom. Even in these austere times, cutting instructional funds should not be a consideration.

Federal funding has been an important resource to help reforms and initiatives in our schools. Through the efforts of a citizens' task force, Hawaii received $1.4 million for our public schools, the second year of its Goals 2000 grant from the U.S. Department of Education.

Governor Cayetano strongly supported the Schools-to-Work Opportunities (STWO) program, involving five state agencies and private-sector partners, obtained another $1.7 million from the U.S. Department of Education.

STWO is not the same as traditional high school vocational and technical education. Rather, STWO is a K-to-12 career guidance effort that integrates academic learning with work-based learning. STWO encompasses the entire continuum of guidance and learning, from awareness to exploration to work-based learning. It is accomplished through partnerships among the schools, businesses, and the larger community.

In December, 1995, Governor Cayetano signed an executive order to clear the way for a privately funded $18-million project to expand physical education facilities at McKinley High School including the former site of Kapiolani Community College. This is another outstanding example of the State working with the private sector.

For the 1996-97 school year, the Department of Education will directly receive $695.7 million or 21.7 percent of the State's general fund appropriation. Based on data compiled by the National Center for Educational Statistics in 1994-95, Hawaii ranked 33rd among 50 states in expenditures per pupil. This ranking resulted from a 2.2 percent expenditure reduction due to Hawaii's recent budget crisis, coupled with a 3.1% enrollment increase.

Through careful fiscal planning, Governor Cayetano was able to lift a $3.2-million restriction on the Department of Education for 1996-97. This results in zero restrictions to the education budget.

Education continues to be the Cayetano Administration's highest priority.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Percentage of schools implementing SCBM.
• Percentage decrease in number of central staff.
• Percentage of schools that filed letter of intent.

Governor's statement on results/action taken

Through careful fiscal planning and restructuring, the central staff of the Department of Education shrank by over 36 percent to better align and support site-based, shared decision making. The change is not just flattening the system or repositioning people from here to there. It assures that support services and resources are provided to and controlled by the schools, so valuable services do not fall through the cracks. This approach will maximize resources to better serve students and schools, while maintaining equity for all.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Process established?
• Has a plan been devised?
• What degree of implementation?

Governor's statement on results/action taken

The superintendent's deployment committee was charged with restructuring state and district offices. A restructuring concept plan was finished in August, 1995, and a tentative implementation plan developed by December, 1995. A new organizational plan was finalized in May, 1996, and took effect in July, 1996. The DOE is currently operating under the new organizational structure which is 100 percent implemented.

Under the new organizational structure, 404 positions were removed from state and district offices, representing a 36 percent reduction in staff.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Number of new schools built.
• Number of new schools proposed.
• Percentage decrease in classroom shortage.
• Number of classrooms built.

Governor's statement on results/action taken

Kamalii Elementary in Kihei, Maui, was built in cooperation with the developer, Dowling Company, through the Maui School Development Partnership. It is Hawaii's second developer-built school. The partnership resulted in a school completed in six months less time, and at a significantly lower cost. Millions of dollars were saved over the traditional building process. Kamalii is designed to accommodate multi-track, year-round scheduling. The Kihei area enjoys open enrollment, allowing parents to chose between Kihei and Kamalii elementary schools.

In September, 1995, Governor Cayetano released $91 million in construction funds for Hawaii's public schools and libraries statewide. These projects will help deal with the shortage of classrooms, especially in some of Hawaii's fastest growing communities, and give our troubled construction industry a needed economic boost. Among the projects for which planning, design or construction funds have been released are:

On Oahu:

• $14.4 million for the Ewa II Elementary School first increment, including administration/library, classroom, cafetorium and other buildings.
• $3.3 million for construction of Kahuku Elementary School's new administration/library building and renovation of present building into three new classrooms.
• $1.3 million for Mililani Intermediate School planning and design funds.
• $1 million for Mokulele Elementary School library expansion and renovation.
• $731,000 for Farrington High School vocational building renovation.
• $225,000 for Nanakuli Elementary new administration/library building.
• $203,000 for design of Kapolei Elementary School's fourth increment, including permanent administration/library building, renovation for classrooms and teachers' preparation rooms.
• $191,000 for an eight-classroom building for Waipahu High School.
• $189,000 for design of an eight-classroom building for Castle High School.
• $129,000 to design the expansion of Aikahi Elementary School's administration/library building.
• $98,000 for a four-classroom addition for Mililani High School.
• $21,000 to construct a new administration building and renovate classrooms for Laie Elementary School.

On the Big Island:

• $20 million for Kealakehe High School to construct the first increment, including administration, library, dining/kitchen, classrooms, locker/shower and other buildings, football and baseball fields and other site work.
• $4.5 million for Waikoloa Elementary School's second increment, including classroom building and cafeteria.
• $2.4 million for five new classrooms for Kealakehe Intermediate School.
• $642,000 for renovation of the existing library and construction of a new six-classroom building at Hilo High School.

On Maui:

• $9.7 million for the second increment of King Kekaulike High School, including 12 general, two science, one business-education, two home-economics, one special-education and one industrial-arts classrooms, a faculty center and computer resources center and land acquisition of 50 acres.
• $3 million for Lahaina Intermediate School's new cafetorium and renovation of temporary dining room into classrooms.
• $365,000 for design of the Baldwin High School gymnasium.
• $151,000 to design a six-classroom building for Maui Waena Intermediate School.
• $150,000 to design a cafetorium for Princess Nahienaena Intermediate School.

On Kauai:

• $23 million for the first increment of Kapaa Intermediate School, including all classroom buildings and support facilities and a new off-site waterline.

On the Neighbor Islands, over $2.2 million worth of work will be done at Laupahoehoe High and Elementary School. Funds will be spent for King Kekaulike High School. Nearly $1 million will go to acquire land for a new Kapaa Intermediate School on Kauai.

The aggressive building schedule reduced the classroom shortage by 371 in 1994 and another 395 in 1995. With student enrollment growing about 3,500 annually, the net result was an increase of 7.3 percent in classrooms for our students.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

Governor's statement on results/action taken

The Governor said during the campaign that education is his number one priority and that the share of State funds committed to the public schools should increase. As noted earlier, combining the Department of Education budget with the proportion of State funds dedicated to lower education costs budgeted in other departments -- such as school bus transportation, school health services and fringe benefits -- brought State funds dedicated to lower education to their highest point, 34.4 percent, in the last 10 years.

While funding for other state agencies was reduced by as much as 17 percent, the DOE school instruction and school support budget -- the largest single State program at $621.3 million a year -- was spared any cuts at all.

Instead, cuts of $22.1 million were made to the DOE's administration budget. But even then, the total DOE budget was cut by only three percent.

The Governor's commitment to reform is demonstrated in previous sections: Department of Education Decentralization and Department of Education Restructuring.

The Governor supported renewed efforts to form a partnership between the Board of Education and the University of Hawaii Board of Regents. In July 1996, five years after signing the 1991 partnership agreement, the BOE and BOR met to discuss "Educational Policy for the 21st Century." Members of both boards once again affirmed the goal and desire to work together to address issues and challenges facing public education today.

The two boards agreed to create the following joint DOE/UH administrative task forces to make recommendations to each board for further consideration and action:

• Task Force on Teacher Preparation
• Task Force on Student Preparation
• Task Force on Educational Technologies for the 21st Century

Recent results indicate that Hawaii students' 1996 American College Testing (ACT) composite scores continue to exceed national averages. Only five states had higher average composite scores. Furthermore, Hawaii's college-bound seniors continued to improve in the Scholastic Assessment Test.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Availability of preschools to children of all resource levels.
• Number of pre-school programs.
• Number of plans.

Governor's statement on results/action taken

It has been well documented that children's early experiences from birth through age five have a profound impact on their later lives. The quality of these experiences and the care children receive will effect their chances for success in school and their ability to become productive, self-sufficient adults.

Today, for economic reasons, access to preschools and other kinds of early childhood education and care is related more to the issues of affordability and quality than availability. Services based in preschools, in other group settings, or in individual homes are growing more accessible to families with young children who have the means to pay for these services.

However, too many children are excluded from receiving quality care and education because of the financial stress on lower-income families. For those who do not face financial barriers, quality remains a concern.

The Cayetano Administration has worked with a broad spectrum of committed persons and professionals to develop a long-term strategy known as the Good Beginnings initiative for making quality early childhood education and care (ECEC) services more accessible to Hawaii's families.

Good Beginnings, our strategic plan for early childhood education, recognizes that the vast majority of ECEC services are provided by the private sector in community-based settings and calls for a new public/private partnership better suited to tackling the work that needs to be done. Good Beginnings asserts that families, businesses, employers, communities, and government all have a major stake in the quality and availability of services and outlines ways in which all can contribute to this objective.

Implementation of Good Beginnings is already underway and basic strategies advanced in the following areas:

Greater involvement and responsibility for planning and implementing early childhood education and care services at the local level.

• Co-sponsoring the 1-2-3 Steps to a Stronger Community project. Funded by the Carnegie Corporation and co-sponsored by the Hawaii Medical Association, 1-2-3 Steps is supporting neighborhood strategies for a system of integrated early childhood services in three targeted pilot communities in Hawaii.
• Funding child-care coordinators in each county who are organizing community councils for each of the islands and building local capacity for planning, governance, and resource development.
• Providing funding for local community development efforts. Child Care and Development Block Grant quality funds are supporting the efforts of the community councils and child-care coordinators to improve local services and design long-term strategies to meet local needs.

• Supported the creation of the Good Beginnings Alliance, a private, non-profit organization, to work closely with communities and state administrators in identifying service needs and shaping corresponding policies and funding priorities
• Mobilizing communities around neighborhood-specific goals and providing technical assistance to community leaders to accomplish them through the Carnegie 1-2-3 Steps to A Stronger Community.
• Restructuring plans for state agencies will facilitate a more collaborative and integrated approach in responding to the needs of families with young children.

• Expanding opportunities for low-income families to enroll their children in preschool programs offering comprehensive education, health, and social services through contracts with appropriate providers in five communities.
• Assisted the City/County of Honolulu in retrofitting public park facilities for the co-location of Head Start preschool programs.
• Providing subsidies to families with special-needs children seeking early childhood education and care services.
• Continuing commitment to providing economically disadvantaged families with access to preschool programs and child care through Preschool Open Doors and Child Care Connection subsidies.
• Enhancing program and service quality through funding training and mentoring opportunities for service providers in preschools and in homes.
• Improving families access to early childhood education and care opportunities by funding information and referral services and consumer education workshops.
• Improving coordination of existing services for economically disadvantaged families through the newly awarded Head Start Collaboration grant.
• Ensuring that infants of teen-age parents have the best possible start in life by supporting pregnant and parenting teen programs in the schools which help them acquire parenting skills while pursuing educational and career goals.
• Began process of streamlining licensing procedures for service providers.

• An initial commitment of $150,000 for fiscal year 1996/97 has been received from the private sector to begin implementing the Good Beginnings initiative which will be used to generate financial support from a variety of funding sources.
• In recognition of Hawaii's leadership role in the development of effective early childhood programs, the Carnegie Corporation is supporting community mobilization efforts around early childhood education and care objectives in three targeted areas on Oahu and the Big Island with additional funds for statewide expansion promised if the first two year phase is successful.

Yet with the impact of welfare reform soon to come, it is clear that we must pool our efforts to make timely and significant progress in improving availability and access to early childhood education and care for Hawaii's families.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Site plan.
• Permits.
• Plan for financing.

Governor's statement on results/action taken

In exchange, the State will return the 59-acre Hawaii Raceway Park to Campbell Estate and commit to relocating 1,000 employees to the Kapolei Civic Center.

Governor Cayetano explained: "This is an innovative approach to improving educational opportunities for the people of Hawaii, encouraging economic activity in Kapolei where most future development on Oahu will take place, and easing traffic on existing highways into downtown Honolulu.

"This land exchange is only the first step towards realizing my vision for West Oahu and people who live there. By building on the slopes of Puu Kapuai, we will create a great campus that can be seen by all. This land deal demonstrates my administration's commitment to higher education and the City of Kapolei.

"It would not be possible to build a new campus on the current 500-acre site located in the flat lands for the simple reason that the State does not have the money," Governor Cayetano said. "This way, we will develop infrastructure on the lower 500 acres and sell it to private developers. The proceeds will be used to build UH-West Oahu."

Paul Cassiday, Campbell Estate trustee, said, "We consider this a win-win exchange for both the people of Hawaii and the Campbell Estate. The belief that we should plan responsibly for the future is something we share with the Governor and his Administration. The new West Oahu campus site is approximately three times the size of the Manoa campus and will be able to accommodate State needs well into the next century."

Under the agreement, the State will:

• Exchange the 59-acre Hawaii Raceway Park with Campbell Estate for 910 acres mauka of the H-1 Freeway overlooking Kapolei. Campbell Estate will use the present raceway site to expand the Kapolei Business Park. The State will support creation of a private auto racing facility at another site after the present lease expires on December 1, 1996.
• Locate offices large enough for 1,000 government jobs at the Kapolei Civic Center. The new offices, to be finished by 1998, will likely be built through a public-private partnership, with a private developer leasing the offices to the State. Groundbreaking is expected in mid-December, 1987. The Estate will give land for the building to the State. When construction starts, the Estate will deed an additional 50 acres of prime land adjacent to the 910-acre site to the State at no extra cost.
• Exchange, based on fair market value, 183 acres previously contributed for the UH-West Oahu campus, with the Estate for another 183 acres located along Farrington Highway.

• Provide land for a major North-South road and cooperate with the State in coordinating road and drainage plans for the campus site.
• Provide up to 10 acres of land for a temporary location for the UH-West Oahu campus on other Estate land.

The Housing Finance Development Corporation approved the issuance of $125 million in revenue bonds for the planning and improve residential infrastructure for 1,300 acres of State lands to be sold for development. On July 24, 1996, the City & County of Honolulu Planning Commission approved the State's recommendations for the final Ewa development plan, which would allow the development of the UH West Oahu campus on the mauka site.

The City Council will be asked to approve the Plan. Work on plans for infrastructure development is scheduled to begin in September 1996.

A team from the University of Hawaii, the Department of Land and Natural Resources and the Attorney General's Office is working with Campbell Estate to document and complete the two land exchanges.

DLNR is evaluating the appraisals for the various parcels involved in the two exchanges. The Attorney General's office is finalizing negotiations over formal exchange documents with the Estate. The Land Board authorized in concept the land exchange for the 941 and 183 acres in August, 1996. DLNR has completed a draft environmental assessment.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Percentage increase in industry and businesses not related to tourism and military.
• Has a strategy been developed?
• Has a schedule or procedure been implemented?
• Identify new companies and added tax base.

Governor's statement on results/action taken

1. Promoting a positive business environment.
2. Encouraging new investment to reinvigorate the State's economic base.
3. Reaching out through science and technology to new areas of economic growth.
4. Focusing on Asia and the Pacific.
5. Reinforcing Neighbor Island economic growth and development.
6. Investing in education and human resources.

While recognizing that tourism is Hawaii's most significant industry and therefore diversification within tourism is essential (for example, business, cultural, sports, and educational tourism), other potentially key sectors are laid out. These include science and high-technology industries and activities, Hawaii-made products including manufactured goods and diversified agriculture products, and Hawaii expertise in certain services.

Diversification within Tourism. Diversification within Hawaii's strong tourism sector would provide both stability and new avenues for long-term growth. We can diversify within tourism both in terms of our geographic markets and functionally.

Geographical Diversification of Tourism

• Efforts are underway to increase the number of direct flights from Asian countries and cities to Honolulu and, especially, the Neighbor Islands. With more non-stop flights, the ease with which travelers from other regions/countries can visit our state improves, enhancing the potential for increased visitors from these areas. Examples include the additional flights to Hawaii directly from Osaka, Japan and Vladivostok, Russia, as well as direct flights from Tokyo, Japan to Kona on the Big Island and from the U.S. mainland to Maui. Additional direct flights from Los Angeles and other U.S. mainland cities to the Neighbor Islands that have been established will enhance the tourism industry.
• Governor Cayetano announced in July, 1996, the launch of a nationwide initiative by Hawaii to mobilize leaders of government and business across the country to support federal legislation for a visa waiver program for Korean tourists to the U.S. Lieutenant Governor Mazie Hirono held a seminar in that same month urging businesses to support the State's efforts. If approved, the program would allow South Korean nationals to come into the U.S. without visas under certain conditions. It is expected to have a significantly positive effect on the number of visitor arrivals from Korea into Hawaii.
• The Governor's Advisory Council on Airline Relations met with executives from United, American, Delta, Hawaiian, and Aloha airlines to discuss the future plans of each company with respect to service to Hawaii to determine how the State can assist them. Meetings with Korean and Continental airlines are scheduled for September 1996. After these meetings, the Council will develop a series of recommendations for further action.

• Governor Cayetano established the Health Tourism Task Force, which launched several initiatives to promote Hawaii as a place for Asian visitors to receive high-quality health services. The Governor met and made presentations to representatives from the Mayo Clinic (August, 1995) and the M.D. Andersen Cancer Center (June, 1996) to encourage their presence in Hawaii.
• A directory of Medical and Health Services in Hawaii is being developed to market Hawaii's medical and medical research capabilities to the Asia market, especially Japan.
• Other health tourism initiatives include: 1. Meetings with resort operators and medical facilities on the Neighbor Islands to encourage development of fitness/wellness packages and promotion of a health-related conference. 2. A meeting in May, 1996, with PREMEDS, a"medical concierge" considering opening an office in Honolulu to service guests from the Asia-Pacific. 3. Research on potential for onsen developmen there. 4. Planning for a workshop in late 1996 with medical centers and the visitor industry on promoting health tourism.
• A directory, Hawaii: Your Learning Destination, featuring higher education institutions here, is being produced to promote the export of Hawaii's educational services.
• The $350-million Hawaii Convention Center has been designed as a world-class international meeting venue with the latest in technology available. Fiber optics and advanced cabling are linked everywhere to enable telecommunications and audio visual to be used within and transmitted outside the building. The design has also incorporated the configuration and technology of a new era learning center with the ability to use up to 450 computers in one room and the incorporation of two theater-type presentation rooms seating 330 and 500. The Convention Center will enable Hawaii to attract a broad range of business and professional meetings. As of August 1, 1996, 13 groups have booked the Convention Center, and the first conventioneers could be the American Federation of State, County, and Municipal Employees scheduled to arrive August 17, 1998.
• An analysis of future bookings vs. forecast for the Convention Center is underway. In addition, an analysis of the impact of the Convention Center on demand for additional hotel rooms in Waikiki is currently being worked on. Determination of Waikiki's economic contribution to the State is also underway.
• The Cultural Tourism Program, initiated by the Governor, announced awards of more than $457,000 to promote 26 projects across Hawaii. Projects include development of cultural festivals; theater and concert productions; designating"corridors" of visitor attractions along the south Maui coast and the Big Island's Hamakua Coast; as well as establishing historical walking tours in Kona and Waimea, Kauai. The projects have budgets totaling almost $1.8 million, with a one-to-four ratio of State to private dollars.
• Sports tourism is promoted with some funding provided for the NFL Pro Bowl, Winter League Baseball, PGA golf events, the Honolulu Marathon, Royal Hawaiian Challenge, Japan-Hawaii Golf Cup, Big Man's Camp, and Women's World Volleyball Grand Prix. The economic impact of these events vary. Projects with low impacts are estimated to generate a 1-to-1.15 return (based on State and local tax revenues). The most recent figures for Pro Bowl 1994 alone indicate almost $90 million in additional sales.
• The State co-sponsored the Sixth Pacific Islands Area Seminar entitled"Ocean Resources: Development of Marine Tourism, Fisheries and Coastal Management in the Pacific Islands Area," with the Association for Communication of Transcultural Study of Japan. Fifteen Pacific Island nations, Japan and the State of Hawaii participated.
• The State of Hawaii was one of several local sponsors of the 1995 Hawaii International Film Festival which highlighted films from China. The Hawaii International Film Festival remains one of the most notable film festivals in the world, offering free showings to the Hawaii community, and is best known for its selection of films from Asia and the Pacific. Over 50,000 people attend the festival each year, including international film-makers, distributors, and film critics. In addition, the festival organizers sponsored a Pacific Island conference which was attended by delegates from all across the Pacific.

Hawaii-made products

• The"Made-in-Hawaii" festival showcasing various Hawaii-made products of 120 companies was held on May 17Ð19, 1996, in Honolulu. The event showcased products from over 120 local companies. It was well-received by participating businesses, with 80 percent of the companies responding that they were very satisfied with the show.
• The State co-sponsored the Arts Hawaii Festival that was held on August 17Ð18, 1996, at Thomas Square and the Honolulu Academy of Arts with 123 companies and five art and music associations participating.
• The State sponsored a trade show on August 21Ð22, 1995, for QVC buyers to select 20 products that were featured on a live three-hour telecast from Hawaii on December 16, 1995. The telecast was part of the"Quest for America's Best: QVC's 50-in-50 Tour." More than 360 companies participated and approximately $1-million worth of Hawaii products were sold on the show, making Hawaii's show the most successful of all of the 50 states.
• Negotiations are currently underway for the return of QVC to Hawaii in 1997 as part of QVC's"The Quest for America's Best Tour Ô97." If successful, 50 products will be selected to be sold on 20 hours of live telecasts from Hawaii.
• The State sponsored a pavilion in Sunset Publishing Corporation's"Tastes of Sunset" trade show held in San Jose, California.
• Financial support was provided by the State for the fashion symposium"Spring/Summer 1996 Fashion and Fabric Perspective," with expertise provided by a New YorkÐbased fashion consultant; the"Ninth Annual Governor's Fashion Awards;" the"Made in Hawaii with Aloha" campaign; start-up capital for a Kauai products store; and membership brochures and posters. Support was also provided for the"Made with Aloha Festival," featuring made-in-Hawaii foods and products at the Hyatt Regency Hotel; display and sale of Hawaii-made merchandise at the World Wide Uchinanchu Festival 1995 in Okinawa, Japan; the second annual"Art Expo" at the Blaisdell Center which generated sales of artwork and provided new distribution opportunities for participating companies; and the"Recycle Art Expo" in Hilo.
• The State, through DBEDT and DLNR, supported"Woods Hawaii 1995," the third annual hand-crafted alternate wood products show at the Ala Moana Center.
• The State published the Gift and Apparel Manufacturers Directory which provides information on Hawaii manufacturers that create specialty island products; and a"Made in Hawaii" poster to encourage islanders and visitors to buy local products.

• A Resort and Infrastructure Consultants Directory, featuring 54 of Hawaii's professional firms, was released in August 1996 and is being disseminated to Asia-Pacific markets with high potential for the use of such services. The directory describes major services provided by each company and lists past projects with photo. Production costs were mostly paid by the companies featured in the directory.
• An exchange program is being developed for architects, engineers, and planners with the Asian Productivity Organization in Tokyo to promote local firms, increase goodwill, and develop overseas network opportunities.
• The Hawaii Film Office exhibited at Location Expo '95, the official trade show of the Association of Film Commissioners International in Los Angeles. Over 5,000 representatives of the Hollywood/Los Angeles production community visited the show. Hawaii's booth won the second place award in design.

• An investment promotion mission to Taiwan, Hong Kong, and Kaoshiung and Guangzhou in Southern China with 56 individuals from 23 Hawaii companies took place in May, 1996. Hawaii business people met potential investors and joint venture partners. So far, over 20 potential investors have come to Hawaii to follow up with Hawaii-based companies and at least 16 investment commitments have been made. In addition, a group of about 30 business people from Guangdong province are planning to visit Hawaii in late October or early November to explore investment opportunities.
• Window Magazine, a Hong KongÐbased magazine circulating throughout Asia, ran a cover story on investing in Hawaii following the investment promotion mission.
• In support of the Council, the Investment Clearinghouse Committee was formed in June, 1996, to develop referrals to service providers who will help with business plans, marketing plans, and other steps to make a business attractive to potential partners.
• In November, 1995, the State of Hawaii successfully petitioned the Immigration and Naturalization Service (INS) to designate Hawaii as a Regional Center with DBEDT as the Regional Center Authority to attract foreign investors to relocate here. Today, Hawaii has the most successful Regional Center in the country. During the first half of 1996, 16 investor petitions were filed with the INS, representing about $9 million in new investment and about 80 jobs. In the same period, only six other petitions were filed in the rest of the United States.
• Work is underway with the Korean Chamber of Commerce of Hawaii and the Center for Korean Studies to present a Korean Investor's Conference scheduled for November 1996.

• Six new businesses have been added to the Natural Energy Laboratory of Hawaii Authority (NELHA or"Natural Energy Lab") since January 1996. They are engaged primarily in research, but all are aimed at commercialization. The companies use the unique ocean water resources pumped ashore at Keahole Point to produce micro-algae, raise broodstock shrimp, produce giant clams, and breed ornamental reef fish. Three existing businesses have expanded, increasing revenues and employment. In addition, a marketing video was produced to promote the Natural Energy Lab to potential tenants, ocean research institutions, and consultants.
• A brochure of the Maui Research and Technology Park was completed in June, 1996, to attract mainland technology firms by mail and trade-show marketing of the Park.
• The Strategic Technology Market Assessment and Development (STMAD) program was established in DBEDT. STMAD is directed at facilitating increased U.S. technology exports from Hawaii by: 1) conducting comprehensive demand- and supply-side inventories, 2) establishing a benchmark market evaluation database, and, 3) most important, identifying specific projects in the Asia-Pacific markets for development by Hawaii and other U.S. technology suppliers. Strong emphasis is placed on targeted trade missions and visiting trade missions to facilitate closing deals between U.S. suppliers and Asia-Pacific customers. STMAD's priority is on helping existing Hawaii technology companies and also attracting U.S. mainland firms to Hawaii.

• Governor Cayetano has provided continued support to the Hawaii Community-Based Economic Development program. This strategy is especially important to help rural areas formerly dependent on sugar to other job-creating alternatives.
• Under Governor Cayetano's leadership, the State is exploring forestry as part of a rural economic development strategic plan. An interagency executive task force -- comprised of the Department of Land and Natural Resources, Department of Agriculture, Department of Labor and Industrial Relations, Department of Business, Economic Development and Tourism, and Department of Hawaiian Home Lands -- is helping to form a stakeholders' group including representatives from the counties, landowners, environmental groups, community-based organizations, forestry-industry trade associations, and organized labor.

An Cayetano Administration team participated in site reviews conducted by the United States Forestry Service, USDA, in conjunction with the "President's Plan" for the Northwest Forests. The team visited four rural communities in the Northwest U.S.

In August, 1996, a team of resource people involved with the President's Plan for the Northwest Forests visited Hawaii and attended community meetings to assist with State of Hawaii rural economic development initiatives in the forestry area.

In September, 1996, a team of technical and business resource people provided technical and business assistance to the community regarding sustainable forestry.

Strengthening Ties with Asia

Governor Cayetano has also worked to strengthen ties with Asia-Pacific governments and markets to enhance business and cultural exchange.

• The Governor received an official visit from the Philippine president in October, 1995, marking the beginning of more business, educational, and cultural exchanges.
• Also in October, 1995, the president of the Republic of Korea met with the Governor to enhance the bonds of friendship and forge stronger cultural and business ties between the people of Hawaii and Korea.
• Governor Cayetano called on Japanese business leaders to join in the economic development and diversification of Hawaii by investing in Waikiki and the long-term development of State-owned property on Honolulu's waterfront.
• In March, 1996, a seminar on Business Opportunities in the Kansai Region met, a joint project of DBEDT, the Honolulu Japanese Chamber of Commerce, and the Japan-USA Trade Expansion Center. Eighty individuals representing Hawaii companies and other organizations attended. As a result, several Hawaii companies have taken a special interest in the Kansai area and have expressed interest in participating in future trade promotion activities.
• In May, 1996, the Governor met with the Chairman of the Korea-U.S. Economic Council in Seoul to encourage more foreign investment into Hawaii. While in Seoul, he also met with the Korean Minister of Foreign Affairs; the Minister of Trade, Industry and Energy; the Chairman of Samsung Group; and the President of Asiana Airlines.
• Also in May, 1996, Governor Cayetano attended a three-day meeting of the Pacific Basin Economic Council. PBEC's multinational membership includes more than 1,100 corporate members from 19 Asia-Pacific countries. The Governor and Senator Daniel Inouye co-hosted a dinner reception for PBEC attendees.
• In August, 1996, Governor Cayetano hosted international business representatives who are members of the Asia-Pacific Economic Cooperation, Business Advisory Council. The group met in Hawaii to discuss key issues to be reported to APEC economic leaders in November, 1996, in the Philippines.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Percentage increase in research dollars to universities.
• Percentage increase in foreign students at universities.

Governor's statement on results/action taken

• Governor Cayetano attended the Western Governors Conference in November, 1995, which focused on sharing higher education across state lines with the advent of information technology.
• In July, 1996, Governor Cayetano announced Hawaii's commitment to the Western Governors "virtual university," pending funding from the Legislature. The university would promote long-distance learning with faculty from more than 9,000 schools in Arizona, Colorado, Idaho, Montana, Nebraska, New Mexico, North Dakota, Oregon, Utah, Washington, and Wyoming joining those in Hawaii. In this virtual university, teaching and instructional tools include telephones, computers, modems, televisions, e-mail and voice mail.
• DBEDT, with the University of Hawaii, is promoting UH educational programs for travelers at the Korea World Trade Fair 1996 (KOTFA 1996) in Seoul in September, 1996. A similar edu-tourism campaign is scheduled for Tokyo as part of the Hawaii Visitors and Convention Bureau's Hawaii Pavilion at the World Travel Fair in December, and Study USA in Bangkok, Thailand in April, 1997.
• Plans are underway for the first annual Hawaii-Miyagi Educational Forum in May, 1997. The link between UH and Miyagi University will facilitate export opportunities for Hawaii's education industry.
• DBEDT is co-coordinator of the National Conference of Economics Education from the U.S. mainland and other countries in Hawaii in September, 1996.
• In late 1995, the High Technology Development Corporation and the Hawaii Educational Networking Consortium -- an alliance formed by UH, the State Department of Education, and the East-West Center -- agreed to promote the common goals of HTDC and the consortium, and to the extent possible, to integrate the networks of the consortium's affiliated members. The goal is to facilitate the effective use of the Hawaii Telecommunications and Information Resource Center's communications and computing resources to promote economic development and education.
• In December, 1994, a cooperation agreement was signed between the State Department of Agriculture and the Taiwan Agricultural Research Institute for projects such as bio-control, post-harvest treatment, and GIS mapping.
• Using expertise of the University of Hawaii's College of Tropical Agriculture and Human Resources, the State Department of Agriculture, and the Hawaii Agricultural Research Corporation, DBEDT is exploring the development of a cutting-edge research center to serve as the focal point for the development, exchange, and sale of technical and scientific information and services relating to biological control, research, and development. Hawaii is already conducting research on many commodities including rice, seed corn and flour and has the ability to expand to provide research services not only to Hawaii's agricultural community, but to the entire Asia-Pacific region.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Percentage increase in telecommunication capacities.
• Percentage increase in home computer ownership.
• Has PUC deregulated telecommunications?

Governor's statement on results/action taken

• The NASA Advanced Communications Technology Satellite (ACTS) Program was inaugurated to establish a high data rate (311 mbs) space-based link between Hawaii and sites around the continental U.S. to promote industry collaboration in telemedicine, astronomy, high definition television, global climate modeling, and distance learning.
• The Hawaii Telecommunications Infrastructure Modernization and Expansion (HI-TIME) Project was instituted to develop a strategic plan and mechanism for enhancing the capabilities and competitiveness of Hawaii's telecommunications resources.
• In July, 1996, Governor Cayetano attended a telecommunications symposium to see first-hand the AT&T technologies showcased during the Olympic Games. At an open forum, the Governor was also able to meet with top level leaders in business and government.
• Act 225 was signed in 1995 and set the framework to increase competition in telecommunications. Public Utilities Commission rules to implement the law were approved in 1996. Because of these changes, Hawaii is in a good position to deal with the Federal Telecommunications Act of 1996. Many new potential carriers are entering the market both as providers and resellers. Most importantly, four companies are or have announced their intent to provide local telephone service in direct competition with the present monopoly carrier. Investments in new infrastructure are increasing rapidly and Hawaii is getting a second fiber-optic link joining the islands.
• Telecommunications applications for cellular antenna sites and fiber optic cables for several sites were approved in 1996. Locations include Koko Head, Waimanalo Ridge, Hawaii Loa College, Mauna Kapu, Kalihi Uka, Mt. Kaala, and Tantalus. Pending cellular sites include two in Kaneohe and one in Diamond Head. Two approved fiber optic cables will be placed at Saddle Road on the Big Island and Haleakala on Maui. A third fiber optic cable application is pending that includes sites statewide.
• A NASA regional data center was established by the State High Technology Development Corporation (HTDC) at the Maui Research and Technology Center with interconnections to the global Internet network and the University of Hawaii's PEACESAT network.
• The High Technology Development Corporation (HTDC) established the Hawaii Telecommunications and Information Resource Center at the Maui Research and Technology Center to serve as a hub for private industry, researchers, educational institutions, and government to interact with Hawaii's computing, telecommunications, training, and educational curriculum resources.
• A key-test quality-assurance lab for one of the world's fastest-growing high-tech firms has been established in Laupahoehoe on the Big Island. The company, which also has offices in the Mililani High Tech Park, has operations in over 100 countries and is expected to generate more than $500 million in sales this year.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• What programs have been initiated to help small businesses and reduce red tape?

Governor's statement on results/action taken

• The Business Resource Center was established by consolidating existing resources and personnel within DBEDT. The BRC provides general economic, social, and demographic information and statistical data about potential markets in the U.S. and the Asia-Pacific region, as well as information about Hawaii. The BRC is developing an Internet website so the resources of the department will be conveniently available to the local and global communities. The BRC complements the Business Action Center, the one-stop center for licenses and approvals required in conducting business in Hawaii.
• Governor Cayetano has begun an on-going initiative to review State regulations that may adversely affect the costs of doing business in Hawaii.
• Alliances have begun between State agencies and other government and private sector organizations to promote small business. For example, an informal alliance between the Natural Energy Lab and the UH-Hilo Small Business Development Center will provide on-site workshops and counseling to the Natural Energy Lab tenants and the community.
• An incubator area has been established in the Natural Energy Lab for small business start-ups. Variable lease space and on-site support assists businesses just starting out to reduce their risks. In addition, the Natural Energy Lab provides operational, administrative, fiscal, and marketing support to its 22 tenants at the ocean science and technology park.
• DBEDT's Business Advocate now works more closely with regulating agencies to ensure the proposed administrative rules do not unduly burden small businesses.
• A Response to the Legislative Recommendations from the Hawaii Congress on Small Business was completed in March, 1996. The Cayetano Administration was supportive of the report but some found recommendations to be beyond the State's immediate control.
• The State contracted with Kapiolani Community College to conduct Entrepreneurship Classes for persons interested in starting small businesses associated with long-term care. A curriculum has been developed and classes will be conducted at community colleges on all islands.
• Transportation issues continue to be a major bottleneck for small businesses. As such, several State agencies and the private sector have established an advisory committee charged with looking at ways Hawaii can improve its competitive position through its air and group transportation systems. The group was formed in response to a 1995 report entitled, Enhancing Air Carrier Yields; Air Cargo Development in the State of Hawaii.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Percentage decrease in workers' compensation premiums.
• Reduction in unresolved claims.
• Percentage decrease in worker s' compensation settlements.

Governor's statement on results/action taken

• Governor Cayetano, with the help of the Legislature, has reduced workers' compensation premiums by 27 percent, a $100-million savings for Hawaii's businesses.
• Governor Cayetano strongly backed and signed into law Act 261 which creates the Hawaii Employers Mutual Insurance Company. HEMIC, a non-profit insurance company owned and operated by business members, will replace the present assigned risk pool as a means to lower costs, provide adequate benefits, establish a safe workplace, and help injured workers return to work quickly. In August, 1996, Governor Cayetano appointed HEMIC's Board of Directors.
• Governor Cayetano supported and signed into law legislation to establish a workers' compensation facilitator unit within the Department of Labor and Industrial Relations to cut red tape and reduce bureaucracy.
• Reforms to the workers' compensation system saved Hawaii employers $17 million last year and resulted in 5,000 fewer claims. The decline in workers' comp costs represents a 5 percent drop, the first since 1989 and only the second drop in the past 20 years. In addition, assigned risk pool rates in 1995 declined by 22 percent.
• Reforms also brought more companies back into the market. Four new companies and two previously licensed ones re-entered the workers' compensation insurance market.
• Workers compensation spending for injured and ill State employees fell $4.1 million from FY95 to FY96, allowing the Department of Human Resource Development to return $4.8 million to the general fund. The savings were the result of DHRD's aggressive return-to-work program, cost containment, increased departmental accountability for temporary disability payments and reductions in the medical schedule fee.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Percentage increase of new industries not related to tourism or the military.
• What prospects have been identified?
• Percentage increase in new-service and non-service jobs created.
• Status of "Operation Bootstrap" and other programs to promote new industry.

Governor's statement on results/action taken

• The Cayetano Administration successfully supported State legislation to expand the types of firms eligible for enterprise zone incentives. These enterprises now include telecommunications, information technology, medical research and telemedicine, business and environmental training, and all agriculture producers in Kauai County. Low-income hiring requirements were eliminated and overall hiring requirements increased.
• Governor Cayetano approved the first Kauai Economic Zone in June 1996, and the fifth Big Island Economic Zone in August, 1996. Applications have been received from the City and County of Honolulu and Maui.
• Efforts to identify all potentially eligible businesses in each zone and hold orientation workshops continue. Plans to attract"new" businesses to each zone are being developed in conjunction with the counties and private sector trade and business associations.

Open-house tours and workshops were held by the Foreign Trade Zone No. 9 in June. 1996 to provide businesses a first-hand look at how they may benefit from the zone, including reducing or waiving of customs duties, special storage and rental rates, and reduced uncertainties involving importing.

Energy Industries

Governor Cayetano released the first $2 million of a $4 million appropriation for a biomass gasification facility being tested on Maui. Biomass gasification produces electricity at half the cost of direct combustion techniques and could lead to the sale of technology in developing Asian countries. The State's funds will be matched with an additional investment of $9 million from federal and private partners.

Manufacturing

• The Hawaii Strategic Development Corporation made a $500,000 equity investment, matched by private sector funding, in a new company that manufactures medical devices. Located in the Hilo Foreign Trade Zone, the company will eventually employ 150 workers to assemble medical waste disposal devices utilizing new technology for export to the U.S. mainland and foreign markets.
• An evaluation of the value of FTZ procedures for a wood manufacturing plant on the Island of Hawaii was completed in February, 1996, and sent to interested parties.

• The Natural Energy Laboratory of Hawaii Authority (NELHA) has a new marketing plan to bring new tenants to the facility. Business that can use cold deep sea water, warm surface sea water, or high-solar insulation available on site are being targeted.
• The State received a $300,000 commitment to an aquaculture project at the Natural Energy Lab from a firm managing foreign government funds. The Hawaii Strategic Development Corporation is also an investor.
• Design of two 55-inch diameter pipelines at the Natural Energy Lab that extend to the shoreline to deliver sea water for tenant expansion in the HOST Park was completed in February, 1996. In April, 1996, the Natural Energy Lab created the world's first closed-cycle OTEC plant using roll-bonded aluminum heat exchangers, a technology to improve efficiency of ocean thermal energy conversion.
• The relocation of the West Hawaii Sea Grant Extension Service (SGES) to the Natural Energy Lab was completed in July, 1996. Collaborative efforts between SGES and the Natural Energy Lab will assist NELHA's efforts to publicize itself as an ideal location for ocean research, development, and commercial activities. It also contributes to the education and training of people in West Hawaii.
• To get the word out further about NELHA, an Internet home page to provide general information as well as specific detail about how to start a project there was put on-line in December, 1995. In addition, educational and science tours of NELHA were conducted in FY95/96 for approximately 6,000 adults and children.
• The Hawaii and Pacific Island Seafood Marketing Alliance was initiated. Formal agreements with as many as eleven countries are being developed. The Alliance will be featured at exhibits such as the Sea Fare International 1996 and a future seminar.
• A five-year update of the Hawaii ocean industry portfolio model was completed. The model describes the status of annual revenues, annual revenue growth and employment for ocean R&D, seafood marketing, ocean recreation, maritime, commercial fishing, and aquaculture.
• A cooperative agreement was reached between the State of Hawaii and the China Ocean Minerals Research and Development Association for joint projects for the development of ocean manganese crust deposits.
• Following the State's participation in the Oceanology 1996 workshop, a United Kingdom visiting trade mission to Hawaii is being organized to showcase Hawaii's ocean R&D businesses.

• The State of Hawaii sponsored the Japan-U.S. Science, Technology, and Space Applications Program (JUSSTSAP) to establish bilateral ventures in telecommunications, remote sensing, disaster management, microgravity research, and other industries that can directly benefit Hawaii.
• Eleven technology companies located in the Maui Research and Technology Center, managed by the High Technology Development Corporation, generated an estimated $1.65 million in gross revenues and employed 31 persons in 1995. Two of the 11 companies relocated from the U.S. mainland in that year.
• This year, the Pacific Disaster Center became a tenant at the MRTC. PDC is a joint federal-state government project to develop a facility to manage both military and civilian disasters. PDC will provide centralized information on natural and human-made disasters.
• In 1995, the Manoa Innovation Center (MIC) had 25 occupants with revenues of more than $4.2 million and 14 full- and part-time workers. A new wing of office space can accommodate up to 12 new technology companies.
• In central Oahu, the High Technology Development Corporation, with Castle & Cooke Properties, created a technology incubation program at the Mililani Technology Park.
• The State is seeking to improve the process for importing microorganisms for research or marketing of microbial products. Statutory changes have been completed and revisions to administrative rules are in progress to allow researchers to import microorganisms on a case-by-case basis.

• Governor Cayetano signed the Uniform Limited Liability Company law (Act 92) passed by the 1996 Legislature. It allows the formation of a limited liability corporation which permits corporate indemnification but payment of individual taxes. A similar law (Act 93) allows for limited liability partnerships, which protects individuals in these partnerships with corporate indemnity as well.
• A series of discussion papers was launched in June, 1996, to provide objective analyses of issues and challenges facing the Hawaii economy. Initial reports dealt with regulation of the motor carrier industry (June, 1996) and unemployment insurance system (August, 1996).
• Governor Cayetano signed Act 155 to authorize Hawaii-chartered state banks to establish interstate branches effective June 1, 1997.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Percentage increase of private sector funding to HVB.
• Percentage increase in discretionary expenditures by HVB.
• Percentage increase in visitor days.

Governor's statement on results/action taken

• Visitor arrivals have increased from January through June, 1996, by 6.3 percent over the same period a year earlier. Hotel occupancy rates have risen to 77.1 percent, almost one percentage point higher than in the previous year.
• Assessment of the options regarding the long-term financing of general tourism promotion and other related issues are underway along with an examination of the State-HVCB relationship to ensure the most efficient and effective use of public funds.
• In April, 1996, the Governor Cayetano met with U.S. Transportation Secretary Frederico Pe–a to argue for approval of Japan Air Lines' direct flights from Tokyo to Kona and seven-day-a-week flights between Sendai and Honolulu. In that same month, he urged the U.S. Senate Committee to given JAL interim authority while the U.S. and Japan work out a broader air service agreement.
• Crime and safety continue to be important issues affecting tourism. The Department of Public Safety and the Attorney General's Office have been working with Waikiki Improvement Now (WIN) and the Honolulu Police Department to promote public awareness of crime and safety issues in Waikiki and the need to obtain funding for increased correctional facilities and prevention/deterrence programs.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Percentage increase in new agricultural products and technologies.
• Strategy of diversification.
• What programs have been established?
• Number of new crops or percent of crop expansion

Governor's statement on results/action taken.

• To market Hawaii as the agricultural center of the Pacific for production, marketing, and technology transfer.
• To establish Hawaii as the"Holland of the Pacific" for potted plants and cut flowers.
• To establish a new production atmosphere for agriculture in Hawaii to be competitive in the world market in the 21st century.
• To establish agriculture, farming, and related business activities as a growth opportunity for entrepreneurs in Hawaii.
• To include agriculture as a solution to diversifying Hawaii's economic base.

• The Cayetano Administration awarded a lease to Hawaii Beef Packers Inc. to operate the Hamakua slaughterhouse and livestock processing facility in November, 1995. This will help to reduce transportation costs for Big Island ranchers.
• Start-up of a Micro Loan Program was announced in November, 1995, to provide agricultural loans of up to $10,000 for displaced sugar workers and others in agricultural enterprises.
• Rule changes to support growth of Hawaii's aquatic-life resources and allow saltwater seafood and other ocean species to be sold commercially were approved in July 1996.
• To provide water development for diversified agriculture, the State of Hawaii is repairing Hamakua ditch and installing water lines from the ditch to five Hilo-Hamakua growing areas. With aggressive use of available lands and irrigation, half of the $60 million of fresh vegetables currently imported each year could be replaced by Hawaii-grown produce.
• The State assisted in the development of agricultural cooperatives in Waialua (Waialua Farmer's Coop) and Hamakua (Hamakua/North Hilo Agricultural Coop) through the State Community-Based Economic Development program.
• The Cayetano Administration worked to ease Japan's plant quarantine restrictions which largely discouraged the export of rooted potted plants to Japan from Hawaii. With approval of a certification program in December, 1995, Hawaii became the first state to enter Japan's market for interior foliage plants. This provides Hawaii growers an opportunity to double the size of the existing interior potted foliage industry from $12 to $24 million by the year 2000. Three shipments have been made -- dracaena and bamboo in December, 1995, and two shipments of miniature plants on lava rocks in February and, June 1996, with a fourth of rooted palm plants is scheduled for September 1996.
• With this certification program, the State and the Western United States Agricultural Trade Association organized a trade mission to develop of a new market for tropical foliage plants in Japan. A study on supplying the Japan market completed in April 1995. Following this, a Hawaii delegation including representatives of the Hawaii Department of Agriculture and Hawaii's foliage industry participated in a trade mission to Japan. A visiting trade mission to Hawaii was received in October, 1995, from Japan's foliage industry. The next step is to expand the export foliage including cut flowers and small potted flowers.
• To reclaim Hawaii's market share of the papaya market, the State Department of Agriculture is working with the industry to increase production by 5 to 10 million pounds by the year 2000, and 15 to 20 million pounds by the year 2010. Also to revitalize the battle against the Papaya Ringspot Virus (PRV), the State is working with industry growers to plan removal of infested trees and the start-up of plantings in disease-free areas. Work is underway in the development of genetically engineered genes for resistance to the PRV.
• The State has continued to address the problem of the banana bunchy top virus by supporting an eradication program for the destruction of all diseased banana plants in Kailua-Kona and Holualoa on the Big Island. House-to-house surveys continue, and research is underway to develop a genetically engineered resistant variety of bananas.
• Irradiation could help Hawaii to experience millions of dollars in the export of these exotic tropical fruits and potentially additional produce in the future. Under a trial project, test shipments of papaya, banana, mango, lychee, rambutan, atemoya, carambola, and avocado have been successfully treated by irradiation and marketed in the U.S. Midwest. The first shipment was made in April, 1995. As of August, 1996, eight test shipments had been made, resulting in a proposed rule change to allow papaya, lychee, and star fruit to be treated in Hawaii as well as on the U.S. mainland with irradiation for quarantine de-infestation.
• To support the agriculture industry, the State spent $4.3 million in FY 95 and $1.7 million in FY 96 on agricultural research. Projects include: Low Input Sustainable Agriculture; Firetree Research and Control; Melastome Plant Pests; Anthurium Blight Resistant Cultivars; Pineapple Pest Problems; Biomass-Eucalyptus Plantation for Energy Production; Exotic Tropical Fruits; Animal Waste Management; Livestock Education/Nutrient Management; Yellow Sugarcane Aphid Control; Cut Flowers Nematode Control; Dendrobium Varietal Development; Protea Varietal Study; Benalate Research; Nitrate Research; Pesticide Education Program; Pesticide Testing and Registration; Fruit Fly Post-Harvest and Treatment; Clean Ginger Seed; Biological Control of Phytophthora Blight of Pepper; and Post-Harvest Treatments for Floricultural Crops in Taiwan and Hawaii.
• The State Department of Agriculture is also looking at expanding its ornamental fish industry which is fast-growing and highly lucrative. A committee of ornamental fish breeders and selected agencies was formed to look into the opportunities. In addition, the State is assisting to facilitate the safe introduction and breeding of exotic ornamental fishes.
• The State will be operating its first agricultural park on the island of Kauai. A $2.6 million economic development administration grant was awarded by the U.S. Department of Commerce to help Kauai County recover from the destruction caused by Hurricane Iniki. The agricultural park contains 19 agricultural lots totaling 164 acres. Uses include a nursery, vegetable crops, and possibly aquaculture operations.
• In May 1996, the Board of Land and Natural Resources authorized the cancellation and transfer of a lease from the county to the State to operate the Molokai Agricultural Park. The park, currently made up of 19 lots, is 40 percent developed with a majority of production in vegetable crops and seed corn. The State continues to aggressively pursue further development of the park.

Campaign statement/promise

POP '94

Indicators of whether promise kept

• Has a group or task force been specifically identified?
• Has its role and mission been defined?
• What is the specific reporting time table?
• Number of services identified for privatization.
• Number of functions privatized.
• What recommendations have been proffered?
• What processes have been accepted for implementation?
• What are the time tables for completion?

Governor's statement on results/action taken

Governor Cayetano moved 300 inmates to Texas in late December, 1995, to alleviate severely overcrowded conditions in Hawaii's prisons.

"The three-year arrangement with the correctional facilities in Texas is beneficial both to the State and Hawaii's inmate population," the Governor said. "The State will save money while it proceeds to complete construction of 346 new bed spaces in existing correctional facilities.

"Hawaii inmates will remain in Texas under a three-year contract costing $4.5 to 5 million per year, or about $15,330 per inmate annually compared to $30,000 to house an inmate in Hawaii.

In August, 1995, Governor Cayetano announced that the printing of the Hawaii Residential Landlord/Tenant Code Handbook will be turned over to the private sector, as part of the administration's overall effort to streamline government operations.

"This effort will save the State at least $20,000 in printing costs alone. Additional money will be saved because the state will not have to commit time and resources to the production, storage and distribution of the handbooks," the Governor said.

The Tax Department has privatized collection of delinquent taxes in more than 9,000 cases in which people owe up to $5,000 in back income taxes totaling approximately $5.2 million in outstanding income tax liabilities. Use of outside collection services will allow Tax Department personnel to concentrate on larger and more difficult accounts.

The community of Hana on Maui is turning Hana Medical Center into a non-profit health care organization to promote community based health care services.

The Department of Land and Natural Resources has entered into curator agreements with two private organizations to assist the Division of State Parks at ÔIao Valley State Park and Hale Kii Pihana Heiau, Maui. The non-profit organizations, Kumu ÔAo and Na Kanaka Maoli O Hawai'i Nei, will help with ground maintenance including removal of alien plants, replanting native flora, and promoting visitor awareness about the unique natural resource features of the parks.

A recently executed lease with Friends of Iolani Palace is designed to progressively wean the organization from State operating-fund support over a three-year period. In addition, a public/private partnership resulted in the landscaping of the entry driveway at Iolani Palace State Monument.

The Department of Land and Natural Resources utilizes contractors in a variety of maintenance services including refuse removal, janitorial services, waste oil removal and wastewater treatment plant servicing. The Legislature approved private development of State marina facilities at Kawaihae, Hawaii, and Manele, Lanai.

DLNR entered into a 20-year privatization contract with the Peregrine Fund, a world-class non-profit organization, to operate the State's Olinda Forest Bird Facility. The newly named Maui Bird Conservation Center had the most successful breeding year at the Olinda facility.

The Department of Health has developed procedures to give contractors, at their own cost, the option of retaining qualified consultants to review clean water permit requirements from a list prepared by the department. "This new process will allow private consultants to complete the review process for contractors," Governor Cayetano explained, "freeing up Health Department staff to deal with other applications. The Health Department will still have the final say on whether a clean water permit is issued."

The Poison Control Center and ASK2000 have been shifted to the private sector. Ongoing privatization activities in health care include the development of the Rural Oahu Family Planning Center in partnership with the Waianae Coast Comprehensive Health Center; moving clients from the Waimano Home into community residential facilities; and expansion of the Women, Infants, and Children (WIC) program using private providers such as Kapiolani Medical Center and Queens Medical Center.

In June, 1996, Governor Cayetano endorsed the creation of the Good Beginnings Alliance to assume the private sector leadership role in sharing responsibility for the development of the early childhood education and care system. The Governor said, "Families, businesses, employers, communities and government all have a major stake in the quality and availability of services and the Good Beginnings initiative outlines ways in which government can a facilitate in reaching common objectives."

Campaign statement/promise

State of the State Address

Indicators of whether promise kept

• What criteria have been established to determine agency efficiency?
• What review process was used to determine if current measures of effectiveness remain valid for agencies?
• Which agencies were eliminated and by whom? (Governor or Legislature)
• What criteria was used to determine increases in efficiency?
• What sources summarize changes made in agency efficiency?

Governor's statement on results/action taken

Promoting Efficiency. Several initiatives to promote government efficiency are underway: restructuring teams have been established; employee performance system is being revamped; and stronger employee suggestion programs have been initiated. These are part of a larger effort to rethink the philosophy of government services, and reduce the economic impact of government on citizens' lives.

Restructuring Teams Established. Restructuring teams are expected to make recommendations to the next Legislature to streamline current operations, improve processes and reorganize departments. Priority is on two areas: 1) Those departments whose "customers" are businesses (Department of Business, Economic Development and Tourism; Department of Commerce and Consumer Affairs; Department of Labor and Industrial Relations; and Department of Agriculture); 2) Administrative departments with an impact on state government's delivery of services (Department of Budget & Finance, Department of Accounting and General Services, and Department of Human Resources Development).

The business restructuring team is reaching out to the community through group meetings, interviews and a Task Force formed by Governor Cayetano to review State regulations that increase the costs of doing business in Hawaii.

Employee Performance System. The Cayetano Administration determined that the employee performance appraisal system was not effective for measuring efficiency and productivity. As a result, a new process was created and put in place in March, 1996. The new system ensures that in adapting to internal structural changes, each State employee is made aware of what performance is expected in his or her job, what resources are available, and how best to carry out their department's mission.

Employee Suggestion Program. In September, 1996, Governor Cayetano announced the formation of A Commitment to Excellence (ACE) Innovations Program and his selections to the ACE Committee.

"The ACE Innovations Program is this administration's 'efficiency suggestion box'," said Governor Cayetano. "Its objective is to encourage State employee input as we work to become more efficient and cost effective. State employees are one of the best resources for efficiency saving ideas. They understand the system and perform the daily paperwork." Employees with cost-savings ideas now receive a monetary reward. The ACE Committee members are business executives from the private sector, volunteering their expertise to shape a more cost-effective government.

"Innovative solutions to help State government do more with less and cut red tape are the Committee's focus," said the Governor. To date, over 200 suggestions have been submitted, several have been awarded and implemented resulting in the State efficiency improvements. For example, the first submitted saved the State approximately $100,000 annually.

Community-based Governance. In the next decade, governance will continue to shift from a strong centralized State government to our communities playing a more prominent role. The Cayetano Administration is creating the environment for this change. In the last legislative session, three proposals were made to related to create strong private-public partnerships.

1. In early childhood education, the Administration proposed the concept and creation of a defined State relationship with community councils and a private, non-profit statewide planning and resource development entity known as the Good Beginnings Alliance.
2. In health, the State's community hospitals are taking a new form of management as a public benefit corporation.
3. In economic development, the Administration continues to support and encourage community-based economic development.

• Streamlining the licensing of early childhood education and care programs
• Maximizing federal matching dollars for early intervention for health-care services.
• Decreasing the time for maintaining selected types of records.
• Eliminating needless filing requirements.
• Eliminating cashier window at the Department of Budget and Finance when the function is performed at any bank.
• Reducing specific performance and processing requirements mandated by statute.
• Allowing alternative methods to achieve objectives, such as using in-house appraisals rather than obtaining certified appraisals.
• Using electronic fund transfers and credit/debit cards as an acceptable collection method.
• Using electronic benefit transfer cards as a preferred service delivery method for general assistance, food stamps, and unemployment benefits.
• Using electronic or optical filing of tax returns, which may lead to more electronic filing.

• Clearing a $400 Million Logjam. In September, 1995, Governor Cayetano announced that his administration had cleared a bureaucratic logjam that will pump at least $400 million worth of new construction into Hawaii's economy. It developed in the State Department of Health which is required to issue clean water permits to ensure that contractors take steps to prevent water pollution resulting from construction. Some major construction projects that received permit approvals as a result of the Governor's action include: Ford Island Causeway, $70 million; Kahekili Widening Project, $36 million; Nansay Peninsula Wall (Hawaii Kai, Oahu), $13 million; Aiea Stream Bridge (at Moanalua Road), $3.6 million; Kahaluu Flood Lagoon, $3.5 million; Maalaea Triangle Development Project (Maui), $2 million; Pearl City Industrial Park, $350,000.
• Streamlining the Permitting Process at the Department of Health. The Health Department also streamlined permitting to prevent another logjam. "The Health Department has developed procedures that will give contractors, at their own cost, the option of retaining qualified consultants from a list prepared by the department," said the Governor. "This new process will allow private consultants to complete the review process, freeing Health Department staff to deal with other applications." Governor Cayetano noted the Health Department still has the final say on whether a clean water permit is issued.
• Streamlining Contractor Inspections. The Department of Labor and Industrial Relations now offers specialized streamlined inspections for contractors who have implemented a certified safety and health program. Safe job sites deserve streamlined safety inspections. The compliance inspector looks only at the leading causes of worker fatalities, such as falls, electrical problems or trenches, reducing inspection time by 25 percent. "Focused inspections are a win-win for both workers and employers," said the Governor. "We become partners with contractors when they join the Department of Labor and Industrial Relations safety and health professional certification program."
• Paying Vendors on a Timely Basis. The Cayetano Administration has cut interest for late payments on bills to less than $165,000 as compared to over $430,000 last year. The departments were asked to impose stricter time lines to avoid late-payment interest costs. This was done by identifying bureaucratic bottlenecks, prioritizing paperwork and expediting payments through the Department of Accounting and General Services.
• Reorganizing the State Community Health System. In August, 1996, appointments were made to the eleven-member board of the Hawaii Health Systems Corporation which is responsible for making the inefficient and expensive state community health system more competitive and, eventually, profitable.
• Using Technology to Deliver Food Stamps. To improve management of the Food Stamp Program, the State is introducing electronic benefits transfer (EBT) cards. The change from the current paper coupon to a"credit card" system will simplify the work of the Department of Human Services, issuing banks, and retail outlets. The cost of administration will be eventually reduced and abuses will be easier to trace.
• Using Technology to Access State Government for Consumer Information. The Cayetano Administration launched a pilot project to publish bid notices and request for proposals (RFPs) electronically through Hawaii FYI and the Internet World Wide Web (WWW). Notices from State departments soliciting bids and proposals for goods and services will be posted for computer access locally and around the globe. The State also initiated a new consumer-dial program, accessible 24 hours a day, with pre-recorded messages on more than 70 topics such as how to buy a new or used car, the landlord/tenant code, auto towing, consumer scams.
• Using Underutilized Internal Resources. Governor Cayetano announced that the state will use inmate work crews to help clean Sand Island State Park and other priority state park lands. "This cooperative arrangement between the Departments of Land and Natural Resources and Public Safety is another example of my administration's ongoing efforts to do more with less in providing state services to the public," the Governor said. "Our state parks are visited by over 15 million residents and visitors annually for camping, hiking and picnics. Public impact is tremendous and requires constant upkeep. Inmate work crews provide a valuable community service in these fiscal times. And, the community service program is an important part of the inmate's rehabilitation and preparation to return to mainstream society."
• Rethinking the Philosophy of Government Services. The Cayetano Administration has changed the management of the General Assistance Program by adjusting the level of benefits according to the appropriated funds. This will ensure that the most vulnerable recipients will continue to receive basic assistance as long as they are eligible. The Department of Human Services obtained approval for our own welfare reform, called Pursuit of New Opportunities (PONO), designed to promote independence through gradual reduction of benefits, and to encourage work and self-sufficiency by allowing recipients to retain more of their earnings.
• Reducing the Impact of Government on Consumers. The Cayetano Administration is revising the present 120-day rabies quarantine. Under the proposal, dogs and cats meeting certain pre-shipment and post-arrival requirements may have their quarantine reduced to 30 days. The proposal must undergo public hearings before it becomes law.
• Eliminating Other Processing and Regulatory Bottlenecks to Improve Efficiency. Examples: - filing requirements for charitable organizations which duplicate federal and Better Business Bureau filings.

  - State and county publication deposits to the state archives.

  - regulation of driver training schools and instructors.

  - regulation of house-to-house solicitors.

  - regulation of vehicles and drivers for hire.

  - requirements that all child support payments to go through the Child Enforcement Agency, even if parents have worked out an alternative payment process.

Campaign statement/promise

The Cayetano Plan for Hawaii's Future

Indicators of whether promise kept

• Number of steps reduced in executing state contracts.
• Number of departments or agencies consolidated.

Governor's statement on results/action taken

Also, consider the change in the size of State government from when Governor Cayetano took office, as an indicator of government efficiency and productivity, downsizing government, program reductions, and government restructuring.

When the Cayetano Administration took office, the State employed 45,604 FTE (full time equivalency) employees. As of June, 1996, the size of State government 42,632 FTE employees -- 2,972 fewer.

August, 1995. Nine months after taking office, Governor Cayetano announced budget cuts resulting in the abolishment of 1,294 state jobs, elimination of state programs, and implementation of significant reductions in more than 65 programs and activities in the Executive Branch. The abolished positions immediately affected 606 state employees (civil service and exempt) plus another 688 vacant positions.

"Hawaii faces its worst fiscal crisis in its history," said Governor Cayetano. "The highest priority of this Administration is to get its fiscal house in order. Some of the departments have had to cut more from their general funds budget than others. Making the tough decisions have been painful and difficult. But we face a harsh reality: state government is spending beyond its means.

"The philosophy guiding this Administration is that government must help those least able to help themselves. This means that government cannot be all things to all people," said Governor Cayetano.

"Total savings after adjusting for unemployment, social security and health fund benefits, will be over $140 million. These cuts represent 11.3 percent of 11,464 state jobs in the Executive Branch, excluding the Department of Education, Office of Library Services and the University of Hawaii.

"Because UH and the DOE have lump sum budgeting, I cannot specifically authorize job cuts there," said Governor Cayetano. "Schools, libraries and the university make up nearly two-thirds of state jobs.

The Office of the Governor suffered the highest percentage of cuts in jobs (22.6 percent).

"We have taken the lead to eliminate duplication of government functions," said the Governor. "As an example, the functions of the Office of Affirmative Action will be transferred to each department's equal employment opportunity officer while the Hawaii Civil Rights Commission oversees enforcement."

The Department of Budget & Finance experienced the second highest cuts in jobs (19.8 percent) followed by the Department of Commerce and Consumer Affairs (19.1 percent). The Department of Human Services suffered the least in job cuts (6.1 percent).

Campaign statement/promise

"We will examine all boards and commissions and recommend the termination of those which are no longer needed."

"This review should especially apply to professional and occupational licensing boards, some of which should probably be sunsetted to remove the onerous burden of unnecessary regulation."

State of the State Address

Indicators of whether promise kept

• Has a review team been established?
• What are the results of the review?
• To what extent were review findings implemented?
• Number of boards and commissions reduced or eliminated.

Governor's statement on results/action taken

• Motor Vehicle Industry Licensing Board
• Pawnbrokers
• Podiatry
• Hawaii Education Council
• Hawaii Information Network Corporation
• Hawaii Information Network Corporation Advisory Council
• Clean Hawaii Center Governing Board
• Board of Human Services
• Hawaii Fisheries Coordinating Council
• School District Advisory Councils
• Educational Officers Classification & Compensation Appeals Board
• Governor's Agricultural Coordinating Committee
• Governor's Advisory Council for Children & Youth
• Aloha Health Corporation
• California-Hawaii Health Commission
• Hawaii County Public Health Facility Management Advisory Committee
• Kauai County Public Health Facility Management Advisory Committee
• Maui County Public Health Facility Management Advisory Committee
• Honolulu Public Health Facility Management Advisory Committee
• Advisory Committee on Agricultural Products
• Martin Luther King Jr. Commission

State of the State Address

Indicators of whether promise kept

• Which, if any, programs have been reduced, curtailed or eliminated?
• Has a review team been established?
• What are the results of the review?
• To what extent were review findings implemented?

Governor's statement on results/action taken

• Elimination of boards, commissions, and councils.
• Elimination of programs and services.
• Significant program reductions.

• Meat inspection and poultry inspection in the Department of Agriculture and returned this function to the federal government, saving the State $770,000 annually.
• Multi-media resource services in the Department of the Attorney General.
• Management Services in the department of budget and finance.
• Molokai Ferry subsidy.
• Visitor safety/detention center funding.
• Office of Affirmative Action.
• School vision and hearing screening, since services are available through the private sector.,
• Litter control program, since services duplicate City & County programs.
• Project Malama, since services are available in other programs.
• Business Education Partnership program.
• Coastal Areas program.
• Main Street program.
• Marine Patrol and of recreational boating enforcement
• Office of International Relations.
• Office of Space Industries.

Significant Program Reduction. About 60 programs were reduced at a savings of nearly $59 million.

Campaign statement/promise

"Government needs to be results-driven and not process-driven. Government should be willing to take risks and be receptive to change."

POP '94 Questions

Indicators of whether promise kept

• What criteria was used to determine appropriate placements and reassignment of functions?
• Results of review?
• What functions have been eliminated?

Governor's statement on results/action taken

Civil Service Reform. The Cayetano Administration is proposing to reform the antiquated classification system and compensation plans to more current methodologies, and alternatives. Among proposals:

• Granting the Director of Human Resources Development the authority to revise and modernize the classification plan.
• Exempting division chiefs from the civil service system and creating an executive exempt service.
• Shortening the 90-day reduction-in-force time period and eliminating "red-circling" of pay.
• Granting counties autonomy to maintain their own personnel administration systems and to act independently of the State on matters relating to wages, hours, and conditions of employment.

• Clarifying management rights in the scope of negotiations.
• Repealing the limited right to strike and making arbitration mandatory.
• Prohibiting implementation of negotiated cost items retroactively.

• Authorizing the Director of Human Resources Development to determine appropriate salary ranges and flexibility in hiring rates.
• Reducing the rate of accrual and amount of vacation leave credits and the accrual of sick leave credits for new employees.
• Changing the method of computing accrued vacation credit payment upon termination.
• Stipulating the base pay as the basis for computing retirement benefits and limiting continuation of health benefits for the retired employee only.
• Permitting departments to utilize savings for merit bonuses.

• Expressly prohibiting the investment of State funds in speculative securities.
• Establishing a specific fund for emergency and budget stabilization purposes.
• Establishing a specific fund to be used upon declaration of a state disaster.

• Transferring the harbor patrol function from the Department of Public Safety to the Department of Transportation.
• Transferring the direct service functions of the Office of Children & Youth to the Department of Human Services and retaining only policy development functions in the Governor's Office.
• Transferring the emergency medical services training to the University system, while retaining the service function within the department of health.
• Consolidating two divisions in the Department of Labor and Industrial Relations (employment services and apprenticeship) and one program (office of employment and training administration) into an integrated and streamlined Workforce Development Division to better coordinate employment and training programs.
• In the Department of Land and Natural Resources, consolidating the Division of Water and Land Development, Office of Conservation and Environmental Affairs, and Division of Land Management into a larger land division to better coordinate all aspects of land management, including water and land development, lease management, permit application review, and planning.

Year-Two Restructuring Initiatives. Governor Cayetano signed into law S.B. 2552 (Act 297), relating to state departments, which sets the policies to reorganize state government. The administration measure lays the groundwork for two consolidations in the next year, one for state administrative departments and another for departments with business-related functions.

The administrative departments involved include the Department of Budget & Finance, Department of Accounting and General Services, and Department of Human Resources Development (formerly the department of personnel services). The business-related departments include primarily the Department of Business, Economic Development and Tourism, Department of Commerce and Consumer Affairs, Department of Agriculture, and Department of Labor and Industrial Relations.

The purpose of these initiatives are to integrate and streamline related processes and achieve heightened effectiveness in State government operations.

Campaign statement/promise

"Similarly, we do not need a separate Office of International Relations, not because our relationships in a global economy are not important but because its mission can be pursued by the Department of Business, Economic Development and Tourism."

State of the State Address

Indicators of whether promise kept

• What criteria was used to determine appropriate placements and reassignment of functions?
• Results of review?
• What functions have been eliminated or consolidated?

"Personnel in worthwhile programs and activities that provide direct services are being moved to the departments, where they belong," the Governor said. "In this way, the Office of the Governor can concentrate on policy development and special, short-term projects that cut across departments and legitimately belong here.

"We now have only 70 people in this office, fewer than a third of when we arrived," Cayetano said. "Still, there has been no reduction in services or any failure to meet our mandates in law." In December, 1995, the Office of International Relations was eliminated. By July, 1996, so was the Office of Affirmative Action and two Oahu satellite offices.

In July, 1996, Governor Cayetano signed into law two bills to restructure the Office of the Governor and other state departments. Future restructuring will draw on the experience of downsizing the Governor's Office and other efforts of the past year.

Governor Cayetano also signed S.B. 2856 (Act 298) relating to the Office of Children and Youth, abolishing that office and transferring its programs and personnel from the Office of the Governor to the Department of Human Services. He also signed into law S.B. 3232 (Act 299), changing the function of the Office of State Planning, renaming it the Office of Planning, and transferring it from the Office of the Governor to the Department of Business, Economic Development and Tourism.

On June 17, 1996, Cayetano signed H.B. 1148 (Act 166) abolishing the Governor's Agriculture Coordinating Committee and transferring its functions from the Governor's Office to the Board of Agriculture and subsequently to the Hawaii Agribusiness Development Corporation after completion and approval of the agribusiness development plan.

In addition, the Executive Office on Aging (EOA) will be transferred to the Department of Human Services for administrative purposes by Executive Memorandum. The functions and programs at the EOA remain intact to preserve the federal funding under the Older Americans Act. The agency's charge remains to plan and develop policy for the aging population.

The Office of Information and Complaint and Office of Volunteer Services have been folded into the Executive Chambers for greater efficiency.

Some housekeeping details remain for the 1997 Legislature to complete the reorganization. Only the Office of Collective Bargaining remains attached to the Office of the Governor.

Campaign statement/promise

State of the State Address

Indicators of whether promise kept

• What criteria was used to determine appropriate placements and reassignment of functions?
• Results of review?
• What functions have been eliminated?

Governor's statement on results/action taken

Campaign statement/promise

State of the State Address

Indicators of whether promise kept

• What criteria was used to determine appropriate placements and reassignment of functions?
• Results of review?
• What functions have been eliminated?

Governor's statement on results/action taken

Office of Space Industries. The office has been eliminated.

Campaign statement/promise

Cayetano Plan

"With respect to housing, there are now four agencies involved: the Hawaii Housing Authority, Housing Finance and Development Corp., Hawaii Community Development Authority, and Department of Hawaiian Home Lands. I propose that the first three agencies be consolidated into a Department of Housing."

State of the State Address

Indicators of whether promise kept

• What criteria was used to determine appropriate placements and reassignment of functions?
• Results of review?
• What functions have been eliminated or consolidated?

Governor's statement on results/action taken

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Do counties report improved planning?
• How often do county and state officials meet?
• What qualitative changes were made to improve planning processes between state and counties?

Governor's statement on results/action taken

Major outcomes of the Council include the resolution of beach liability concerns of the counties through passage of Act 190, SLH 1996, and expeditious permit processing through agreements to transfer a number of state permit functions to the counties.

At the formation of the council, Maui Mayor Linda Lingle said, "This is an opportunity for everyone to learn from each other and I commend the Governor for this great idea. Since the Governor has no direct experience in county government, this is a chance for him to become more knowledgeable about county government. I look forward to this meeting and the exchange of ideas."

Honolulu Mayor Jeremy Harris said, "I look forward to meeting with Governor Cayetano, his staff and the other Mayors to address issues of statewide concern. We all agree that the state and the four counties need to work more closely together, so this will be a good opportunity for us to share some ideas and find some common solutions to our problems."

Kauai Mayor Maryanne Kusaka and Big Island Mayor Stephen Yamashiro believe that getting the chief executives together to improve intergovernmental relations, streamlining governmental operations, and reducing duplicative responsibilities and services is a rare occasion for cooperative public problem solving.

The Council is scheduled to meet again in December, 1996.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Percentage increase in staff to monitor programs.
• Percentage increase in enforcement of violations.

Governor's statement on results/action taken

"These officers will be our front line in safeguarding Hawaii's land and ocean for future generations," the Governor said. "I commend and thank them for making the personal choice to spend their careers protecting Hawaii's unique, fragile, and precious natural and cultural resources."

Alien Species. The Coordinating Group on Alien Pest Species (CGAPS) is a consortium of 14 state, federal, and private agencies formed in 1994 to find ways to close the gaps in pest prevention and control systems.

CGAPS has examined Hawaii's current pest prevention and control systems, identified ten of the"most unwanted" alien species, outlined a ten-point action plan, and listed steps the average person can take to help prevent and contain the problem. Their report,"The Silent Invasion of Hawaii," was released in October, 1996.

Since the discovery of a live brown tree snake inside a Scofield Barracks warehouse in December, 1994, there has been a heightened awareness of the real threat that this snake poses to the economic and environmental well-being of Hawaii.

To support a cooperative effort among several State and federal agencies, Governor Cayetano released $500,000 to attack the problem and prevent entry of this pest into the State of Hawaii. A joint trapping exercise at Hickam Air Force Base sponsored by the U.S. Department of Agriculture was held in February, 1996. The dual purpose was to provide training for an emergency response to brown tree snakes in Hawaii, and to determine whether there were snakes in the trapping area. (Fortunately no snakes were caught.)

In addition, a working committee was formed with members from the U.S. Department of Agriculture, the State Departments of Agriculture and Land and Natural Resources, and the Nature Conservancy of Hawaii.

The group will hold training workshops for people working near airports and harbors, around goods and cargo entering Hawaii from Guam, or on military bases that service ships and planes arriving from Guam. The State, meanwhile, is continuing its inspection of incoming flights and cargo from Guam. The State Department of Agriculture currently has three detector trainer/dog teams, with two more teams to join the front line shortly.

Following Governor Cayetano's"get tough on illegal animal owners" policy, Hawaii has seen more cases in which heavy penalties were levied. Among them:

• A Big Island man was sentenced to one year in jail and fined $25,000 for possessing a 30-inch ball python.
• Another Big Island man was fined $2,500, plus community service, and a suspended fine of $20,000 to take effect for any violation committed within a year for possessing a six-foot-nine-inch boa constrictor.
• The State has also stepped up its enforcement which led to a University of Hawaii professor receiving a $10,000 fine for smuggling infested plant materials containing pests that could have infected bananas.
• In addition, several individuals have been fined $1,000 each for possession of snakes in Hawaii.

The following 12 alien pest species were turned in during this period: Green Anole, Box Turtle, Jackson's Chameleon, Corn Snake, Microbial Product, Iguana, Burmese Python, Nile Monitor Lizard, Cuban Knight Anole, and Bearded Dragon.

The State Department of Agriculture has an ongoing educational and outreach problem where groups are invited to discuss the department's plan to learn about the problem that alien pest species cause to our environment. In addition, the department participates in numerous special events, fairs, career days throughout the year to heighten the public's awareness.

Governor Cayetano kicked off Operation Miconia in April, 1996. The intent of the high-profile campaign was to encourage community involvement in reporting any sighting of this very threatening weed. Miconia has already destroyed nearly 70 percent of the forest in Tahiti and has the potential to do the same in Hawaii. Mature trees can reach heights of 40 feet, with each leaf measuring about three feet in length, blocking out sunlight for underlying plants to survive. A cooperative effort between several state, county, and private groups led to the launching of this campaign.

Biting flies on Polynesian voyaging canoes sailing to Hawaii from the Marquesas were prevented from entering the state thanks to a multi-agency effort led by the State Department of Agriculture in May, 1995. Besides affecting the quality of life for residents, the midge would have been detrimental to Hawaii's tourist industry. The joint effort of private, State, Federal, and military agencies eliminated the flies at sea by removing all possible breeding sources, spraying the six canoes and seven escort vessels at sea, and fumigating the canoes in port. No trace of any biting flies was found following inspection of the canoes in Hawaii.

Nearshore Monitoring. New, scientifically rigorous coral/reef fish monitoring systems have been established along the Kona coast and at Molokini Marine Life Conservation District. Proposed changes to the North Shore Kauai Ocean Recreation Management Area rules would limit entry to the sea caves there only to non-motorized vessels or those equipped with motors that meet the new EPA marine engine emission standards. In addition, the overall plan for the Wailua River calls for environmental monitoring of the entire area and an assessment of the river's carrying capacity.

Private sector cooperation. Following Governor Cayetano's insistence on public-private partnerships, arrangements have been made with private dive tour operators to provide monitoring and qualitative assessments of the areas they visit. In addition, one tour boat will assist in quantitative surveys in Kealakekua Bay on the Big Island, combined with an established educational effort to inform tourists about coral and means of avoiding damage to coral while they are in the water. A mooring buoy program will also add additional data by involving the users of the day-use moorings in the monitoring of the surrounding marine environment. The partnership program is carried out in conjunction with the UH Marine Option Program and The Ocean Recreation Council of Hawaii (TORCH).

Education Partnership. A partnership program has been established with the Polynesian Voyaging Society to conduct a youth stream monitoring program. A prototype stream stewardship program, Malama Na Kahawai (Òto care for streams") has also been developed for use by schools and other citizen groups.

Volunteer Assistance. With the help of a newly hired volunteer coordinator, the Department of Land and Natural Resources has increased recruitment of volunteers to assist with stream/marine monitoring activities.

Parks Ambassador Program. After a visit to Kalalau, Governor Cayetano authorized funding a Park Ambassador position at Kalalau Valley on Kauai to assist with visitor education, site maintenance and hands-on monitoring of the valley. Similar"ambassadors" will soon be created at the Kona Coast State Park on the Big Island and at Kaena Point Natural Area Reserve on Oahu.

New Permit Requirements. Special Use Permits being processed for three boating operations with landing privileges along the Na Pali Coast State Park on Kauai will now require the operators to provide an annual written report assessing any changes in the condition of the cultural and natural resources along the coast which they witness, with recommendations to rectify any adverse changes.

Land Inventory. The Department of Land and Natural Resources is currently conducting a complete review of Conservation District lands. The Conservation District Review Project involves various communities statewide in improving management of such lands. Similarly, DLNR is also developing a comprehensive Shoreline Management Plan to better assess and monitor Hawaii's extensive shoreline.

Enforcement. During the last year, Governor Cayetano authorized the Attorney General's Office to add two positions, one for Superfund work and one for Coastal Zone Management.

Facilities Development. Governor Cayetano approved the release of nearly $2.5 million to help the counties build facilities to control water pollution and maintain a safe and clean environment.

"The allotment is a small investment which pays big dividends in economic activity and environmental well being," said Governor Cayetano. "The Fund provides capital to preserve Hawaii's coastal waters and protect our ground water from contamination. As a substantial economic stimulus, the favorable interest rate means the counties will not have to issue bonds or expend funds at commercial rates. Ultimately, all residents stand to benefit."

This state bond fund allotment leverages $12 million from the federal Environmental Protection Agency (EPA). Low interest loans totaling $14.5 million will be made available to the counties for the construction and expansion of wastewater treatment facilities and other pollution control projects. Loans will be provided at an interest rate two-thirds that of the current state bond issues. The moneys will be released to the State Revolving Fund for Water Pollution Control Projects and administered by the State Department of Health.

The State revolving fund is a creature of the federal Clean Water Act. To date, over $130 million in loans to counties have been given. These loans include:

• $64 million, City and County of Honolulu. Projects include the Waianae Wastewater Treatment Plant expansion.
• $34 million, Hawaii County. Projects include Alii Drive sewers and Ainakou collector sewage projects.
• $21 million, Kauai County. Projects include Lihue Wastewater Treatment Plant expansion.
• $13 million, Maui County. Projects include the Lahaina Wastewater Treatment Plant expansion.

Coastal Zone Management. Governor Cayetano continues to support the Coastal Zone Management (CZM) program. CZM provides information to developers, contractors, and the general public about the various permits and approvals, their sequencing, the agencies responsible for the permits, resource and environmental issues, and other related matters.

Ongoing work in CZM include studies of beach management and erosion, coral reefs, and runoff pollution. These efforts are intended to protect the resources while providing for their sustainable use, especially since these resources are the foundation of the State's largest industry, tourism, and is important to our island lifestyles.

• An atlas that identifies the various coastal hazards and provides a 100-year history, where data are available, was developed in 1995 by the Coastal Zone Management program. The information will be important for planners, developers, and land- and water-use policy decision makers in designing projects based on the need to protect life and property.
• As part of its public education program, the Coastal Zone Management program produced a 30-minute video describing various coastal hazards in Hawaii and recommending measures to mitigate them, especially with respect to hurricanes.
• Hawaii's coral reef initiative was developed and is being implemented by the Coastal Zone Management program. The Pacific regional and U.S. coral reef initiatives have been based on Hawaii's plan. In addition, Hawaii's initiative has become the model for international coral reef initiatives.
• Act 104, SLH 1995, incorporated the Hawaii Ocean Resources Management Plan into the Coastal Zone Management program and established an advisory committee to provide advice on ocean and coastal issues, interests, and activities from a more comprehensive perspective. This effort enhances coordination and promotes a more systemic approach to functional activities.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Has legislation been proposed for community groups to recover attorneys fees?

Governor's statement on results/action taken

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Has public intervenor been established?

Governor's statement on results/action taken

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Portion of state fuel taxes designated for environmental protection.
• User fees established for state parks, nature area reserves, hiking trails, etc.
• Tax levied against those who generate hazardous wastes, discharge pollution into our waters, sale of pesticides, etc.

Governor's statement on results/action taken

User fees increased in the last two years include the following state wildlife, forestry and parks programs:

• Na Pali Coast State Park landing fees were increased from $10 to $15 per landing in July 1995.
• Lodging fees for cabins at State Parks were increased from a minimum of $10 per night to a minimum of $45 per night in February 1996.
• Hunter license fees increased by $5 through necessitating the purchase of a Hawaii Wildlife Stamp to support wildlife and conservation programs in Hawaii.

• Resident commercial fishing licenses from $25 to $100 per year
• Non-resident commercial fishing licenses from $50 to $200 per year
• Resident freshwater recreational license from $3.75 to $10 per year
• Non-resident freshwater recreational license from $7.50 to $25 per year
• Northwestern Hawaiian Island Fishing Permit from $1 to $100 per year
• Bail license from $1 to $100 per year
• Kona crab and lobster closed season sales license from $25 to $100 per year
• Special marine product and sale license from $2.50 to $100 per year.
• Commercial permits for boating and ocean recreation activities would increase from 2% of annual gross revenues to 2-1/2%.
• Mooring and other harbor use fees would increase, on average, by 25%.
• New cabin user fee of $25 per night at Keanakolu Forest, Island of Hawaii.

Other possibilities for revenue enhancement through users fees being considered include:

• Establishing new park user fees including camping, group picnic, park entry, parking and special use permits
• Establishing new recreational marine fishing license fees, both resident and non-resident
• Parking fees at some state parks
• Establishing a demonstration eco-tourism user fee at Makapuu lighthouse on Oahu, pending comments to the environmental assessment
• Increase shoreline certification fees, land document fees, fines and dam safety fees.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Number of incentive programs to support recycling.
• Percentage change in recycled products.

Governor's statement on results/action taken

• In July, 1996, Governor Cayetano issued Executive Memorandum 96-11 which mandates all State office buildings with greater than 20,000 square feet to recycle white paper, newspaper and cardboard.
• The Legislature created a recycling coordinator position in the Office of Solid Waste Management to increase recycling and recovery of valuable material from the waste stream. This position has been filled.
• The State administers a glass container advance disposal fee. Over $2 million has been collected and most of the money has been distributed to the counties to support glass recovery and recycling efforts.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Creation of Hawaiian Homes strategic economic development plan.
• Inventory of lands completed.
• Strategy for land exchanges.

Governor's statement on results/action taken

Inventory of lands is ongoing. All lands in the current inventory area identified and their approximate size and boundaries have been documented. A land assessment study was conducted in 1992 to identify land use options for these tracts. Work is continuing on the transfer of 16,518 acres of State land into the DHHL inventory.

Strategy for land exchange is to acquire lands on Oahu for current and future needs, with emphasis on land that can be developed at less cost and with offsite infrastructure available.

Land with offsite infrastructure available include:

• Kapolei Village 6 and Laiopua Village 3. Legislation passed and appraisals are underway for purchase of these parcels as an offset to State settlement obligations.
• New Lands being transferred to DHHL as part of the 16,518 acres include Camp Andrews, Waiahole Valley, Waimanalo, Kalawahine, Punchbowl, and Moiliili.
• Acquisition of 89 acres in Maili as part of exchange for DHHL used for schools, under Public Law 101-136.

• 200 acres in East Kapolei to be developed in cooperation with the Housing Finance Development Corporation.
• 500+ acres at Barbers Point NAS, under Public Law 104-42.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Plan completed by end of first year in office.
• Projects initiated.

Governor's statement on results/action taken

The Department of Hawaiian Home Lands has initiated projects throughout the State, including developments in Anahola and Hanapepe on Kauai, Waianae, Nanakuli, and Waimanalo on Oahu, Hoolehua and Kalamaula on Molokai, Kula on Maui, and in Kawaihae, Makuu, and Puukapu on the Big Island. In addition, DHHL is also working to acquire lands for future development.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Number of people put on homestead land.
• What percentage of the backlog has been reduced?

Governor's statement on results/action taken

• The Department of Hawaiian Home Lands is continuing its efforts to develop lands for homesteading. Among the projects initiated during the past year are the following: Makuu - 177 units; Kawaihae Unit 1 - 195 units; and Hanapepe - 50 units. Plans are underway to develop 47 lots in Waimanalo, 308 lots in Kula and 124 lots in Kalamaula.
• New applicants continue to apply for a homestead award. DHHL currently has more than 28,000 applications for residential, agricultural, or pastoral homestead leases. The list grows by about 100 applications per month. DHHL will continue to use its available funds to address this demand.
• During this administration DHHL has received $30 million as the first installment of the State's obligation to settle long-standing land claims. These funds will be used for infrastructure development on Hawaiian home lands.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Number of schools with Hawaiian immersion programs.
• Percentage of increase in number of schools.

Governor's statement on results/action taken

• Availability of sufficient funds to fully implement the program.
• Availability of facilities to support current and anticipated growth.
• Availability of staff, certified teachers, administrators, support personnel, clerical, custodial, food service, health aid who are Hawaiian language proficient.
• Availability of appropriate instructional materials.
• Sufficient student, family and community interest to start and maintain the program.
• A long-range plan for the continuation of the program within the district or on the island.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Has ceded land been inventoried?

Governor's statement on results/action taken

The Department of Accounting and General Services is completing a computerized inventory of the department's land holdings. Data is still being entered to update and complete the report.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Number of agreements reached?
• Has a team or group been assigned to resolve the complex legal question?

Governor's statement on results/action taken

Statewide public hearings were held through the months of July and August, 1996. Written comments about the proposed rules have been solicited and will be accepted through September 2, 1996. Decision-making on the proposed rules is tentatively scheduled for late October, 1996.

The Department of Hawaiian Homes Lands is continuing to work to protect its water rights as provided for in the Hawaiian Homes Commission Act of 1920, to insure that sufficient reserves are set aside to meet the current and future needs of Hawaiian homesteaders.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Increased state funding for Hawaiian homesteads.
• Economic development strategy and financial base for DHHL.

Governor's statement on results/action taken

• The first annual installment of $30 million was paid.
• $2.3 million for uncompensated uses has been paid.
• $1.5 million for Hanapepe sugarcane land has been paid.
• $2.3 million for use of Nanaikapono School has been paid.
• As of December 20, 1995, DHHL received 7,273,164 acres of State land or 44 percent of the 16,518 acre total.
• Waimanalo Regional Settlement: 397 acres for state public lands quitclaim is being surveyed. The Hawaiian Homes Commission has authorized appraisal to proceed for Maili, Oahu, land which includes 22 acres of Waimanalo Elementary School. DHHL has notified the Department of Land and Natural Resources that it intends to acquire up to 170 acres of federal surplus land at Bellows AFS.
• Anahola Regional Settlement: 1,150 acres for DLNR quitclaim has been surveyed and title searches are underway. About 90 acres in Anahola and Moloaa are being appraised for land exchange involving Hanapepe State land.
• General Leases for Nominal Compensation: lands at Kekaha and Humuula under $1 general leases are being appraised for State land at Hanapepe and Lalamilo.
• Federal Claims: Act 14 authorizes the Department of Hawaiian Home Lands to continue pursuit of claims against the federal government. With the efforts of the State, the Hawaiian Home Lands Recovery Act of 1995 was enacted into law. DHHL with the U.S. Department of the Interior is implementing this law, with emphasis on acquiring federal excess fee lands at Barbers Point.

Campaign statement/promise

Citizen's panel

Indicators of whether promise kept

• Fund Family Hope or a similar project through an individual tax.
• Long-term care strategy.
• Other options proposed and implemented.
• Funding proposals suggested.

Governor's statement on results/action taken

The Hawaii Summit 2011, organized by the Executive Office on Aging, is creating scenarios to determine what actions should be taken now to prepare for this demographic change and all the effects it will have on the State.

The Family Hope Fund was not established. The Executive Office on Aging called together the Policy Advisory Group in January, 1996, to discuss concerns for Family Hope. In June 1996, Governor Cayetano addressed the Hawaii Coalition for Affordable Long Term Care and promised to introduce a proposal for a tax-based program, but not in 1997. In the meanwhile the Executive Office on Aging is continuing to look at the range of options.

The State has established a group for joint public and private planning for a single entry point to long-term care. This project will provide information about and access to long-term care so that consumers can make better decisions.

The State is also creating rules for the development of assisted living facilities as an alternative to nursing homes, and also rules to implement the Nurses' Delegation Act. Both efforts are intended to help develop options and lessen the impact of the high costs of long-term care.

In November, 1996, Governor Cayetano named 14 distinguished Hawaii residents to serve on a Blue Ribbon Panel on Living and Dying With Dignity. The panel will recommend public policies on death and dying issues for Hawaii in a report to the Governor over the next year.

"Society has a vital interest in protecting life and safeguarding the ability of health-care providers to cure and care for the ill. At the same time, it is vitally important to individuals to control every moment of their lives up to the final days," Governor Cayetano said in naming the panel. It includes health care providers, clergy, attorneys and concerned citizens.

Campaign Statement/Promise

Citizen's panel

Indicators of whether promise kept

• Tax incentives for wellness programs proposed.
• Prevention programs established.
• Projected cost benefits.

Governor's statement on results/action taken

Campaign Statement/Promise

Citizen's panel

Indicators of whether promise kept

• Well-baby and prenatal programs maintained and expanded.

Governor's statement on results/action taken

Project BEGIN (Bringing Early Growth and Development into Neighborhoods). The national Centers for Disease Control and Prevention selected Hawaii as one of 10 national implementation sites to begin developing a nine-year research study of an early childhood intervention program with a grant of $25 million.

The grant was awarded for Project BEGIN (Bringing Early Growth and Development Into Neighborhoods). Project Begin will be administered by the Zero-to-Three Hawaii Project in the state Department of Health, in collaboration with the Hawaii University Affiliated Project.

"'Hawaii stands to benefit from Project BEGIN as it examines the impact of early intervention services on long-term educational and social development," said Governor Cayetano. "The federal grant awarded to Project BEGIN speaks volumes of the need to be responsive to our young children and their families in the delivery of comprehensive health and social services."

Project BEGIN will examine whether early intervention services (during the first three years of life) influence long-term educational and social outcomes. Outcomes include student performance, employment, dependence on social services, anti-social behavior, number of arrests/incarcerations, and the family unit.

The data will be used to shape state and national polices and services for young children and their families. Research results should also contribute significantly to the ongoing debate over the influence of nature (inherent qualities) versus nurture (learned qualities), an issue recently highlighted in the best seller, The Bell Curve.

Project BEGIN aims to deliver a family-centered, community-based program of developmental services responsive to individual needs. An integral component will be simplifying access to comprehensive health and social services. Some components of the project will be contracted through community agencies.

Similar interventions, although on a smaller scale, have improved demonstrations of cognitive skills among eligible newborns, and reduced the impact of mild mental retardation in infants exposed to specific environmental risk factors.

Child Care and Development Block Grants. Through Child Care and Development Block Grant awards, the Cayetano Administration is ensuring that more infants of teen-aged parents have the best possible start in life by supporting programs in the schools which help students acquire parenting skills while pursuing educational and career goals. This preventive approach will promote healthy developmental outcomes for babies, while encouraging and enabling teens to become self-sufficient, productive adults capable of supporting and nurturing their children.

Though a partnership with Healthy Mothers/Healthy Babies, teen pregnancy prevention councils have been established on all of the Islands. Through peer education and other avenues, the councils are actively promoting abstinence and sexually responsible behavior among teens, as well as increasing awareness of the consequences of becoming teen parents.

The Carnegie 1-2-3 Steps to a Stronger Community project is providing technical assistance to three targeted areas to develop integrated early childhood services. Part of this project includes as its mission: enhanced prenatal health and planned parenthood services which are culturally competent, integrated with other informal and formal support systems, tailored to specific community needs and preferences and ultimately will increase the probability of realizing good outcomes for children and families.

Healthy Start. The Queen Emma Foundation has generously contributed $2 million toward the Healthy Start program.

Campaign statement/promise

POP '94 Interview

"I will lead expanded initiatives to protect women at risk, provide shelter and aid, and help children who live in violent homes."

The Cayetano Plan

"I support more shelters for abused women. I want to explore moving the alleged abuser out and leaving the children and spouse in an environment that they are comfortable and familiar with."

POP '94 Interview

Indicators of whether promise kept

• Percentage change in the number of cases.
• Resources increased for programs and shelters.
• Feedback on the success of the programs.
• Support firearm legislation.
• Establish new counseling programs for abusers.
• Legislation proposed.

Governor's statement on results/action taken

Faced with a 20 percent cut in its budgets for POS (provision of service) contracts, the Department of Human Services did an analysis of all its contracts. Governor Cayetano decided not to cut services across the board. Instead, programs like Child Abuse Prevention and Domestic Violence Shelters were reduced less while other services were reduced more or in some cases terminated.

Governor Cayetano designed a dollar-for-dollar match "challenge" with POS providers that challenged Domestic Violence Shelters to raise money in the community which the Department of Human Services would match equally, up to their original budget. Each shelter was able to raise additional funds in the community and the Cayetano Administration matched those dollars through internal efficiencies.

In addition, $68,000 of unspent federal funds under Title IV-B (Family Preservation and Family Support) were reallocated to the Domestic Violence Shelters rather than being returned to the federal government.

The Cayetano Administration has brought together law enforcement authorities and outside providers to develop programs to deal with domestic violence, and dispensed about $900,000 annually in Byrne grant funds to support such programs.

In April, 1996, the Governor signed Act 60, relating to firearms possession by a person subject to a restraining order.

The Department of Human Services, the Department of Health, and the State Judiciary have dedicated $2.5 million to community-based services for domestic violence and sex assault victims and $1.4 million to counseling services for abusers in 1996.

Campaign statement/promise

The Cayetano Plan

Increase resources for drug/alcohol treatment and counseling programs. Develop an anti-drug campaign similar to the successful anti-smoking campaign.

POP '94 Interview & Advertiser

"About 60 percent of people in prison today have committed drug-related offenses. My position on the drug problem is to focus on education and prevention, like smoking."

POP '94 Interview

Indicators of whether promise kept

• Increase resources for drug/alcohol treatment and counseling programs.
• Develop an anti-drug campaign.

Governor's statement on results/action taken

"Drug treatment is required because a large majority of released inmates who fail parole or commit new crimes do so because of substance abuse," said George Iranon, Director of Public Safety. Among the programs are:

Expanded inmate drug treatment. The Legislature approved and Governor Cayetano released urgently requested funds in 1996 to expand the successful drug treatment program at Waiawa Correctional Facility from a 34-inmate capacity by an additional 50 inmates.

This will be accomplished at minimal cost through the use of two 4,000 square-foot tent structures to be in place by the end of October, 1996. The Waiawa program has a proven 80 percent success rate in treating drug offenders -- a significant result. The Cayetano Administration plans to expand the program to 200 inmates. A statewide search for potential sites has been compiled and is currently under review. The expansion of this program will benefit the community by rehabilitating offenders and reducing recidivism rates.

"By increasing the capacity of our prison drug treatment program, we will be slowing down the revolving door of the criminal justice system and improve the chances that drug offenders will stay out of trouble," Governor Cayetano said.

Women's community treatment. Governor Cayetano released $295,000 to reduce overcrowding at the Women's Community Correctional Center by placing 20 inmates in a community-based residential substance abuse program.

"This will help ease overcrowding at the women's prison and prevent crime by improving the chances of inmates with drug problems to go straight when they return to freedom in our community," Governor Cayetano said.

Drug interdiction. In order to curb a problem of drug trafficking in correctional facilities, Governor Cayetano approved an aggressive drug interdiction program using dogs to detect drugs within all correctional facilities; searches of vehicles, staff, and visitors; and more shakedowns (searches) of facilities. Under the Department of Public Safety's new"zero tolerance" policy, there have been 16 employees arrested for drug offenses. Nine have been successfully prosecuted and 14 have been terminated.

Pre-employment drug testing. Entry requirements for new State corrections and law enforcement officers have been increased. Among them is a requirement that all applicants pass a drug test. For the first time, the Cayetano Administration will have instituted standards to help ensure that all new ACOs are the best trained, educated, physically fit, and psychologically suited persons for their jobs.

Drug testing for current staff. The Department of Public Safety adopted a drug testing policy for employees; however, the United Public Workers and Hawaii Government Employees Association challenged it. It has been suspended until further notice.

Narcotics enforcement. The Cayetano Administration developed a computerized pharmacy alert system encompassing all of the State's pharmacies, which will alert pharmacists to persons suspected of fraudulently obtaining controlled substances. This program has been selected by the U.S. Department of Justice as one of the most successful programs in the country.

Campaign statement/promise

The Cayetano Plan

"I do not support building of prisons."

POP 94 Citizens Panel

Indicators of whether promise kept

• Develop cost-effective alternative correction programs.
• Percent reduction in costs.
• Have new prisons been built or planned?

Governor's statement on results/action taken

Highlights of reforms and alternative programs initiated by the Cayetano Administration:

Expansion of prison system. Instead of building expensive new prisons, maximum is being made of current sites. Construction is underway for expansion by 348 prison beds at the Women's prison (64) and the facilities on Maui (80), Kauai (80), and Hawaii (124). In addition, planning is underway to expand the Kulani Correctional Facility on the Big Island by an additional 500 beds.

Accommodating prisoners out of state. Governor Cayetano agreed to move 300 inmates to Texas to reduce costs and overcrowding in Hawaii prisons. It costs $15,330 per inmates each year in Texas compared to about $30,000 per inmate in Hawaii.

Reduced operating costs. The Halawa Correctional Facility reduced its staff overtime costs by more than $1.3 million per year through a new staffing plan. The Department of Public Safety is consulting with the UPW on the expansion of this plan to the seven other facilities.

Other savings are being generated by staff reductions in the director's office and at facilities; reducing food costs by expanding pig and cattle herds at Kulani Correctional Facility to provide enough meat for both Big Island facilities; imposing a mandatory $20 fee for inmate education classes; removing all inmate amenities to parole violators; and requiring inmates to purchase over-the-counter drugs from the inmate store instead of providing them free.

Kauai program. The Kauai Community Correctional Center Warden began an innovative program in which inmates can"earn" early release by serving in a boot camp, laboring on a prison farm, and working in community service projects.

The 32 screened inmates are housed in minimum-security wooden cabins on the prison grounds donated by Kauai County, for which operating costs are half that of the other inmate population. Before their furlough, they are required to proclaim in a public ceremony that they will remain crime-free. Corrections authorities from India visited the program this year and praised it as the one of best seen in the world.

Inmate labor. Nearly 100,000 hours of inmate labor was provided to government and non-profit organizations through more than 500 community service projects, saving taxpayers an estimated $1.2 million annually.

Work industries and training. In the last two years, Hawaii Correctional Industries has reached all-time highs in annual sales ($7.4 million) and inmates employed (350). The renovation of industrial areas at Halawa will increase inmate employment by 75. Administrator Lynn McAuley was selected national manager of the year for 1996 by the Correctional Industries Association for transforming the Hawaii Correctional Industries from the nation's worst to one of the best.

Improved operations. Governor Cayetano in February, 1996, authorized the hiring of a nationally respected corrections consultant, Patrick McManus, to advise the Department of Public Safety on how to improve facility operations and staff training, and to ensure constitutional standards are met and will withstand legal challenges over health and safety conditions, avoiding potential extension of consent decree requirements to other facilities.

Alternatives to prison. The Governor released $940,000 for several initiatives proposed by the Corrections Population Management Commission as alternatives to incarceration. These include:

• Community-based furlough programs to assist male offenders make a successful transition prior to release. These programs assist in job searches and drug counseling, increasing inmates' chances of being law-abiding citizens instead of being re-incarcerated as parole violators. Cost $387,000.
• Community-based substance abuse and sex offender treatment for parolees. Cost $200,000.
• Psychological assessments of sex offenders prior to being considered for parole. Cost $180,000.
• Substance abuse treatment for first-time drug offenders awaiting trial. This is an integral part of the Drug Court program initiated this year to provide treatment for first-time non-violent drug offenders as an alternative to incarceration. Cost $144,000.
• Sex offender treatment for developmentally disabled inmates, who require special services not available from existing sex-offender programs. Cost $32,000.

Campaign Statement/Promise

"...consolidate all separate state housing functions into a Department of Housing, whose goals will be based on a singular, coherent housing strategy to produce more affordable rentals and housing for our people."

"We will avoid regulations which contain housing design, subdivision layout and housing densities that give developers no flexibility in their efforts to build affordable housing."

The Cayetano Plan

Indicators of whether promise kept

• Annual number of acres redistricted Urban by the State Land Use Commission.
• Decrease in "average" conversion time of land from Agriculture designation to Urban district designation.
• Departmental consolidation completed.
• Housing strategy formulated.

Governor's statement on results/action taken

Governor Cayetano's blueprint for affordable housing includes the following goals:

• Increase the supply of affordable rental and special needs housing particularly through joint developments with the private sector.
• Increase home ownership opportunities while assisting and facilitating, not competing with, private sector developments.
• Utilize government resources more efficiently and effectively.

• Provided over $14 million in low interest loans from the Rental Housing Trust Fund to 15 projects with a total development cost of over $91 million for the development of 826 affordable rental units.
• Provided approximately $400,000 in capacity building grants to 9 projects for the development of another 353 affordable rental units.
• Provided over $5 million in annual federal and state tax credits to 6 projects with a total development cost of approximately $60 million for the development of another 597 affordable rental units.
• In July, 1996, Governor Cayetano unveiled a one-stop financing program offering over $160 million to stimulate the development of affordable rentals by the Housing Finance and Development Corporation (HFDC).

• Consolidated state rental housing financial assistance programs into one-stop, one-time applications. Through HFDC's Rental Housing Program, developers only need to make one application for a number of financing tools. These include equity financing, pre-development and feasibility funds, construction and permanent financing, general excise tax waivers, tax credits and HFDC technical assistance.
• Streamlined the affordable housing requirements in land-use reclassification actions by assigning program and compliance requirements to the counties. This action resulted in the elimination of the state imposed 60/40 affordable housing rule.
• Established a down payment loan program for qualified first-time home buyers.

• Approved the transfer of Laiopua and Village 6 Kapolei to the Department of Hawaiian Home Lands to expedite the delivery of 550 homes to Hawaiians and to receive state credits toward Hawaiian claims.
• Started reconstruction of Kamehameha Homes consisting of 221 rental units.

• About 1,112 acres of land statewide were redistricted for urban use with approximately 2,030 affordable and market units approved for residential development since May, 1995.
• About 1,723 acres statewide has been placed under consideration for urban designation by the Land Use Commission, with over 8,000 residential units proposed for development. As of mid-August, 1996, there have been three petitions for redistricting filed with the Land Use Commission for 1996. One of these petitions involves, in part, the provision of affordable housing. The State expects to request urban redistricting of approximately 500 acres for residential development in Ewa, Oahu.
• Provided financial support for the development of approximately 1,200 affordable rental units.
• In May, 1996, Governor Cayetano released over $3 million in the Rental Housing Trust Fund for eight rental housing projects on Oahu, Maui, the Big Island and Kauai to focus on the homeless, elderly, and mentally ill with special needs.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• By what amount of time was the average permit processing time reduced?

Governor's statement on results/action taken

Governor Cayetano has also created an Executive Planning Council to coordinate planning between the state and counties. Besides land use planning and coordination issues, the Council has also focused on resolving beach liability concerns and streamlined land-use permit processing through agreements to transfer a number of State permitting functions to the counties.

In January, 1996, the Land Use Commission held public hearings on proposed amendments to Chapter 15-15, HAR to implement Act 235, SLH 1995. Later in January, the Commission adopted certain recommended changes to the proposed amendments.

Campaign statement/promise

The Cayetano Plan

Indicators of whether promise kept

• Development of infrastructure for self-help housing.
• Development of guidelines facilitating self-help guidelines.

Governor's statement on results/action taken

The Department of Hawaiian Home Lands has encouraged the use of self-help housing to assist its clients in building affordable homes. Self-help programs are currently being used in Waianae Valley and Anahola, and are planned for future projects in Waimanalo, Kawaihae, Kalamaula, and Kula.

Several self-help projects have been completed recently. These include the 40 single family homes at Waimanalo Village, another 25 single family homes at Waiehu Terrace, and 46 single family homes in Milolii.

For the Waimanalo Village self-help project, the Housing Finance and Development Corporation leased State land to 40 families, provided the development with a low-interest loan to pay for engineering and design costs, provided a general excise tax waiver, and assisted in securing the interim construction and permanent loans provided by the U.S. Department of Agriculture Rural Economic and Community Development. The families completed their homes in January, 1996.

At Waiehu Terrace, 25 improved fee simple lots were set aside for self-help housing construction under the direction of the Self-Help Housing Corporation of Hawaii. The project affords the opportunity of home ownership to families with incomes at 120 percent or below the median income of the County of Maui.

At Milolii on the Big Island, HFDC -- in partnership with the non-profit HCECC, the First Hawaiian Bank, and the State Department of Land and Natural Resources -- cooperated to provide home ownership opportunities for another 46 qualified Milolii families.

Campaign Statement/Promise

State of the State Address

Indicators of whether promise kept

• What new policies and procedures have been implemented to address the issue.
• Decrease in complaints to Ethics Commission.

Governor's statement on results/action taken

Cronyism is being addressed as the Governor raises questions and then asks the Attorney General to investigate questionable past practices, for example, the land deal at Hawaii Raceway Park. When accepting an appointment to the Cabinet, individuals must accept the Governor's ethical philosophy. The Governor, through his actions and policy directives, gives his Cabinet a clear sense of his vision to restore faith in government. The Governor has:

• Canceled non-bid contract with a Washington D.C. law firm responsible for negotiating aviation issues with the federal government which hired former Governor Waihee shortly after he left office. Governor Cayetano said the contract created the appearance of impropriety.
• Supported Act 10, 1995 which allows the Ethics Commission to censure or fine unethical conduct of public officials; to do audits in campaign headquarters and create a "Code of Fair Campaign" practices.
• Given the Attorney General the freedom and flexibility to pursue wrongdoing by government officials and represent the interests of the public.

The creed of the Cayetano administration --"loyalty to the public supersedes our loyalty to each other" -- is clearly demonstrated by the Governor's actions.

Campaign Statement/Promise

State of the State Address

Indicators of whether promise kept

• Has a Public Integrity/White Collar Crime Unit been established?

Governor's statement on results/action taken

The Cayetano Administration has taken a vigorous stand on white collar crime. The Department of Taxation's first criminal tax investigation led to prosecution by the Attorney General against seven related corporations in Hawaii. That resulted in guilty pleas, an agreement to pay back taxes owed with interest, and penalties over $950,000.

The State has obtained five convictions, two are still pending, and two more matters are pending before the grand jury. The Department of Taxation is currently investigating other violations of the tax laws.

Campaign Statement/Promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Campaign spending code violators censored, dismissed or prosecuted.

Governor's statement on results/action taken

Campaign Spending Commission Enforcement of Violators. The Governor has encouraged the Attorney General to become involved in enforcement of violations of the campaign spending laws (McCormack case), and to work with the U.S. Attorney, Prosecutors Office, IRS and the State Tax Department to investigate and prosecute violators.

Campaign Spending Commission Enhanced Reporting. The Governor has strongly supported electronic filing of campaign spending reports to facilitate the review of all candidate reports.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• Evidence of personal adherence to Campaign Spending Commission guidelines.

Governor's statement on results/action taken

In addition,. the Governor received $312,520 in public funds and the Lt. Governor received $134,863 in public funds. There have been no discrepancies cited in either official's disclosure report.

Both the Governor and Lt. Governor have fully complied with the latest reporting requirement of electronic filing for the report to be available on the Internet.

A losing candidate in 1994 filed a complaint against the Governor that the ads were not for fund-raising purposes. The commission will hear the case in the near future.

Campaign statement/promise

POP '94 Citizens Panel

Indicators of whether promise kept

• What kind of campaign spending reforms has been proposed?
• To what extent are legislative bills which tighten requirements for corporate contributions supported?

Governor's statement on results/action taken

Contributions to the Governor, for example, were reduced from $8,000 to $6,000 in a four year period. Corporations are also limited in contributions to political action committees to $1,000 in an election.

State Contractors. Companies that receive contracts from the government in excess of $50,000 and make $100 in contributions in a two-year period must disclose contributions to the commission. This measure attempts to disclose contributions by companies that may have a special interest.

Confidentiality. The confidentiality of hearings have been removed from the law. The amendments require all complaints and hearings to be aired publicly.