Editorials
Saturday, January 2, 1999

Hawaii doesn’t like
slow economic growth

BACK in the days when Hawaii's economy was growing at a healthy pace, we used to hear people call for slower growth. Rapid growth was bad, we were told, because development destroyed open space, choked the highways with too many cars and provided mostly low-paying jobs in tourism.

Maybe so, but Hawaii is learning that slow growth has its price, too. The numbers on bankruptcy set another record last year. As of Wednesday, 5,774 bankruptcy cases had been filed in federal court, a 29 percent increase over 1997. In 1990 there were only about a thousand bankruptcies, but the number has risen every year since. In the year ending Sept. 10, Hawaii topped the nation in highest percentage increase in bankruptcy filings.

The slow economy is also reflected in the population figures. In 1998 Hawaii's population grew by only 0.1 percent -- 944 people -- one of the smallest rates in the nation, the U.S. Census Bureau reports. Nearly 16,900 more people moved out of Hawaii than moved to the islands from other states. Offsetting this out-migration were Hawaii's high birth and low death rates, which added 10,300 people, and the arrival of 6,400 immigrants from foreign countries.

Only the District of Columbia, long troubled by corruption and inefficiency in local government and a high crime rate, had a higher negative domestic migration rate than Hawaii in 1998.

Why are people leaving? Probably to look for jobs. Tens of thousands of jobs have been lost in the islands, particularly in the construction industry, since the slump began. Moreover, many young people who go to college on the mainland stay there after graduation because they can't find work here.

The weak economy and the exodus of residents have their advantages. Real estate prices have plummeted. There may be less traffic on the roads, smaller crowds in the shopping malls. Developers put their projects on hold, sparing open space at least temporarily. Fewer children in school mean less pressure to hire more teachers and build more classrooms.

But the benefits of slow growth are not evident to the people who filed for bankruptcy and the ones who were forced to move to other states because of lack of opportunity here. Now that we have slow growth, nobody seems to like it. People are calling on the politicians to do something -- anything -- to stimulate the economy's health.

The weak economy was Ben Cayetano's main concern in his first term as governor. Despite his claims that recovery has begun, the consensus is that the economy is still treading water.

Of course, if the politicians succeeded in reviving the economy, some people would then tell them to slow it down. We want the economy not too hot and not too cold -- just right. Currently it's still too cold for most tastes.

School to work

A program designed to help young people make the transition from student to employee needs some fine-tuning. State Auditor Marion Higa has released a report stating that the $10 million school-to-work program lacks a clear mission, goals and a way to assess results.

The idea is to provide young people with the specific academic and technical skills they need for employment -- certainly a constructive purpose. But the auditor's report said the effort falls far short of statewide implementation. In addition, control and accountability for spending are weak.

Murray Towill, state executive council chairman for the public-private partnership effort, agreed that much work remains to be done before the system can meet expectations. But he disagreed with Higa's contention that the program lacks a clear mission and goals.

On top of $10 million in federal funds provided over a five-year period, $1 million in state funds has been appropriated for the program and the Department of Education spends over $5 million to help support it. Federal funding lapses this year.

Higa recommended the Legislature provide no more funding until the executive council clearly defines the system's mission and goals, tells how it will measure its success and provides better accountability of funding.

The Legislature should take a closer look at the program and require action to meet deficiencies. But it would be a mistake to withhold funding and thereby close down the operation without giving it an opportunity to correct its problems.

Football double-header

TWO football games may be better than one. The assessment of college football's first double-header, played on Christmas Day at Aloha Stadium, is positive. Officials of the universities of Colorado and Oregon, which played in the Aloha Bowl, and Washington and Air Force, which met in the Oahu Bowl, said all went well.

The title sponsor of the inaugural Oahu Bowl, Jeep, is expected to extend the event for four more years. The Pac-10 conference, which had a one-year agreement for the Oahu Bowl, is expected to extend its commitment. The Western Athletic Conference is also expected to continue its participation.

Both games were nationally televised, and both drew sizable audiences. ABC reported a rating of 5.8 for the Aloha Bowl, an improvement from last year's 5.2. ESPN2 had a 3.35 rating for the Oahu Bowl. For Hawaii the big thing is the exposure the games give the islands, and they delivered. Credit sports promoter Lenny Klompus for some creative thinking.

Meanwhile, the transfer of the Hula Bowl to Maui has given that event a boost and provided Garden Islanders with an opportunity to get in on the fun. Despite the University of Hawaii's problems, Post-season college football is thriving in Hawaii.

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Published by Liberty Newspapers Limited Partnership

Rupert E. Phillips, CEO

John M. Flanagan, Editor & Publisher

David Shapiro, Managing Editor

Diane Yukihiro Chang, Senior Editor & Editorial Page Editor

Frank Bridgewater & Michael Rovner, Assistant Managing Editors

A.A. Smyser, Contributing Editor