Gathering Place
Ann Chung
At its core, Act 221
is about creating jobsAs we near the last week of the 2003 legislative session, the rhetoric and misinformation on Act 221 is at a fever pitch. It is easy for the public to be confused on this issue.
I believe it's time to take a moment, step back and reflect on the truths about Act 221. Reasonable people can disagree, but instead of talking to one another, we are talking at one another through media spin and rhetoric. I am particularly disappointed that instead of arguing the merits of Act 221, the administration has resorted to media spin and playing politics.
But the real story behind Act 221 is not about the administration vs. the state House or the Hawaii Technology Trade Association or the Hawaii Venture Capital Association. Act 221, at its core, is about economic diversification and creating high-paying, quality jobs. This is why all of the largest business organizations in Hawaii are in support of Act 221.
HTTA, HVCA, the Maui Economic Development Board, Enterprise Honolulu and the Chamber of Commerce of Hawaii all have vocalized their support for allowing Act 221 to run its course. These organizations together represent thousands of Hawaii's businesses.
Act 221 is not about one special-interest group, it is about diversifying Hawaii's economy -- something that is of interest to and has an effect on everyone.
We in the HTTA have tried on numerous occasions to explain the truths and merits of Act 221 to the administration.
>> Based on information shared by only 15 tech companies, more than 1,000 new jobs are projected by 2006. If more companies are allowed to use Act 221, the number of quality jobs can quickly multiply into the tens of thousands. These jobs have salaries far above the state and national average of more than $50,000 per year.
>> Enterprise Honolulu estimates that 1,000 high-paying, quality jobs create an additional 1,050 indirect jobs. In addition, state taxes that would be derived from Act 221-funded companies are estimated at about $10 million per year.
>> MEDB attributes the high-tech industry growth in Maui County to Act 221. Maui County's tech industry now has more than $120 million in yearly revenues, $40 million in payroll, and employs an estimated 1,000 Maui residents, with estimated median salaries of $60,000 per year.
But all of our studies, job-creation numbers and heartfelt personal e-mails from tech companies have not made a significant difference in the administration's continued attempts to circumvent the legislative process and enact changes to Act 221. The administration continues to look only at the short-term cost of the investment made into economic development. "We have a budget shortfall -- if it wasn't for the budget, we would never consider changing Act 221," is what we have been told by the administration. Well, the revenue-loss numbers are phantoms and the state House has come up with a solution to balancing the budget without raising taxes and without taking 10 steps back on our road to economic diversification.
As one of HTTA's members stated at a legislative hearing, "There are two types of corn: seed corn and feed corn. Any farmer knows, you don't eat your seed corn." Let's not undo all the good that has been accomplished through Act 221. Let's allow the seed that was planted called Act 221 to bear its fruit in thousands of high-paying, quality jobs for Hawaii's children and economic diversification for our state.
Ann Chung is executive director of the Hawaii Technology Trade Association.