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POSTED: Saturday, October 11, 2008
                       

This story has been corrected. See below.

Gov. Linda Lingle is planning a series of steps to help Hawaii weather the economic crisis raging across the globe.

               

     

 

 

ECONOMIC PLAN         Gov. Linda Lingle's five-point plan to shore up the local economy:         » Increase tourism marketing.         » Explore ways to get more investment in the state.         » Increase speed in permitting for construction projects.         » Lower fees and taxes; crack down on tax cheats.         » Get more federal assistance.

In a meeting yesterday with Star-Bulletin editors and reporters, Lingle said she has a five-point plan to deal with both the state's projected $903 million deficit and the international credit crisis that has caused world finances to tremble.

First, the state needs to beef up its tourism marketing, noting that Hawaii spent millions after the terrorist attack in 2001, Lingle said.

“;We are trying to create a demand when people are fearful. ... They don't know if their 401(k) is going to go down more, is stock going to lose value,”; Lingle said, adding that state tourism officials would make the case that “;Hawaii is a great value.”;

Lingle also is launching travel missions to both China and South Korea next month. She will travel to China, while Lt. Gov. James “;Duke”; Aiona”; will be in Korea, in advance of the January Korea visa waiver program.

“;We want to position the state so that when the economy turns, we're where people will want to visit and invest,”; Lingle said.

To get more construction projects started sooner, she said she has created “;an internal strike force”; to work on ways to speed up permitting.

“;The idea will be to look at projects that are somewhere in the process, but not on the street yet,”; Lingle said, adding that she thinks there is $1 billion in construction that can be pushed forward within the next year.

“;Construction spending is a multiplier in our economy,”; the governor said.

Lingle said she agrees with assessments that the problems facing the state and nation are severe and cautioned, “;I expect the next few quarters to be very, very tough.”;

The fourth point, she said, was to ask the Legislature to reduce taxes. She pointed to a new tax levied on freight shipped to Hawaii that she objected to earlier this year. Lingle also said she wants to increase the efficiency of tax collections and crack down on those who don't pay any excise tax on transactions.

Finally, Lingle said her administration would aggressively look for federal grants to supplement state expenditures.

Yesterday was the deadline for state departments to turn in their plans for a series of budget cuts. Lingle said she will review them and incorporate suggestions from community members before drafting a new state budget.

The state's annual $5.3 billion budget is prepared for the next two years, so Lingle will be looking at ways to reduce a state spending plan of more than $10 billion.

Lingle said she will continue state construction projects, including those that had been planned to be paid for with a $630 million bond sale.

The collapse on the credit market caused Hawaii to pull back its bond sale, Lingle said. Projects will move ahead under temporary cash financing until the state could go back to floating bonds.

               

     

 

 

CORRECTION         » The state of Hawaii has a projected $903 million deficit. A story on Page A6 Saturday said the estimated deficit was $903 billion.