StarBulletin.com

Mayor hails rail as economic engine


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POSTED: Tuesday, February 23, 2010

 

Mayor Mufi Hannemann delivered his sixth State of the City address tonight by again touting the benefits of rail transit as a stimulus for the local economy as the city faces tough economic times.

The city is facing a budget deficit of about $140 million in the new fiscal year that begins July 1, but Hannemann said he will submit a balanced budget to the City Council come Monday.

On rail, Hannemann repeated his past assurances that the city is in line to receive $1.5 billion in federal funding for the rail project, which has seen its groundbreaking delayed as the city awaits approval of the final environmental impact statement.

“;There is no other shovel-ready project anywhere in this state that will create as many jobs, in as short a time, as rail,”; he said.

He said the project would create an average of 10,000 jobs a year while pumping $300 million into our local economy.

Hannemann's address came two days after Gov. Linda Lingle said she spoke with federal transportation official to inform them that she would have the state conduct an independent analysis of the project's finances before giving final approval to the project.

Without naming the governor, Hannemann said “;there are still some out there who are trying to pooh-pooh, un-do, and delay five years of hard work and the will of the voters.”;

In addition to the rail project, Hannemann announced plans to move on 100 capital improvement projects over the next six months, valued at $220 million.

But the boost to the economy won't do enough to prevent the city from taking steps already taken by the state, which include two furlough days a month for city employees starting in July.

The furloughs also will lead to the closure of the Fasi Municipal Building and Kapolei Hale on public school furlough days—saving the city about 4.5 percent in payroll costs, Hannemann said.

Meanwhile, 5 percent salary reductions for members of his Cabinet will continue in the new fiscal year, Hannemann said.

Hannemann also outlined efforts being undertaken by his administration to address homelessness, touting the maintenance of public parks as well as the development of the Sea Winds long-term and transitional housing project in Waianae.

He also referred to the proposed development of a similar project in the River Street area of Chinatown, that has been opposed by local residents.

“;It's unconscionable that some want Waianae to continue to be the answer to all of our homelessness problems. Folks, if we're not willing to step forward, homelessness will continue to plague us.”;

Hannemann delivered his speech on the grounds of the Fasi Civic Center grounds on the Diamond Head side of the Mission Memorial Building before a supportive crowd of about 200 people.

To download the full text of the mayor's State of the City address, please click here.