Amid pandemic, Ige looks to expand Hawaii’s digital economy

Hana is on the broadband list for DOT pilot project

Against the backdrop of the pandemic, Gov. David Ige is looking to broadband as one possible boost for Hawaii's economy, which is buckling under one of the highest unemployment rates in the nation.

During the annual State of the State address Monday morning, Ige offered a stark contrast to the year prior when Hawaii had the best unemployment rate in the nation and few had heard of the novel coronavirus.

Now, Hawaii is among the hardest hit states in terms of job losses and economic activity, he said.

"Moreover, in the face of a life-threatening virus, where is the sweet spot between ensuring the health of everyone and keeping the economy going?" Ige asked.

The governor noted that more than 580,500 Hawaii workers filed unemployment claims last year and echoed the state's need to move away from a tourism-dependent economy.

Among short- and long-term recovery initiatives, Ige emphasized that Hawaii would benefit from pivoting to a digital economy, which can serve as a "foundation" for the state's economic resilience.

In a digital economy, the state can weather future disruptions, regardless of its economic engine; it doesn't matter where workstations are located; the local workforce can compete globally; and children won't have to move to the Mainland to get jobs, he said.

"That's why, in the wake of the pandemic, I am calling for the creation of a plan of action to not just reboot but to upgrade our economy," Ige said. "To create a Hawaii 2.0, if you will."

The governor highlighted an expansion of broadband services, particularly to rural areas, such as Hana.

"I can assure you that broadband will be a priority for the state in the coming years," Ige said.

State Department of Transportation Deputy Director of Highways Ed Sniffen will accelerate his pilot project to connect rural communities to broadband service. Using federal funds, along with state and private resources, the project will focus on Hana, Puna, Ka'u, Nanakuli, Wai'anae, Waimanalo, Kalihi and Kapa'a.

Rep. Lynn DeCoite on Monday afternoon said access to quality broadband services is an issue across her district and she's happy Hana is going to be part of the DOT pilot.

"During the shutdown, we had to get special permission for the students from Hana High and Elementary School to be able to use the school Wi-Fi from cars in the parking lot -- this was the only way some students and their families had access to their distance learning online materials," she said. "This pilot project is a big first step, I haven't been briefed on all of the details yet, but I am optimistic and hope that more areas will get access as well."

During a recent East Maui Reservation Project meeting hosted online by Sen. J. Kalani English and DeCoite, who both represent East Maui, Molokai and Lanai, officials discussed plans to expand internet service to the rural area.

English said during the meeting that Hawaiian Telcom is already working on plans to get better connectivity through the back side and into Hana. He estimated that in five years, all the hard-to-reach, rural areas should have cell coverage and internet access.

The DOT did not immediately respond Monday to questions on project details.

Ige said during his speech that a broadband hui comprising more than 200 local stakeholders formed during the pandemic with the goal of developing broadband infrastructure accessible and equitable for all.

The governor said the pandemic highlighted the state's "digital inequity."

He added that part of the state's task is to make sure a Nanakuli student can access an online lesson plan as easily as a student in Kahala. Also, a Federal Communications Commission grant will support a telehealth initiative to connect low-income patients with high medical risks to health care providers.

"A critical part of reprogramming our economy is also the creation of a healthy statewide broadband network," Ige said. "All of us dramatically increased online activities, such as online learning, telework, telehealth, and workforce development and training."

Ige said his legislative package this year includes a bill to create a Broadband and Digital Equity Office to oversee efforts and ensure the state receives its share of $7 billion in new federal funds for broadband infrastructure and digital equity programs.

The governor emphasized a diversified economy, saying Hawaii's dependence on tourism makes it vulnerable to sudden and unexpected changes.

"We've been here before. In the 1970s, agriculture by itself couldn't relieve us of our addiction to tourism. Neither will technology in the 21st century -- not by itself," Ige said. "But it can be used to support a multipronged approach toward greater diversification -- even as we move to get tourism back on its feet."

During a time when government is being asked to be all things to all people, Ige said, every state is facing historic revenue shortfalls.

In Hawaii, actions to address the shortfalls include reducing the current budget by $402 million, transferring $345 million from the rainy-day fund and eliminating $350 million from state programs.

For the first time in state history, $750 million was borrowed to help make payroll.

All the while, revenues will likely not fully recover to pre-pandemic levels until 2024, he said.

Ige did offer some good news for the economy.

The state's Council on Revenues recently projected Hawaii's economy will outperform earlier dire predictions and generate nearly $6.3 billion in tax revenues for this fiscal year.

"That's why we were able to adjust the DOE's proposed reductions and now have about $123 million to restore to our classrooms," he said.

Also, the construction industry has been a bright spot. Investments of $1.1 billion in state capital improvement projects are expected. Federal transportation projects -- such as airports, harbors and highways -- will add another $1.1 billion. The private sector is expected to contribute another $10 billion and thousands of jobs to help restart the economy.

Ige began his State of the State address with an emphasis on public health. He said the state took tough but necessary actions, such as being among the first to demand pre-travel testing and quarantine procedures.

"That's one of the reason we lead the nation with the lowest COVID infection and death rates," he said.

On Feb. 28, the Hawaii State Laboratories were among the first in the nation to begin testing for the coronavirus. On March 25, a stay-at-home order was issued. On March 26, a 14-day quarantine for travelers was among the first in the nation.

He said in spite of the massive shift that Hawaii -- and the world -- was forced to make, there is hope moving forward.

Ige said the state is implementing a comprehensive strategy for the distribution of vaccines in every county. Also, it will be working with the Biden administration to expedite the distribution of vaccines to everyone.

* Kehaulani Cerizo can be reached at kcerizo@mauinews.com.