Taxpayers could see an extra $100 under Ige’s proposal
Governor unveils tax refund plan in his final State of the State speech
Gov. David Ige delivers his final State of the State address in Honolulu on Monday. Ige is proposing a $100 refund for taxpayers and dependents to help boost the economy; a family of four, for example, could see $400. The governor also urged for more funding and lecturers for physician residency and nursing programs across the state. Photos courtesy of the Governor’s Office
Gov. David Ige speaks to a small audience in his ceremonial room on Monday, instead of in person with state legislators and the public as was typical of the State of the State address prior to the pandemic.
Gov. David Ige delivers his final State of the State address in Honolulu on Monday. Ige is proposing a $100 refund for taxpayers and dependents to help boost the economy; a family of four, for example, could see $400. The governor also urged for more funding and lecturers for physician residency and nursing programs across the state. Photos courtesy of the Governor’s Office
Gov. David Ige speaks to a small audience in his ceremonial room on Monday, instead of in person with state legislators and the public as was typical of the State of the State address prior to the pandemic.
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From refunding $100 to every taxpayer to improving broadband connectivity across the state, especially in rural areas, Gov. David Ige in his final State of the State address on Monday made proposals to help the state get back on its feet from the pandemic as well move forward with future plans.
"I see a Hawaii that has been tested and tested over and over again during this pandemic. We may have bent, but we did not break. I believe in Hawaii, in its people and its purpose," Ige said in a speech from his ceremonial room instead of in person before legislators and the public as was typically done pre-pandemic.
The speech was a mix of looking back at his tenure and the COVID-19 response as well as Hawaii's future. Ige touted the Safe Travels program as the "only program of its kind in the country," and pointed out that the state provided health care for another 110,000 residents under the state's Medicaid program, which is a 34 percent increase since the start of the pandemic. The state has also provided more than 2.5 million COVID shots at hundreds of clinics across the state.
"When we work together, we can do great things," Ige said. "Like those I've talked about today, to help all people who are struggling to make ends meet, whether it's $100 or $400, to provide child care for working parents and preschools for every child in Hawaii and to create a broadband network that includes everyone in every community, all across the state.
"I am proud of the work that we do. And I am proud, proud to be your governor, for all that you do and all that you are," the governor said as he choked up with emotion in what was his final State of the State address as he reaches the end of his two-term limit this year.
One of the bigger highlights in Ige's speech was his proposal for refund checks of $100 for every taxpayer and dependent, allowing a family of four, for example, to receive $400.
"In this way, we'll also inject $110 million back into our economy, giving it a boost as well," Ige said.
With the need for health care workers top of mind throughout the pandemic, the governor also focused on several health and education-related measures, repeating his desire for the Legislature to help fund the expansion of the University of Hawaii's doctor residency program on the Neighbor Islands from only five current positions to 50. (Maui Health spokeswoman Tracy Dallarda said Monday afternoon that Maui Memorial does not have a residency program or any physicians doing their residency.)
Ige also would like to add 39 lecturers across multiple university campuses to handle the increased demand of nursing programs.
He added that with the pandemic, the administration had to postpone its move ahead for universal preschool for youngsters in Hawaii.
"We can't leave it there," he said, citing research on how early learning is crucial to prepare keiki for school and life in general.
The state will also leverage its resources to maximize federal funding for a $400 million investment in broadband, which will help rural areas across the state, Ige said. Internet connectivity became a major issue during the pandemic as students were forced to learn virtually and many people transitioned to working remotely. The monies will come from a combination of federal appropriations and state matching funds, the Associated Press reported.
Overall, Hawaii's economy has been doing far better than in January 2021 when Ige delivered his State of the State address following the pandemic's first year. Ige said the state now expects a positive balance in its budget of more than a billion dollars, due to tax collections that have jumped "an astounding 27.3 percent over last year's totals." He said it was a direct reflection of the rebound in visitor arrivals, increased consumer speeding and the "growing strength of our local businesses."
Following Ige's speech on Monday, members of Maui County's legislative delegation welcomed Ige's idea for a tax refund for residents.
Sen. Gil Keith-Agaran, vice chairman of the Senate's Ways and Means committee, said in a text message Monday, "We consider all of the Governor's ideas and, after the last two years of this pandemic, I am sure all taxpayers can use and will welcome the rebates for themselves and their families."
Keith-Agaran holds the 5th Senate District seat, which includes Wailuku, Waihee and Kahului.
Rep. Angus McKelvey, who represents the 10th House District covering West and South Maui, supported the idea but wanted to see even more for residents.
"While I appreciate the gesture, $100 does nothing for the working people of Hawaii, or their families," he said in an email statement. "The state has the wherewithal given the size of its budget, to make a much more meaningful and substantial rebate to families, especially working families on the lower end of the income tax spectrum. I would ask that the governor revisit his amount and hope that this body would use his proposal to create a more significant tax give-back."
House Speaker Scott Saiki said following Ige's address that the refund "fits into our priority of providing relief to our working families."
"It is something that we will definitely put on our radar screen and will consider, and we will see if we can factor that into the state budget this year," Saiki said.
Saiki pointed out that Ige did not mention increasing the minimum wage in his speech. But according to the Associated Press, Ige told reporters following the speech that he supported the minimum wage hike to $18.
A Senate committee held a hearing on Monday regarding hiking the minimum wage.
Saiki said other measures House leaders are looking at include expanding the earned income tax credit and the food tax credit.
Senate President Ron Kouchi said after Ige's speech that he appreciated Ige's "emotion" at the end of the speech and that it "underscores your commitment." He noted that both the House and Senate have "many shared goals" with the governor and that they looked forward to working together.
* Melissa Tanji can be reached at mtanji@mauinews.com.