Construction Preview 2014 - (Page 8)

STATE AGENCIES Hawaii's Turnaround Affirms Current Path Forward By Neil Abercrombie, Governor State of Hawaii T he State of Hawaii's $1.1 billion turnaround in just three years not only puts the industry, but also our entire statewide community in a much-improved position to move toward a brighter, more productive future. As we begin the new year, here are the figures: Our state government will have a balanced budget and an added $844 million in fiscal year 2013. Compare that to the $220 million deficit when I took office in 2011 and you'll see how far Hawaii's financial prosperity has advanced. It wasn't easy. Difficult decisions were made to get the state government's financial house in order, but together we were able to do it without raising taxes or furloughing state workers. We have worked diligently to stabilize and grow our economy and fiscal situation. We are also contributing to economic growth by investing in state infrastructure and facilities through prioritized capital improvement projects (CIPs), which also generate jobs for local residents. In fiscal year 2013, OVER 25 YEARS OF QUALITY SITE WORK SITE WORK SPECIALISTS! Servicing Oahu and Maui 1176 Sand Island Parkway Honolulu, HI 96819-4346 Phone: (808) 843-0500 Fax: (808) 843-0067 Lic. # ABC-14156 8 CONSTRUCTION PREVIEW 2014 $1.2 billion was expended for CIPs, and another $2.2 billion has been appropriated for fiscal year 2014. As of October 2013, Hawaii's unemployment rate is 4.4 percent, one of the lowest in the United States, compared with the national unemployment rate of 7.3 percent. "Due in large part to the state's current and projected fiscal position, as well as its recently formalized commitment to addressing its retirement liabilities, we (S&P) see Hawaii's credit quality poised to strengthen." -Standard & Poor's Rating Review, October 9, 2013 Another affirmation of how far we have come is the state's recent success in completing the sale of $860 million of tax-exempt and taxable general obligation bonds. Completed in November, the bond proceeds will be used for various CIPs as well as refinancing existing debt. Hawaii taxpayers will save more than $18 million due to the refinancing of more than $181 million of outstanding bonds. Capital financing is a major part of financing public projects, and it is critical that investors, residents and institutions alike have confidence in the direction of our state. At the height of the Great Recession, our state had a less than favorable rating and faced a dire financial situation. At the end of 2013, however, institutional and retail investors responded much more favorably, signaling confidence in the Hawaii economy and this administration's management of the state budget. For example, during the two-day retail order period of the bond sale, the state gathered more than $159 million of orders from retail investors and their advisors, of which $36 million was from Hawaii. In addition, Standard & Poor's recent assessment of Hawaii's outlook was "positive," citing the state's strong economy, conservative financial management, recent pension reform measures and landmark other post-employment benefit funding legislation. These are significant reflections of local and national confidence in the state's strong financial performance. The difficult decisions and sacrifices we have all made are now paying off. We will continue to responsibly manage the state's fiscal affairs in order to grow our economy and provide quality government services to the people of Hawaii. We will not turn back; we will not repeat the mistakes of the past; and we will meet our fiscal responsibilities. 

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Construction Preview 2014

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