Federal Emergency Management Agency Remaps Flood Zones

The Federal Emergency Management Agency (FEMA) has remapped the "high-risk" flood zone for the island of Oahu, leaving many residents furious at the higher insurance premiums that they will have to pay.  According to federal officials, approximately 1,000 properties will be affected by these new changes, and most of these will now be required to have federal flood insurance. Troy Sumic, a Waimalu resident for over 30 years who now will have to pay for insurance, stated ,"I'm kind of in shock. I'm kind of wondering how they came up with their assessment. We've never had a flood where I live." 

FEMA will offer insurance for owners that covers $250,000 to the property and $100,000 to its contents for approximately $500 per year.  However, if a homeowner's mortgage exceeds the $250,000 coverage, they may be required to obtain more from a private institution.  Property owners who believe that they were inadvertently placed in the high-risk flood zone may apply to FEMA and file for an amendment.  However, residents would be required to hire their own surveyor prior to submitting the amendment.

Source: Honolulu Star Advertiser, 8-25-2014, www.staradvertiser.com
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New Federal Defense Bill Will Help Hawaii's Economy

The United States Senate has approved a $625.1 billion defense bill for the next fiscal year. Specifically for Hawaii, the bill will bring new MV-22 Osprey tilt-rotor aircraft to Kaneohe Bay Marine Corp Base and will provide funding to modernize the Pearl Harbor Naval Shipyard. There will also be more than $400 million designated for military construction in Hawaii.  The President will still have to sign off on the bill before it is passed into law.

United States Representative Colleen Hanabusa, (HI) stated, "The (National Defense Authorization Act) affirms Hawaii's continued importance as the doorstep to Asia and the Pacific, providing for Hawaii's needs and our nation's defense priorities.  That has always been my goal. The bill includes vital funding for our state's defense projects, which means jobs, infrastructure improvements, and investment in breakthrough research and development." United States Senator Brian Schatz (HI) added, "As the U.S. moves towards a strategic re-balancing to the Asia Pacific, Hawaii plays an ever-increasingly critical role."

Source: Honolulu Star Advertiser, 12-20-2013, www.staradvertiser.com
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Civilian Workers Return to Work Thanks to Defense Secretary Hagel

United States Defense Secretary Chuck Hagel has announced that the would be recalling about 350,000 civilian workers who were laid off due to the government shut down last week.  The state estimates that there are about 25,500 federal defense civilian employees and about 9,000 non-defense employees in Hawaii out of which about 25,000 were affected by the government shutdown.  However, Hagel stated that based upon the Pentagon's legal interpretation of the Pay Our Military Act, those "employees whose responsibilities contribute to the morale, well-being, capabilities and readiness of service members" should be allowed to return to work.

United States Representative, Colleen Hanabusa, stated, "Before the government shutdown began, the United States made a statement that it would not allow our brave men and women in uniform, as well as the civilian employees who support their efforts, to be burdened by Congress' inability to do its job."

Source: Honolulu Star Advertiser, 10-6-2013, www.staradvertiser.com
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How the Federal Shutdown Will Hurt Hawaii

With the federal government at an impasse in Washington, many Hawaii residents are concerned how the shutdown will hurt the state of Hawaii.According to United States Senator Brian Schatz (Hawaii) as many as 15,000 defense civilians and 25,000 federal employees could be furloughed because of this government shutdown. The Hawaii National Guard has decided to postpone their monthly drills for nearly 5,000 soldiers and airmen until they receive a clearer picture of the what is happening.  Other group affected include the National Oceanic and Atmospheric Administration (100 employees), shipyard workers at Pearl Harbor (3,000 workers) and all national parks and museums.  State of Hawaii Finance Director, Kalbert Young, stated, "And like sequestration, the actual in-practice implications are going to take time to materialize and for us to be able to see them so that they can be evaluated. I would like it to end tomorrow or tonight, but my suspicion is it will be a couple of days. But what if it gets to be a week? That gets to be a real problem."

Young added that there are many programs that are administered by state and local officials on behalf of the federal government.  For example, Medicaid, temporary assistance for needy families, subsidized school lunches and food stamps are all handled locally.  Young cautioned, "The question now is, Well, who is paying for all these programs? Because what I'm dealing with is now, on Oct. 1, when the federal government is not in action, nobody has said anything about these programs. So is the public expecting the states or the local governments will pay for these on behalf of the federal government? Because the states and the counties don't have any clear picture on whether or not they will be reimbursed."

Source: Honolulu Star Advertiser, 10-2-2013, www.staradvertiser.com
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Effects of Sequestration Mitigated by Strong Hawaii Economy

State economist Eugene Tian estimated that federal spending cuts from sequestration would cost the state of Hawaii about $462 million in direct loss, and a total of $684 million due to the ripple effect that the reduced federal spending would cause.  However, Tian noted that Hawaii's economy has rebounded enough over the past year to mitigate the effects of sequestration and still believes that the state'd gross domestic product (GDP) would increase by 2.4 percent in 2013.  This increase is due to a stronger construction industry and a booming visitor industry.  State budget director, Kalbert Young, added, "My interpretation, at the top macro-level, is that sequester is not going to be as significant as originally feared." However Young noted that "at the micro-level" there could be still be significant impact on certain individuals, businesses and nonprofit organizations.

Hawaii economists were especially worried by the effects of sequestration due to the large military presence in the islands.  According to Eugene Tian, the federal government accounts for approximately 15.3 percent of the state's economy and 13.7 percent of wage and salary jobs.  This equates to approximately $20.8 billion annually in the state, out of which $10.5 billion is from salary, wages and procurement contracts.  As a result, when sequestration cuts were announced, many economists were extremely worried about how this would effect the state as a whole.

Source: Honolulu Star Advertiser, 8-10-2013, www.staradvertiser.com
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Two New Coast Guard Ships to Be Funded and Based in Honolulu

United States Senator Brian Schatz has announced that the Senate Appropriations Committee has approved $632 million to fund two new Coast Guard ships in Honolulu.  The vessels will be National Security Cutters, each 418-foot long with the ability to conduct long range patrols with duties including fisheries enforcement, drug interdiction, search and rescue and other national security missions.  The new ships would have a 12,000 nautical-mile range over 60 days, as compared to the 9,600 nautical-mile range over 45 days that the older vessels have.

Senator Schatz commented, "The Senate took a big step in approving resources for the Coast Guard to build two National Security Cutters and bring them to Hawaii.  The National Security Cutter is the most technologically advanced ship in the Coast Guard's fleet. Bringing these two new cutters to Honolulu will give the 14th Coast Guard District the capability it needs to safeguard Hawaii's maritime interests."

Source: Honolulu Star Advertiser, 7-23-2013, www.staradvertiser.com
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Sequestration Force Over 16,000 Civilian Workers in Hawaii to Take Furloughs

According to the Pentagon, across the nation, 85 percent of civilian Defense Department workers will be furloughed because of sequestration cuts, saving the federal government $1.8 billion during the current fiscal year.  Spokesman for the Pentagon, George Little, added, We're getting ahead of ourselves talking about layoffs at this stage.  Right now we're in the furlough period, and no decisions have been reached about what may happen going forward."

For the state of Hawaii, federal sequestration cuts will mean that over 16,000 civilian workers in the state of Hawaii to take unpaid furlough days.  Originally, it was estimated that Hawaii's Defense Department workers would have to take 22 unpaid furlough days to meet the new budget guides.  However, this number has dropped in half to 11 unpaid furlough days.  Still, it is estimated that the furlough days will put a dent in Hawaii's economy of approximately $134 million.  Among those affected are 1,000 Hawaii Air and Army National Guard members, 6,000 Navy funded employees, 7,000 Army funded employees, and 2,000 Air Force and Marine Corps Base Hawaii civilians.

Source: Honolulu Star Advertiser, 7-9-2013, www.staradvertiser.com
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Honolulu Rail Project to Get Full $250 Million From Federal Government in 2014

The United States House and Senate appropriation committees have approved federal funding for the Honolulu Rail Project in the amount of $250 million in 2014.  Over six years, the city of Honolulu is hoping for a total of $1.55 billion in federal funds.  The final appropriations for 2014 will still be subject to a vote in the House and Senate, as well as President Barack Obama's final signature and approval.  United States Senator Mazie Hirono stated, "In these difficult economic times, when decisions about federal funding remain highly competitive, these actions by the House and Senate appropriations committees demonstrate that support for Honolulu's rail project remains solid."

Source: Honolulu Star Advertiser, 6-28-2013, www.staradvertiser.com
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Hawaii Army Escapes Troop Cuts

Army Chief of Staff, General Ray Odierno, stated that the entire service will shrink by approximately 14 percent by 2017.  This represents a force reduction of about 80,000 troops from the peak of 570,000 soldiers in 2010.  Army officials added that the reductions are mostly due to federal budget cuts.

Fortunately for Hawaii's economy, the Army will actually be increasing the number of troops in the Hawaiian Islands slightly.  The Army has approximately 23,000 troops in Hawaii, and an additional 165 soldiers are expected to become a part of Schofield Barracks and Fort Shafter.  United States Senator Mazie Hirono, stated, "I am very pleased that the Army decided to leave its force structure in Hawaii untouched for the near future.  This is important because the Army, along with the other branches of the armed forces, will play a critical role in President Obama's strategy to re-balance to the Pacific."

United States Representative Colleen Hana­busa, added that this news "reaffirms our nation's commitment to Asia-Pacific, and I am pleased to hear that both Schofield Barracks and Fort Shafter will gain soldiers for enhanced engineer and mission command capabilities, as well as headquarters functions to better serve our military personnel based in Hawaii.  Our men and women in uniform not only risk their lives to defend our nation, they also enrich our state's diverse culture and contribute to our communities."

Source: Honolulu Star Advertiser, 6-26-2013, www.staradvertiser.com
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Sequestration Hits Hawaii Civilian Defense Workers Hard With Furloughs

Starting July 8, 2013, more than 14,000 civilian defense workers throughout the state of Hawaii will be forced to take one furlough day per week due to sequestration.  This 20 percent pay cut is part for the federal government's plan to reduce spending by $80 billion.  The exact total cost to the state of Hawaii is still unclear as government agencies scramble to secure other sources of funding.  One estimate believed that the furloughs would cost the state's economy approximately $134 million, but others believe that number may be significantly higher.

It is also unclear how long sequestration and furloughs will last.  While this current round is scheduled to end in September, there is a good chance that it would be extended past that.  Many economists believe that 2014 would be an even tougher year for federally funded projects and departments and worry that some departments may decide on layoffs as opposed to furloughs.

Source: Honolulu Star Advertiser, 6-23-2013, www.staradvertiser.com
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Senator Schatz Urges TSA to Include Interisland Flights in PreCheck Program

United States Senator Brian Schatz has sent an official request to the Transportation Security Administration to include Hawaii's interisland flights in TSA's PreCheck program.  Under the PreCheck program, certain travelers and U.S. military personnel are allowed to enter special security lanes during screening which do not require the removal of shoes, belts, and jackets as well as laptops or small liquid containers from carry on bags.  Hawaiian Airline CEO Mark Dunkerley strongly supports the Senator, and added that offering PreCheck on interisland flights "would greatly improve the ability of our kama­aina customers to move more quickly and efficiently between different cities in our state.  It's a very important issue for our guests."

Source: Honolulu Star Advertiser, 6-18-2013, www.staradvertiser.com
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Association of Southeast Asian Nations to Have 2014 Meeting in Hawaii

United States Secretary of Defense, Chuck Hagel, has invited the defense ministers from the 10 countries in the Association of Southeast Asian Nations to Hawaii for their annual meeting in 2014. In a speech he mad in Singapore, Hagel stated, “I am extending an invitation to ASEAN defense ministers to meet together next year in Hawaii. I believe this first-ever U.S.-hosted meeting of ASEAN defense ministers will provide another opportunity for us to discuss a shared vision for a dynamic, peaceful and secure future for the region.”

The Association of Southeast Asian Nations include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. United States Senator Brian Schatz commented, “Holding the ASEAN defense ministers’ meeting in Hawaii would showcase Hawaii’s critical role in Asia and the Pacific. Because of its strategic location, Hawaii plays an important part in the United States’ ‘pivot to Asia.” Schatz added by hosting the event in Hawaii it would “provide further proof that Hawaii will continue to be a prime location to host national and international meetings that will bring in revenue for the state.”

Source: Honolulu Star Advertiser, 6-5-2013, www.staradvertiser.com
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Hawaii Economy – Federal Government Starts Sending Out Furlough Notices

As a direct result of sequestration, various federal government departments and agencies has started to send out furlough notices to thousands of workers throughout the state of Hawaii. Sequestration will cut $85 billion in defense and non-defense cuts during this fiscal year. Over the next ten years approximately 1 trillion will be cut in federal funding.

The U.S. Pacific Fleet has stated that workers would be subject to one day of furlough per week for the last 22 weeks of the current fiscal year. This will effect over 4,000 civilian workers, many of whom work at the Pearl Harbor Naval Shipyard. Shipyard spokerwoman, Jensin Sommer stated that the shipyard workforce is “definitely very concerned about the impacts of potential furlough.” Sommer added, “I can’t speak for them at large, but I know that individually, people are concerned about the measures that they are going to have to take to make up for the loss of 20 percent of their income.”

The Justice Department stated that some of their employees will be furloughed for 14 workdays. The Transportation Security Administration stated that they will also be forced to furlough workers and warned, “as sequestration takes effect, travelers can expect to see lines and wait times increase as reductions to overtime and the inability to backfill positions for attrition begin to occur this month.” TSA added that due to staffing decreases, security waiting times at the larger airports could double.

The U.S. Army Pacific stated that approximately 7,032 civilian workers in Hawaii would be furloughed by 22 days or 176 hours of work. The Hawaii National Guard added that sequestration would result in 1,100 citizen soldiers and airmen being furloughed, though the exact amount of time has not been released. Hawaii National Guard spokesman, Lt. Col. Chuck Anthony, stated, “So if this thing keeps going for a long period of time — let’s say sequester continues to haunt us through the end of the fiscal year, it’s pretty obvious this thing is going to start cutting into readiness. So it’s an economic hardship, and it’s probably also going to be a readiness hardship. The amount of training that we are doing is being greatly curtailed.”

Source: Honolulu Star Advertiser, 3-5-2013, www.staradvertiser.com
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Section 8 Rental Housing Vouchers May Be Cut

The United States Department of Housing and Urban Development manages Section 8, a federally funded rent assistance program which helps approximately 3.1 million low-income households across the country. However, due to the federal “sequester” which is scheduled to kick in on Friday, if Congress is unable to come to some sort of agreement it is quite possible that significant cuts would be made to Section 8 funding. In anticipation of this possibility, 3,585 families and 1,365 landlords on the island of Oahu received a letter stating that rental housing subsidies may be reduced or terminated effective May 1, 2013. Section 8 is available to families whose income does not exceed 50 percent of the median area income. For the City and County of Honolulu, that means that a family of four must earn less than $48,950 to qualify. The family must then spend 30 percent of their gross income on rent and federal Section 8 vouchers can pay for the rest.

Source: Honolulu Star Advertiser, 2-28-2013, www.staradvertiser.com
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Sequestration Will Slow Hawaii’s Economic Growth

According to a report released by Eugene Tian, the state’s chief economist, sequestration, if enacted, would slow Hawaii’s economic growth to 2.6 percent in 2013, as opposed to the 3.4 percent predicted if no mandatory spending reductions are enforced. Tian noted that military spending accounts for 9.6 percent of Hawaii’s gross domestic product and federal civilian workers adds another 5.8 percent. If sequestration occurs, jobs cuts would be made and remain jobs may be furloughed. This would have a significant effect to Hawaii’s economy.

Source: Honolulu Star Advertiser, 2-23-2013, www.staradvertiser.com
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Federal Spending Cuts May Lead to Flight Delays

Members of the United States Congress are currently working against the clock to come up with an acceptable national budget. If they are unable to come to an agreement, a process known as sequestration will kick in and provide automatic federal spending cuts of approximately $1.2 trillion over the next ten years. Since Hawaii’s economy is heavily dependent on the military and civilian Department of Defense sectors, there is a serious concern as to how Hawaii’s economic rebound will be effected by these potential cuts.

One area which is being overlooked is the fact that air-traffic control personnel would be effected by sequestration. U.S. Transportation Secretary, Ray LaHood, noted that there may be major flight delays around the country as the Federal Aviation Administration would have to furlough staff at air-traffic control facilities. LaHood stated, “It’s going to be very painful for the flying public. This is going to have an enormous impact. Once airlines see the potential impact of these furloughs, we expect that they will change their schedules and cancel flights. It’s not possible to continue the same schedules with less people.”

Hawaii Tourism Authority’s vice president of brand management, David Uchiyama, stated, “It would have a huge impact if airports were closed, but my understanding is that it wouldn’t get to that. I think it affects us more with air traffic controllers. At this point, fortunately because we’re not a business destination as much as we’d like to be and more people are here on leisure, I don’t think the impact will be as great. That’s going to create major adjustments people will have to make to compensate for the delays, which I think over time they can adjust for. But for us a good portion of our business is leisure, and I think there’s a little more flexibility. But it does affect the traveler’s experience, and that’s something we’re very sensitive to.”

Source: Honolulu Star Advertiser, 2-23-2013, www.staradvertiser.com
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350 Pearl Harbor Shipyard Workers Might Be Laid Off

BAE Systems has issued a nationwide notice to their “ship repair team” that more than 3,500 production, management and administrative staff may be laid off due to the budget stalemate facing the U.S. Congress. For the state of Hawaii, this would mean that approximately 350 Pearl Harbor shipyard workers would be laid off, since the Navy would be forced to cancel all surface ship maintenance scheduled at private shipyards to make their budgetary requirements. President of the Ship Repair Association of Hawaii, Iain Wood, commented, “Obviously those folks work here, live here, eat here, spend their money here, pay their taxes here, so that will have an impact on the economy.”

If Congress is unable to act before March 1, 2013, sequestration would occur for the U.S. Armed Services, which would mean $500 billion in defense cuts and $500 billion in non-defense cuts over the next 10 years. U.S. Senator Mazie Hirono commented that if sequestration occurs, approximately 18,000 defense workers in Hawaii would be effected through either furlough days or job loss. In terms of a dollar amount, sequestration would cost the state of Hawaii approximately $2.3 billion per year.

Source: Honolulu Star Advertiser, 2-22-2013, www.staradvertiser.com
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125 Civilians at Schofield Barracks Furloughed for 30 Days

A total of 125 BAE Systems Hawaii workers at Schofield Barracks were notified that their jobs would be furloughed for the next 30 days. These workers included mechanics, welders and painters who work on various Army vehicles. According to the company’s director of public relations, Alan Hayashi, the furloughs are in “direct response” to the Pentagon budget cuts.

United States Senator Mazie Hirono warned last week that federal cuts could cost Hawaii as many as 11,000 jobs and result in furlough days for 18,000 civilian Department of Defense workers. Hirono stated, “My heart goes out to these (BAE) workers and their families. But if sequestration goes into effect, these furloughs will be just the first impacts on Hawaii families and the isles’ economy.” Hirono warned that Congress needs to take action by March 1, 2013 to avert sequestration, or automatic federal spending cuts. If enacted, sequestration would equate to approximately $500 billion in Department of Defense cuts and $500 billion in non defense reductions over the next 10 years.

Source: Honolulu Star Advertiser, 2-20-2013, www.staradvertiser.com
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Concern Rising at Pearl Harbor Navy Shipyard

The United States Navy has recently announced that they will be forced to cancel planned repairs on at least 24 ships around the country due to the fact that Congress has not approved an appropriation bill for the 2013 fiscal year. This directly affects the Pearl Harbor Navy Shipyard which was slated to do a $200 million modernization of the USS Russell and a $35 million repair on the USS Chafee. There is a significant concern as to how many jobs would be lost at the Navy Shipyard if Congress does not act quickly.

Source: Honolulu Star Advertiser, 2-19-2013, www.staradvertiser.com
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Kawainui Marsh in Kailua Undergoes Restoration

The U.S. Army Corp of Engineers is working together with the Hawaii Department of Land and Natural Resources to help restore the Kawainui Marsh in Kailua. The 830 acre wildlife habitat is the largest remaining wetland in Hawaii and the home of many endangered Hawaiian waterfowl. Experts hope that the restoration will increase the number of aeo (Hawaiian stilt), alae ula (Hawaiian moorhen), alae keokeo (Hawaiian coot) and koloa maoli (Hawaiian duck). The project is 75 percent federally funded, while the Department of Land and Natural Resources will pay for the remaining 25 percent. The entire restoration is expected to cost $6.4 million and hopes to be completed by the Spring of 2013.

Source: Honolulu Star Advertiser, 1-7-2013, www.staradvertiser.com
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