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HomeMy WebLinkAboutCOM 0533.094 2000-2002 J.,AtY.OF ' Lam: Harry Kim Jane H. Testa A4ayor Drrec~or a •O~ a ~ f _ County of ~iawaii ~ ' , ` f`~ , , DEPARTMENT OF RESEARCH AND DEVELOPMENT r 25 Aupuni Street, Room 219 • Hilo, Hawaii 96720-4252 (808) 961-8366 • Fax (808) 935-1205 E-mail: chresdev@interpac.net May 28, 2002 Chair James Arakaki Hawaii County Council 25 Aupuni Street Hilo, HI 96720 Aloha Chairman Arakaki: The Department of Research and Development is in receipt of "proposed budget cuts" detailed in a Memorandum dated May 15, 2002, to councilmembers from Coucilman Dominic Yagong. The Department of Research and Development (R&D) offers the following information and concerns: • A 25% cut to the Department of Research and Development puts a tremendous burden upon one department, especially while other departments will receive an approximate 7.7% reduction. As explained below, R&D would not be able to target the visitor industry as suggested in the proposal because of its counter-productivity to the economy and image of Hawaii Island. Thus, to meet the 25% reduction, R&D would have to eliminate: • at least one of its programs, including accompanying personnel; • the development of its resource center intended to generate income to the county; and • county support of the many groups and activities requiring assistance and capacity building. Cow, N~ Fiil~: I~So., Rat: Toc Ref. D~te~. Council Chair James Arakaki May 28, 2002 Page 2 • The visitor industry is specifically targeted by line item fora $225,000 reduction. According to the County of Hawaii Data Book 2000, the visitor industry remains this island's major industry: • Sixteen of the top 30 employers in Hawaii County are directly identified with the visitor industry (hotels, transportation companies); • It provides employment positions of over 6,000 in the hotel industry alone; another 630 jobs in transportation related services; • It accounts for approximately $1.2 million in direct visitor related expenditures (not including all the indirect expenditures) annually for this island alone. Although R&D encourages a diversified. economy, we recognize the need to strongly support the visitor industry's efforts which are critical to the health and well being of the island economy of the whole. The County of Hawaii is part of a statewide network of marketing and advertising that benefits all the islands. Each neighbor island contributes to this effort in its own way, often leveraging smaller amounts into powerful results. Hawaii County always benefits greatly out of this collaboration because our contribution has been historically meager compared to others. A total withdrawal sends the message that we now expect to benefit by everyone else's fair share without contributing anything in the process; or worse, that we don't see the need to be a destination point at all. It says that at a time when support is most needed to shore up the anchor of our struggling economy, we give it nothing. We must remain full partners with our island's visitor industry. Without the small investment we provide, we can expect a decline in the numbers provided above, an even weaker economy, and worse, a damaged relationship with our island-wide and state-wide partners that allows no input into the industry's activities, direction, and development. • The second item targeted for elimination is $25,000 for a Hawaii County Water Plan. Congress and the State of Hawaii have each approved $300,000 to develop a State Agricultural Water Use and Development Plan for Hawaii. This plan was mandated by the State Water Code in 1988, but was never completed due to lack of funding. Both pieces are finally in place. With this Water Plan for agriculture and the completion of a Hawaii Drought Mitigation Plan, the Council Chair James Arakaki May 28, 2002 Page 3 U.S. Bureau of Reclamation can now carry out projects and provide direct assistance to Hawaii. The Bureau of Reclamation is the agency primarily responsible for the development of irrigation systems throughout 17 western states. As we know, the prominent agricultural problem for almost every district around the island has been the absence of a reliable water source or irrigation system. The $25,000 in question will provide a voice for Hawaii County in this statewide plan to ensure that not all the efforts are directed for Oahu alone. It ensures our ability to benefit by the Bureau of Reclamation's projects and assistance. With the $25,000 investment into the $600,000 plan, we have the best chance to affect Hawaii's agricultural future for the least amount of money. We ask that you reconsider this 25% cut to the budget of the Department of Research and Development. Our budget including a 7.7% reduction as shown within the administration's submittal remains for your consideration. Thank you very much, C Jane Testa Director Cc: BIVB BIG Big Island Farm Bureau _ .