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Thursday, November 21, 2024

Hawaii's pandemic-driven economic woes leave lawmakers with tough decisions

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Gov. David Ige | flickr

Gov. David Ige | flickr

Hawaii’s COVID-19-related economic woes include a 22.3 percent unemployment rate and a billion dollar shortfall, forcing lawmakers to face challenging decisions in the weeks ahead. 

An exodus from the state is forecast if furloughs, layoffs and pay cuts are put in place to deal with the shortfall. One teacher indicated she and many other fellow teachers may consider moving from Hawaii if these actions occur.

The town of Kahului’s unemployment rate shot to 35 percent in April – the highest of any metro area in the country, ABC News reported.

Approximately a quarter of Hawaii's jobs are tied to tourism, which has essentially been nonexistent during the pandemic.

Carl Bonham, executive director and professor at the Economic Research Organization at University of Hawaii, told ABC News that due to Hawaii's high cost of living and lack of jobs, they are forecasting an population exodus within the next few years.

Gov. David Ige has recommended massive pay cuts and furloughs for state employees, reported Hawaii News Now

The head of the state’s largest public employee union, Randy Perreira, did not respond to a request for comment, but did tell HNN recently, “The talk of furloughs is nothing but demoralizing for our workers and workforce.”

Sonya Orlando, a district resource teacher, said in a phone interview, “Everybody knows Hawaii’s cost of living is extremely high, that’s the cost of living in paradise.”

However, Orlando said she would be forced to move if Hawaii cuts teacher pay and introduces a one- or two-day furlough.

“I couldn’t afford to live here any more,” said Orlando, whose students are special needs children. She indicated many of her friends, also teachers, indicated they may leave the state, too.

“A lot would move. A lot of us live paycheck to paycheck,” Orlando said, adding a 20 percent pay cut would be unsustainable for her.

“I would consider moving and I know a good handful of people who would have to consider moving,” Orlando said.

As for the impact on schools and students, Orlando said, “I think it would obviously be devastating.”

“Students have already lost about 70 days of instruction, and students with special needs thrive on routine and they’ve had none of that,” she said.

Pay cuts and furloughs, according to Orlando, “would harm our students.”

Lawmakers plan to address the budget gap during a shortened legislative session scheduled next week. 

During the last legislative session in May, solutions to the budget shortfall were proposed, reported Civil Beat. Sen. Donovan Dela Cruz and Rep. Sylvia Luke both hoped to avoid pay cuts, furloughs and layoffs.

Cruz did not respond to a request for comment.

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