Top Democratic Candidates for Governor Speak on Affordable Housing, Economic Diversification, Lowering Cost of Living
by Edwin Quinabo
The headwinds are heavy for Hawaii’s next governor.
The unrelenting force of inflation is slashing income and wages across the nation. In Hawaii the housing crunch leading to skyrocketing real estate and rent is particularly acute relative to other states. Homelessness. Violent crimes. A stronger, diverse economy. Demand for more and better quality jobs – all these challenges exacerbated by the pandemic are waiting for Hawaii’s next top executive.
From a glass is half-full perspective, at least Hawaii is not embroiled in the thick acrimony of division over abortion and gun violence as in the mainland. There is relative high consensus locally on both issues and the local laws reflect that and are not expected to change, politicos say.
Also the recent passing of the long-awaited and popular minimum wage increase could offer relief for many sectors of Hawaii’s population, including many in the Filipino community who are working in the service-sector.
Still, what many Hawaii voters reportedly want is a strong crisis manager-leader because a great number of Hawaii households (some 40 percent) find themselves in crisis, living paycheck to paycheck, even as they hunker down in multi-generational dwellings to offset costs and hold down multiple jobs.
Hawaii’s next governor will be the state’s first post-pandemic (ongoing but relatively manageable) governor. Ingenuity. Fresh ideas and new ways of governance are arguably more needed than ever. Politicians and economic experts say the pandemic exposed Hawaii’s weaknesses and vulnerabilities. Most notably, that tourism – the state’s bread and butter for decades – as reliable it has been, must be complemented by multiple robust industries.
The “diversify-the-economy” mantra since the 1990s, finally must be put into motion, economists say. Agriculture. Aquaculture. Research and Development. High tech and science. Small scale clean manufacturing. These are all areas Hawaii could expand in the pursuit of economic diversification, politicians have been saying for a while.
Both as a potentially economic juggernaut industry and a means to preserve Hawaii’s chief asset, its natural beauty – the green movement with goals of bolstering renewable energy (wind, solar, hydro, biomass) or revolutionizing net-zero buildings is an area collectively, any governor of any forward-thinking state cannot ignore when thinking about building a diversified economy.
To be successful in such an ambitious string of projects as building a future complementary green economy would take collaborative efforts from all levels of government and the private sector, which means the next governor must also be a collaborator with the social smarts to lead effectively.
What COVID-19 has also showed is how dependent Hawaii’s economy is on small businesses, how they employ tens of thousands and contribute to capital flow immensely. The blunt force of the pandemic has many small businesses (those that survived) still not yet fully anchored in economic recovery mode. Our local small business community is depending on the next governor to get the state as quickly as possible out of economic mire and back on track to more prosperous times.
Fifty percent of Hawaii residents have experienced income reduction since the outbreak of COVID-19. Social services in Hawaii is becoming increasingly important and it will take reimagining from the next governor to sustain social services and provide efficient access. Experts believe social service is optimal when it encourages self-sufficiency with programs like workforce retraining programs in place. Voters will look to a governor who believes in investing in people – and part of that includes a helpful lift in times of urgency.
The sign of the times is clear that Hawaii along with the rest of the nation is in a state of rapid transition. Voters are hoping for the right governor to maximize vertical gains and finally address areas of neglect.
Hawaii’s Primary Election is on Saturday, August 13, 2022. Voters will receive their voting packets by July 26, and completed ballots must be received by voters county’s Election Division by election day, 7 p.m.
For our cover story this issue we feature three top Democrats in Hawaii’s governors race: Vicky Cayetano, Josh Green and Kai Kahele. Cayetano is the semi-political outsider in this race (married to former Gov. Ben Cayetano but not having served in public office). She has decades of business experience as an entrepreneur, is the former President of the largest laundry company in the state with over 1,000 employees. Cayetano is the only top Democratic candidate for governor with executive experience in the private sector.
Green is Lt. Governor, a former state senator, and a physician. He is leading in fundraising. Green is the only candidate for governor with executive experience in government.
Kahele is the U.S. Rep for Hawaii’s Congressional District 2, a former state senator, and a commercial pilot. He entered the governor’s race very late and politicos say he could have difficulty with fundraising. But Kahele already has name recognition and is taking a completely different approach to his campaign which is to accept donations no larger than $100, a truly grassroots campaign, some have said. Kahele is the only top candidate with experience serving in the Federal government.
There are other candidates but the HFC editorial board narrowed the list to the top three Democratic candidates, who were asked questions we’ve prepared on some of the popular issues facing our state. The Republican gubernatorial winner of the primary will be featured in the Hawaii Filipino Chronicle in a future article.
We know there are many major issues impacting our state but due to space we had to narrow the topics to those we believe are most pressing at the moment. Candidates answers to our Q&A have been edited for space and clarity.
VICKY CAYETANO, Democratic Candidate for Governor
Cayetano is the former President of United Laundry, PureStar Laundries, a company she built over 34 years. She was chairperson of the Chamber of Commerce of Hawai‘i in the late 1990s. She helped to establish the Hawai‘i Symphony Orchestra in 2011 to replace the defunct Honolulu Symphony Orchestra. She received numerous awards for business. She and her husband former Gov. Ben Cayetano established a scholarship fund to support students with the most needs.
Cayetano was born in Manila, Philippines. Her parents were Chinese immigrants who had moved to the Philippines to escape the famine that ravaged China during the 19th century. She studied business and economics at Stanford University.
HFC: The Hawaii Health Data Warehouse (working partners with various state departments, nonprofits and the University of Hawaii) released a report showing 42% of Hawaii households are ALICE (Asset Limited, Income Constrained, Employed) and below. There are 148,771 ALICE households (33 %), while another 41,619 households (9 %) live below the poverty level. That’s a large percentage of Hawaii households essentially living paycheck to paycheck. The biggest expense for ALICE residents in Hawaii is housing. What are your specific plans to improve Hawaii’s lack of affordable housing?
CAYETANO: Working with the legislature, my first act as Governor would be to proclaim a State of Emergency to accelerate the development of affordable homes. I will lead with a sense of urgency and work to enact policies that allow for expedited approval of construction permits, including accelerating housing projects taking place within the Department of Hawaiian Homelands.
My affordable housing plan contains three elements: 1) Rent-to-Own, 2) Designated Workforce Housing and 3) Affordable Rental Communities.
Rent-to-Own is aimed at those unable to make a down payment on the purchase of a home but could manage monthly payments. Under the Rent-to-Own plan, a tenant pays monthly rent which would function as a mortgage payment. Once the cost of the unit is reached with the monthly payments, the state would offer the tenant title to the unit.
Dedicated Workforce Housing begins with identifying under-utilized state lands to allocate affordable rentals and housing for three key sectors of our community – Healthcare, Education, and Emergency Response. Hawaiʻi has critical shortages in these professions and one of the key reasons is the lack of affordable housing.
Affordable Rental Communities will be family and kupuna friendly affordable rental projects that lend to a strong community environment.
HFC: COVID-19 exposed Hawaii’s economic vulnerability. For decades the state economy has relied on tourism, the military and construction with not much else in economic diversity (retail and services are mostly low-wage jobs). What are your specific plans to diversify the state’s economy?
CAYETANO: We cannot diversify the economy without first attracting businesses. This requires a more business friendly environment and a need to review the current business regulations. We cannot achieve food security without a prosperous agricultural industry. This requires investing in resources to help our farmers and ranchers. The Department of Land and Natural Resources and the Department of Agriculture must work in alignment to do this. Farmers and ranchers who are leasing state land from the DLNR need lease terms that are longer in order for them to make the appropriate investments. We must have a strategic approach at getting federal monies without compromising our local businesses.
HFC: Since the 1990s we have seen large out migration of Hawaii residents largely due to the high cost of living. Besides addressing affordable housing and bolstering the jobs situation (questions 1 and 2), what creative ways would you pursue to alleviate the high cost of living in Hawaii? For example, bringing down the cost of food? Or Healthcare? Or Childcare? You choose the area you want to focus on. This is a question specifically designed for you to show voters original, out-of-the-box thinking because we hear a lot from candidates about wanting change.
CAYETANO: I’m running for Governor for one simple reason – to help our children and grandchildren be able to afford to live and thrive here. As Governor, revitalizing and diversifying the economy will be my priority. It is time to shift from a tourism focused economy to a family-focused economy.
I have called for the immediate waiver of the GE tax on food, medicine and diapers for those earning less than $100K. I would also suspend the state gas tax of $0.16/gallon.
A cornerstone of my Family Focused Economic Plan is my call to establish a Community Reinvestment Plan – one that requires businesses over a certain size to contribute a certain dollar amount to Hawaii’s non-profit organizations in order to support the community from which the businesses profit. This creates a sustainable community.
HFC: Cost of doing business in Hawaii is still notoriously high. How do you plan to bolster small and middle size businesses in Hawaii?
CAYETANO: Small Businesses are suffering and being decimated. Many of them are local and family owned. As Governor, I would work with the legislature to introduce a lower tax rate for businesses that gross less than $5 million.
HFC: Describe the future of Hawaii’s tourism. Tell us what direction you would lead it.
CAYETANO: The plans that the community members from each county have put forward provide a pathway of regenerative tourism that I would ensure is acted upon.
HFC: Many have said Hawaii has a “play to pay” culture with regard to state government. Recently the corruption case against two Hawaii legislators have shaken public trust in government. How can you restore public trust in the business of government?
CAYETANO: I propose the following:
*Require disclosure for Introduction of bills.
*Outlaw the infamous practice of “gut and replace”.
*Enact term limits for the Legislature – Representatives (four 2-year terms) and Senators (two 4-year terms).
*Require that no legislator, governor, or lieutenant governor shall be a paid lobbyist for a period of four years after leaving office.
*Enact Campaign Finance Reform – disallow corporate and union contributions; lower the percentage of out of state contributions; prohibit political campaign fundraising during the legislative session; limit the ongoing accrual of campaign accounts and eliminate the ability to carry amounts over from one election to another.
HFC: Climate change is obviously real. Hawaii depends on its natural beauty to draw in tourists. What are your plans for preserving Hawaii’s environment and sustainability (two issues, but related)?
CAYETANO: As Governor I will take the following actions:
*Take the reports of the Hawaii Climate Change Mitigation and Adaptation Commission and put its recommendations into action with a planned timeline.
*Work with the counties to produce coordinated plans to shore up our infrastructure and lessen the impact on our island lifestyle from climate change.
*Restructure the Department of Land and Natural Resources that has had staff shortages for too long and, as a result, the management of our natural environment has suffered.
*Create a designated position specifically to secure grants-in-aid to manage sea-level rise and shoreline erosion, and all other climate change initiatives.
*Prioritize the critical maintenance of dams and reservoirs.
It is imperative to not only manage what is before you now, but to anticipate what science tells us.
HFC: What areas not mentioned above you would like to address that will be important in your administration?
CAYETANO: Diversity is a priority. It is important that the cabinet and administration reflects the diversity of Hawaii so we understand the communities we serve and the decisions we make which impact them.
HFC: Why should Hawaii’s Filipino community vote for you?
CAYETANO: I was born in Manila, Philippines and my family moved to this country when I was three years old. I understand the desire for wanting a better life for our families and giving back to our communities. I will use my business experience and knowledge to tackle the many challenges that we face with the urgency that is needed to get things done.
JOSH GREEN, Democratic Candidate for Governor
Josh Green is an ER doctor and Hawaii’s Lt. Governor. More than 20 years ago, he started caring for local families as a doctor in a small clinic on the Big Island.
He said after seeing the challenges many people faced, like the high cost of living, the lack of affordable housing, and the plague of addiction, he ran for office to help make a difference, serving in the State House and State Senate from 2004 to 2018.
In 2018, he became Hawaii’s Lt. Governor, and led the largest healthcare response in state history, pulling Hawaii together to vaccinate over a million people.
Green said he and his wife Jaime share the values of Hawaii — family and community, diversity, and a responsibility to future generations. They are the proud parents of 15 year-old daughter Maia and 11 year-old son Sam.
HFC: The Hawaii Health Data Warehouse (working partners with various state departments, nonprofits and the University of Hawaii) released a report showing 42% of Hawaii households are ALICE (Asset Limited, Income Constrained, Employed) and below. There are 148,771 ALICE households (33 %), while another 41,619 households (9 %) live below the poverty level. That’s a large percentage of Hawaii households essentially living paycheck to paycheck. The biggest expense for ALICE residents in Hawaii is housing. What are your specific plans to improve Hawaii’s lack of affordable housing?
GREEN: The biggest issue facing Hawaii today is a lack of housing that’s affordable and available to our residents. The cost of housing is the single largest monthly expense for Hawaii households and the lack of supply contributes to home prices that are unattainable for far too many. As Governor, I will make meeting our housing demand a top priority. My plan incorporates a multi-pronged approach designed to accelerate home production which include: fast-tracking of new home construction with a streamlined and common-sense regulatory process, increasing the amount of public land available for home development, and expanding home builder access to government financing and tax credits to accelerate the production of homes so we can provide enough supply to meet our demand sooner, not later.
HFC: COVID-19 exposed Hawaii’s economic vulnerability. For decades the state economy has relied on tourism, the military and construction with not much else in economic diversity (retail and services are mostly low-wage jobs). What are your specific plans to diversify the state’s economy?
GREEN: While the visitor industry, military, and construction industry remain the main drivers of Hawaii jobs and revenue, we must build a more diversified economy post-pandemic. Economic diversification is critical for several reasons: wages in emerging knowledge-based industries are usually higher than service-related jobs and diversification makes our economy more resilient in the face of an unpredictable future. As Governor, I will focus state efforts on fostering sustainable industries like renewable energy, environmental technology, and science-based innovation; revitalizing the agricultural sector through incentives; directing government infrastructure spending in ways that maintain key functions of a sustainable community; and growing partnerships between our educational institutions and the private sector to prepare Hawaii residents to compete economically for jobs.
HFC: Since the 1990s we have seen large out migration of Hawaii residents largely due to the high cost of living. Besides addressing affordable housing and bolstering the jobs situation (questions 1 and 2), what creative ways would you pursue to alleviate the high cost of living in Hawaii? For example, bringing down the cost of food? Or Healthcare? Or Childcare? You choose the area you want to focus on. This is a question specifically designed for you to show voters original, out-of-the-box thinking because we hear a lot from candidates about wanting change.
GREEN: We can do more to help working parents and keiki struggling today to live better lives. I believe every parent and child in Hawaii is entitled to three basic guarantees: 1) freedom from hunger, 2) a quality education, and 3) access to comprehensive healthcare and developmental screenings. This starts with improved nutrition programs in our schools so that more children can receive breakfast, summer meals, and after-school meals, a universal public Pre-K program to prepare keiki for success, and expanding mental health care services for children and teens.
HFC: Cost of doing business in Hawaii is still notoriously high. How do you plan to bolster small and middle size businesses in Hawaii?
GREEN: Two impactful strategies we can employ to help business in Hawaii is to identify ways we can streamline the regulatory burdens that local companies encounter in Hawaii and place more emphasis on the state prioritizing the purchase of goods and services from small and mid-size employers.
HFC: Describe the future of Hawaii’s tourism. Tell us what direction you would lead it.
GREEN: The tourism industry is a key economic driver for Hawaii, but it cannot come at the cost of our quality of life. We must address the effects of over tourism on our state by combatting illegal short term rentals and exploring changes to our tourism tax structure to balance visitors and the impacts they have on our natural resources. We should also begin the transition to a more sustainable visitor industry by promoting health, wellness, and eco-tourism.
HFC: Many have said Hawaii has a “play to pay” culture with regard to state government. Recently the corruption case against two Hawaii legislators have shaken public trust in government. How can you restore public trust in the business of government?
GREEN: As Governor, I will commit my administration to regularly engage Hawaii media so the people are fully informed on decisions made and the rationale for those decisions. I will appoint cabinet members of the highest ethical standards who are willing to be transparent not only about themselves, but in the way they make decisions.
HFC: Climate change is obviously real. Hawaii depends on its natural beauty to draw in tourists. What are your plans for preserving Hawaii’s environment and sustainability (two issues, but related)?
GREEN: Getting out in front of climate change starts with accelerating our transition to 100% clean energy and building our capacity for resilience for the years of climate change ahead. Simply put, we need to end our dependence on oil before it ends us. The islands provide the perfect laboratory for implementing a smart and achievable transition to clean energy. The lessons learned through this journey are something we can export across the globe. Hawaii is in dire need of a diversified economy and can use its transition to 100% renewable energy to create new, green jobs for future generations.
HFC: What areas not mentioned above you would like to address that will be important in your administration?
GREEN: Health care is a right and shouldn’t be determined simply by where you live or how much money you make. As Governor, I will focus my efforts on fixing our healthcare provider shortage, creating a comprehensive telehealth system be providing Universal health screening for our keiki.
HFC: Why should Hawaii’s Filipino community vote for you?
GREEN: I’m running for governor because Hawaii needs elected leaders we can trust — to tell us the truth, keep us safe and informed, to care about working families, and to be transparent and accountable to the people.
KAI KAHELE, Democratic Candidate for Governor
Kai Kahele is Hawaii’s congressmember for Congressional District 2, encompassing the neighbor islands and rural Oahu. He is a combat veteran, pilot and a commissioned officer in the Hawaii Air National Guard, and lieutenant colonel in the U.S. Air Force. Prior to Congress, Kahele was a member of the Hawaii State Senate.
HFC: The Hawaii Health Data Warehouse (working partners with various state departments, nonprofits and the University of Hawaii) released a report showing 42% of Hawaii households are ALICE (Asset Limited, Income Constrained, Employed) and below. There are 148,771 ALICE households (33 %), while another 41,619 households (9 %) live below the poverty level. That’s a large percentage of Hawaii households essentially living paycheck to paycheck. The biggest expense for ALICE residents in Hawaii is housing. What are your specific plans to improve Hawaii’s lack of affordable housing?
KAHELE: In addition to building more affordable housing, we need to protect the housing that we have, and ensure that local families have access to every possible tool to buy or rent a home that will provide the safety and security they deserve. This will require leadership, collaboration and an unwavering commitment to the people of Hawai‘i.
As Governor I would: build truly affordable housing in the areas that would thrive with greater density; bridge the divide between the counties and DoTax to enforce laws against vacation rentals and support a vacancy tax on unoccupied units; protect the security and stability of our working families by offering zero-interest and down payment loans to first-time homebuyers; build housing specifically for Native Hawaiians and public sector workers like teachers; and negotiate with the military to house more of their personnel on base.
The issue is not simply that there are not enough homes in Hawai‘i. Folks from around the world want to live here, and they have the means to pay (often above asking price). We need to start developing lawful ways to keep these homes in the hands of our working people.
HFC: COVID-19 exposed Hawaii’s economic vulnerability. For decades the state economy has relied on tourism, the military and construction with not much else in economic diversity (retail and services are mostly low-wage jobs). What are your specific plans to diversify the state’s economy?
KAHELE: Regarding agriculture, we need to actually empower the Department of Agriculture with a budget increase from .4% to 3% of the state budget. The DOA director and deputy director should be “outsiders” who have experience in agribusinesses and a proven track record of success. Beyond this, we need to increase the capacity of DOA staff to target federal resources, and propose an increase to CIP investments for the state’s agricultural processing facilities.
I also believe that we should focus on underperforming assets first. This includes the University of Hawai’i, which has the potential to add more to our economy. On average, over $500M in grants come into our state via the UH system. Through collective support and collaborative efforts across government, I believe we could increase this number by 10 times, allowing us to see $5 billion of inflow annually.
Further, technology and innovation have created entrepreneurial opportunities and new job markets. The federal government is making historic investments in broadband and digital equity. Hawai’i needs to capitalize on these federal dollars and ensure that all of our residents have access to high-speed, reliable internet, devices and digital skills training. We should not be encouraging folks from the mainland to come to Hawai‘i with their remote jobs, but supporting our residents to get those high-paying, knowledge-economy jobs.
HFC: Since the 1990s we have seen large out migration of Hawaii residents largely due to the high cost of living. Besides addressing affordable housing and bolstering the jobs situation (questions 1 and 2), what creative ways would you pursue to alleviate the high cost of living in Hawaii? For example, bringing down the cost of food? Or Healthcare? Or Childcare? You choose the area you want to focus on. This is a question specifically designed for you to show voters original, out-of-the-box thinking because we hear a lot from candidates about wanting change.
KAHELE: COVID-19 really showed us how important pre-k education and childcare is for our state. Working parents need more affordable options for their young keiki. And we know that pre-k education is instrumental in childhood development and setting our keiki up for success in their education and lives. On average, American families spend about $6,000 out-of-pocket annually, or about $500 a month, on child care and early education for their young children. Given our state’s high cost of living, that figure is certainly higher here in Hawaiʻi. That’s why I support the state’s efforts to achieve a universal pre-k program. Native Hawaiians and Filipinos make up nearly half of the public education system. Universal pre-k would be a monumental benefit to our communities, working parents, and our keiki.
This year, the State Legislature passed legislation, such as allowing the School Facilities Authority (SFA) to repair and maintain & build pre-k classrooms. They also passed Senate Resolution 7, which requested the Legislative Bureau to conduct a study on the feasibility of establishing a universal pre-k program. This report should be available before the end of the 2023 Legislative Session, and will provide a foundation on top of which the next governor can build a roadmap to executing such a program.
HFC: Cost of doing business in Hawaii is still notoriously high. How do you plan to bolster small and middle size businesses in Hawaii?
KAHELE: Small business is critical to job creation and stabilizing the economy post COVID. As your Governor, I will immediately convene a small business task force to provide recommendations on removing barriers to doing business, requiring local food products to be purchased by government agencies, analyzing our tax policies and removing the burdensome barriers to over regulation. As the only candidate with federal experience in Congress, I will supercharge our relationships with the federal government, the SBA and local banks to seek out and secure loans, grants and federal funds that can be used to help small startup businesses succeed. I will vigorously protect Hawaiiʻs marketing and brand and ensure that financial literacy and education are a cornerstone of government support to the small business community. Finally, I will pledge to you that I will appoint a business experienced individual to lead the Department of Business Economic Development and Tourism.
HFC: Describe the future of Hawaii’s tourism. Tell us what direction you would lead it.
KAHELE: Tourism will always be a substantial portion of our state economy. However, our environment and residents are being pushed to their limits. I believe by diversifying our economy, investing in emerging sectors, and focusing on the workforce development of our local people, we can begin to shift our local economies away from being so tourism dependent. We can implement green fees and reservations systems to mitigate and offset environmental damage. I am also proud that for the first time in our state history, Native Hawaiians will be taking the lead in deciding how Hawai‘i is marketed to the public.
HFC: Many have said Hawaii has a “play to pay” culture with regard to state government. Recently the corruption case against two Hawaii legislators have shaken public trust in government. How can you restore public trust in the business of government?
KAHELE: I launched my campaign with a 10 point plan to reform how campaigns are conducted in our state. I am proposing we supercharge public campaign financing, lower campaign contribution limits, cap campaign accounts across election cycles, prohibit corporate and union contributions, regulate bundling, ban in-session contributions, and institute term limits at the State Legislature. These steps will greatly increase our electorate’s ability to ensure their democratic vision for Hawaii is represented in our elected officials.
HFC: Climate change is obviously real. Hawaii depends on its natural beauty to draw in tourists. What are your plans for preserving Hawaii’s environment and sustainability (two issues, but related)?
KAHELE: Caring for our whole environment – our ʻaina, oceans, and coasts – is part of our culture. We must continue to take strides to ensure that critical parts of our environment are protected and conserved. I will continue the momentum of the state in conserving 30% of our coasts by 2030. I will also address environmental and watershed health across the entire pae ʻaina by working with the Department of Land and Natural Resources to address ungulate control and invasive species. Finally, to care for our whole environment, we must commit to generating 100% or our energy through clean, renewable means, on the fastest timeline possible. There is no time to waste. Our state has the opportunity to be recognized as a worldwide pioneer in the field of renewable energy, while at the same time benefiting our local communities and ensuring energy security across our future.
HFC: What areas not mentioned above you would like to address that will be important in your administration?
KAHELE: As a combat veteran pilot and officer in the Hawaiʻi Air National Guard, I will bring unique experiences & skill sets to the Office of the Governor. The United States and the Philippines have always had a strong relationship and partnership. With the new President Marcos, I want to cultivate that relationship and work together so our military & economic alliances remain strong. As an airline pilot with Hawaiian Airlines, I know how important air transportation is between Hawaiʻi and the Philippines. As your Governor I will work on re-establishing direct service between Honolulu and Manila in my first term.
HFC: Why should Hawaii’s Filipino community vote for you?
KAHELE: This election is about our families. I am blessed to have a Filipina wife (Maria Gorospe) who was born in Baguio and we have two Filipina daughters. My mother-in-law Eleanor is from Aparri in Cagayan & through this marriage we have a strong, vibrant, and loving Hawaiian & Filipino family.
