$1.8 Billion Advanced to Fix State Infrastructure, Stimulate Economy

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    Report by Russ Saito, state comptroller

    HONOLULU – Governor Linda Lingle today announced that the State has advanced more than $1.8 billion in capital improvement projects (CIP) statewide, exceeding the original goal of the Lingle-Aiona Administration’s plan launched in December 2008 to accelerate public infrastructure construction as part of a comprehensive effort to stimulate the economy and create jobs.  Over the past 17 months, the State has successfully opened bids for, awarded contracts for or started construction on 827 capital improvement projects totaling $1,851,513,340.

    The original 18-month plan focused on 1,500 capital improvement projects totaling $1.8 billion which were previously budgeted and approved by the Legislature.  While the State has focused on these 1,500 projects, the State has expanded its plan to include 2,470 construction projects, totaling $4,621,269,610.

    “We remain focused on working collaboratively with the construction industry, trade unions and counties to help revitalize our economy and create jobs,” said Governor Lingle.  “This comprehensive and aggressive capital improvement plan is a key component of moving our state forward, and investing in the modernization of our public infrastructure, buildings and facilities.”

    The State estimates the $1.8 billion in capital improvement projects has generated approximately 23,884 direct and indirect jobs statewide in the construction industry and other related sectors.  This is based on a Department of Business, Economic Development and Tourism formula which estimates that for every million dollars invested, 12.9 direct and indirect jobs are created.

    The number of direct construction jobs created by the capital improvement projects is approximately 5,554.  This is based on a formula used by the construction industry which estimates that for every million dollars, three direct construction jobs are created.

    Projects Advancing by Department# of Projects/ Cost

    Department of Accounting and General Services        161        $225,923,212
    Department of Agriculture        8        $16,888,465
    Department of Business, Economic Development and Tourism        5        $11,980,233
    Department of Defense        6        $4,036,800
    Department of Education        375        $269,181,928
    Department of Hawaiian Home Lands        26        $164,944,751
    Department of Human Services        31        $53,086,441
    Department of Land and Natural Resources        47        $67,357,085
    Department of Transportation        82        $789,471,682
    University of Hawai‘i        86        $248,642,743
    Total        827 $1,851,513,340

    Projects Advancing by Island/ # of Projects /Cost
    O‘ahu        491        $978,295,682
    Hawai‘i        149        $431,665,970
    Maui        100        $283,318,510
    Kaua‘i        53        $108,063,444
    Moloka‘i        21        $17,166,085
    Lāna‘i        9        $16,398,233
    Statewide projects        4        $16,605,416
    Total        827 $1,851,513,340

    Investing in capital improvement projects and the modernization of Hawai‘i’s infrastructure is a major part of the Governor’s five-point action plan to stimulate the economy. Other components of the five-point plan include increasing tourism marketing and outreach; lowering business fees and providing tax relief; attracting private investment, especially in renewable energy technology; and maximizing federal dollars and partnerships.

    Progress of all the capital improvement projects can be tracked on the Governor’s website at www.hawaii.gov/cip.

    Report by Russ Saito, state comptroller
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