How has the State's moves on ACT 221/ SB199 already affected your company?

Comment

Comment by Bruce M. Bird on July 25, 2009 at 8:08pm

Hi, Peter.

You wrote: "Those that feel tech industry will "flourish" must clearly be referring to a return to the "flourishing" tech in the '80s & '90s, which is a far, far cry from where tech went after 221 did its magic."

Your comment seems to imply that the rate of technological growth in Hawaii during the period 2001-2009 (with Act 221) will return to the rate of technological growth in Hawaii in the 1980s and 1990s (without Act 221). That doesn't doesn't make much sense to me.

You wrote in your most recent post: "Are you saying our high tech industry's rate of growth in the 221 years was the same as it was in 80s & 90s?"

My point was that the rate of technological growth has been much, much greater during the period 2001-present day almost everywhere in the U.S. --and in most of the world-- than it was in those places during the 1980s and 1990s. By the way, those places --other than Hawaii-- didn't have Act 221 in place but yet they also experienced technological growth. I hope that answers your question.

Also, you keep referring to the "magic" of Act 221. if you get the chance, you might want to read about Bastiat and the Broken Window fallacy.

Comment by Peter Kay on July 19, 2009 at 9:13pm

Bruce, I think you're blending the ideas of high tech in our life vs. a flourishing high tech industry. Are you saying our high tech industry's rate of growth in the 221 years was the same as it was in 80s & 90s?

Comment by Peter Kay on July 19, 2009 at 9:11pm

Laurence,

I re-read my original statement after the veto and you certainly extrapolated alot from a single statement of "gov didn't get it". How that's a personal attack or blame for misguided anger is a long reach, at best.

There was a lot of behind the scenes lobbying, more than any year I can recall (in regards to high tech). Clearly though, it was unsuccessful.

I hope in future years you'll get more involved to help the process long.

Comment by Bruce M. Bird on July 16, 2009 at 4:04pm

Hi, Peter. You wrote: "Those that feel tech industry will "flourish" must clearly be referring to a return to the "flourishing" tech in the '80s & '90s, which is a far, far cry from where tech went after 221 did its magic."

The word "flourish" means to "thrive" or "prosper". Technology is a greater part of of our life now than it was 5 years ago, 5 years ago than 10 years ago, and 10 years ago than 20 years ago. This is the case whether you live in Hawaii or not. Or whether Act 221 applies to your investment or not. Your attributing the growth of technology in Hawaii to the "magic" of Act 221 --while implying that Hawaii might return to the tech levels of '80s and '90s without Act 221-- seems to ignore the march of technology over time.

Comment by Laurence A. Lee on July 16, 2009 at 2:32pm

Peter,

By "personalizing", I mean the tendency to single out the Governor as the Sole Being responsible for the outcome of SB199. Certainly, SB199 was terrible legislation that should never have gotten as far as it did.

Where were the High Tech Lobbyists, Watchdog Groups, and Town Criers when the "highly destructive" version SB199 was making progress on the floor? Were they sleeping on the job? Were they ineffective at rallying the High-Tech Masses?

How many "on the fence" Legislators should have been identified and courted earlier in the process to stop SB199 dead in its tracks? I find it hard to believe that the Legislature is comprised of a bunch of Pono Chongs.

SB199 is a setback, I agree, but blaming the Governor is somewhat misguided anger. It's my opinion that she did "get it" and she does understand the damage caused; and that her decision was forced by current economic conditions. By letting it through without signature is at least a symbolic gesture that she was not in favor of SB199.

Comment by Peter Kay on July 16, 2009 at 1:54pm

Laurence, not sure if you're referring to my post when you talk about personalizing the issue. There's nothing personal here, any more than I'm sure your attack on Mufi's policies aren't personal. It's my opinion that the Governor did not fully understand what damage that SB199 has already done and will continue to do to the tech community.

The revenue issue is a straw man. The tech industry supported a different version of SB199 that addressed revenue shortfalls via caps but that was rejected and instead this "I'm changing the deal, pray I don't change it any further" destructive version was put in place.

The Governor even floated the idea that she could veto the bill with suggested changes to address revenue shortfalls, something that she said had never been done before.

But this didn't happen. This veto was a choice about our future and the message was clear: tech is a nice buzzword but when economic diversification threatens the status quo, shut it down.

When you pile this bill alongside issues like SuperFerry, I can't think of any clear-thinking investor that would look at Hawaii and seriously consider taking any multi-million dollar risk, unless of course it's invested into tourism or real estate.

Those that feel tech industry will "flourish" must clearly be referring to a return to the "flourishing" tech in the '80s & '90s, which is a far, far cry from where tech went after 221 did its magic.

Comment by Bruce M. Bird on July 16, 2009 at 1:31pm

Hi, Laurence. I always enjoy reading your posts.

I thought that Governor Lingle would veto SB 199 (but was wrong). To me, it would have made sense for the Governor to have vetoed this legislation assuming that the Legislature would have overridden it. While this may seem counter-intuitive, the Governor would have scored political points with the Tech Sector without the added "cost" of foregone revenue .

In any event, it can't be much fun running a state government at a time in which revenues are steadily declining.

I agree with you that Technology will continue to flourish in Hawaii. It's nice to know that there are many members of the High Tech community in Hawaii who look inward when dealing with the challenges they face.

Comment by Laurence A. Lee on July 16, 2009 at 12:07pm

It amazes me that so many in the Tech Sector want to personalize this SB199 issue and attack the Governor. However, I'm not at all surprised at Duke scavenging an opportunity to posture before the Media by voicing dissent.

The fact that Lingle put SB199 on the list of items that could be potentially vetoed, combined with her effort to seek counsel from Technology Insiders, is a clear demonstration that she does in fact "get it".

Lingle is faced with the daunting task of closing a $350M/yr shortfall over the next 2 years. Hawaii's State Legislature didn't help matters by overriding a load of bills vetoed to cut costs. With HGEA and UPW playing "hardball" in the courts and in the Media, Lingle has the unenviable job of closing the budget gap by making tough decisions -- decisions that will obviously upset those on the losing end.

From where I sit, it's a very tough sell to veto SB199, which would have cost the State $75M/yr in High-Tech Tax Credits -- especially when she's been asking Government Workers to take a 15% pay cut, and when she attempted to veto the Low-Income Child Healthcare program.

Also, keep in mind, Lingle has been trying very hard to resist Tax Increases in order to close the gap. I applaud and commend this stance. Unlike weak-minded "leaders" like Mufi Hannemann, for example, who happily raised Property Taxes to close the City's shortfall. And we're still going forward with his $12 Billion "Crazy Train" to Nowhere. Mufi for Governor? Only if we all want to be taxed to death.

While SB199 is a setback, Technology will continue to flourish in Hawaii. If anything, this setback will accelerate our current period of Consolidation. Economic Darwinism will prevail, and Hawaii will be better for it when this recession finally turns around.

Comment by Peter Kay on July 15, 2009 at 11:49pm

Well as you may know by now, the Governor allow sb199 to become law. We tried really hard at that meeting to communicate our concerns. Apparent the Lt. Gov got it, but the Gov did not.

Oh well, it was really, really cool to see a high tech industry flourish in Hawaii. Lets see what happens from here.

Comment by Peter Kay on July 8, 2009 at 7:44pm

Thanks Dan. Ooi's plight was brought up. Good luck to you and if appropriate I'll bring this up.

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