Hawaii
Hawaii is America's Worst State for Business in 2024, with off-the-charts costs and climate risks rising
An aerial image taken Aug. 10, 2023, shows destroyed homes and buildings burned to the ground in Lahaina in the aftermath of wildfires in western Maui, Hawaii.
Patrick T. Fallon | Afp | Getty Images
First came the Covid-19 pandemic, striking at the very heart of Hawaii’s economy.
Then, just as the state was beginning to recover, came last summer’s deadly Maui wildfires, which killed more than 100 people, destroyed upward of 2,000 structures, did $5.5 billion in damage and paralyzed the state’s tourism industry yet again.
Finishing last in CNBC’s 2024 competitiveness ranking, America’s Top States for Business, seems pretty minor in comparison to all of that. But Hawaii’s economic issues go even deeper than the high-profile tragedies that have befallen the state.
Consider the Honoapiilani Highway.
Hawaii Route 30 hugs the western shore of Maui. Well before the fires, state transportation officials warned in a 2021 report about climate risks that the highway was at risk from rockfalls, landslides, flooding from high waves, storm surges, coastal erosion and even tsunamis. Already, portions of the road frequently close due to flooding.
“Given our understanding of what is changing, we need to make some tough decisions to ensure the long-term viability of the State,” the report said.
A sign is posted warning of earthquake damage to the road from seismic activity at the Kilauea volcano on Hawaii’s Big Island, in Hawaii Volcanoes National Park on May 17, 2018.
Mario Tama | Getty Images
Hawaii was never going to do well in a competitive ranking that emphasizes infrastructure, as this year’s does. The state is remote — 2,400 miles from the mainland — and as an island chain, basic infrastructure features that are important elsewhere, such as freight rail, are irrelevant. But now, even the infrastructure the state does have is under threat, such as the Honoapiilani Highway.
“That’s the only link to the rest of the island from the area where the wildfires were,” said U.S. Secretary of Transportation Pete Buttigieg, who visited Hawaii in February.
The state is set to receive $2.8 billion under the Bipartisan Infrastructure Law, and nearly half of it will go toward rebuilding bridges and roads. Some $160 million of that will go toward relocating portions of the Honoapiilani Highway.
“We’re funding them to raise that highway to higher ground,” Buttigieg told CNBC. “We’re not going to make somebody build a road the exact same way if it’s getting washed out year after year by what used to be a once-in-100-years event.”
In an aerial view, cars back up for miles on the Honoapiilani Highway as residents are allowed back into areas affected by the wildfire, in Wailuku, Hawaii, on Aug. 11, 2023.
Justin Sullivan | Getty Images
It will be at least 2027 before the improvements are complete, transportation planners say. Add the many other roads and bridges needing help, and it begins to explain why Hawaii’s infrastructure ranks No. 47 in this year’s Top States study.
The high cost of paradise
Hawaii is also America’s most expensive state to do business in, with the third-highest cost of living. Residents and businesses pay the nation’s highest utility costs, and corporate and individual taxes are high.
With so many inherent disadvantages, why doesn’t Hawaii finish at the bottom of the rankings every year? The answer, in part, is because it’s Hawaii, with a legendary quality of life. But now, even that is under siege.
Hawaii ranks No. 7 for Quality of Life in 2024, its lowest ranking in the important category since our Top States study began in 2007.
It is not that Hawaii isn’t still a paradise. But even in a paradise, working families need child care.
While licensed child-care facilities are readily available in Hawaii, they are prohibitively expensive. According to Child Care Aware of America, child care in Hawaii costs 18% of the median income for a married couple. That is the most expensive in the country, and nearly twice the national average.
Multiple studies have linked quality child care and preschool to economic competitiveness.
In 2022, the Hawaii legislature approved $200 million in spending for new prekindergarten classrooms, part of a broader goal championed by Lt. Gov. Sylvia Luke to offer universal pre-K for three- and four-year-olds in the state by 2032.
A family walks on the beach together during sunset in Kauai, Hawaii.
Fly View Productions | E+ | Getty Images
“Access to preschool is a social justice issue for Hawaii,” Luke said in a statement at the time. “Children who have attended high-quality preschool or child-care programs are much better prepared for success in kindergarten, but not every family has access to early learning programs.”
The plan was to build 80 new classrooms by this August, with ambitious annual goals after that. But according to a website for the program run by Luke’s office, the program is already falling short of its goals. Two years after the bill was passed, only about half the money has been spent. Just 13 classrooms have been built, with another 50 under construction. The physical facilities are just part of the battle. Hawaii also faces a serious shortage of child-care workers.
An economy struggling to rebound
Put it all together, and it leads to America’s second-worst economy, according to the Top States study, after Mississippi. It is little surprise that no major companies are headquartered there. Economic growth was modest last year as the state struggled to recover from the wildfires, and job growth was meager at best.
In their most recent quarterly economic outlook, published in June, forecasters with the state’s Department of Business, Economic Development and Tourism predicted that tourism will end the year flat following a 4% drop in the first four months of the year, largely due to the wildfires.
They do expect visitor traffic to bounce back next year, and to continue growing — albeit at more modest levels — through 2026.
But in America’s Bottom State for Business, they have learned the hard way that Mother Nature can have other ideas.
Hawaii
An eclectic, off-grid Hawaii haven, 3 dead men and a suspect caught on surveillance video
HONOLULU (AP) — For residents of Puna, a remote and eclectic part of Hawaii’s Big Island, the killings of three men known for embracing the community’s off-grid, free-spirited lifestyle became a startling reminder of its struggles too.
Nearly 24 hours after Jacob Baker was arrested, residents were struggling to understand what happened and were eager for answers on why authorities zeroed in on the 36-year-old as their suspect in the killings of the men who were all nearing or in their 70s.
Baker remained jailed on suspicion of murder, burglary and other charges.
Court records show Baker having repeated run-ins with police for a variety of offenses. And people who live in Puna told The Associated Press that their concern about Baker in recent days accelerated, portraying him as increasingly threatening.
Baker is accused of being involved in the deaths of three men: a 69-year-old man found partially submerged in a cement pond, a 79-year-old man who was found just a few hundred feet (meters) away, and a third man, also 69, whose body was found about 19 miles (31 kilometers) away. As of Friday, prosecutors had not yet filed charges.
Police identified the first victim as Robert Shine and the third victim as John Carse. The name of the 79-year-old man was pending positive identification but friends identified him as Chitta Morse.
Hawaii Police Chief Reed Mahuna said investigators had not found any connections among the victims, other than two of them lived near each other.
Fixtures at drum circles
Friends of Shine and Morse say the men moved to Puna for its off-grid, tropical and communal lifestyle.
Shine enjoyed dancing and swaying to the beat at drum circles, usually on Sunday afternoons, said Donald Hyatt, a drummer.
Hyatt last saw Shine at a party last month. A local rock-and-roll band was playing and Shine was dancing around.
“He was dancing like he loved life,” Hyatt recalled. “Bob had a permanent smile. Always in good spirits.”
Morse moved from Van Nuys, California 40 years ago “to live off-grid and to live in a warm tropical place, and to eat fruit,” said friend Jezuz Cinderland. “For 40 years he only ate raw food. Since he got to the island he just went completely raw and this was just the right environment for him to do it.”
On land rich with volcanic soil on Papaya Farms Road, Morse had what Cinderland called a “fruit forest,” growing things like coconut, avocado and durian.
“He would just share all the fruit he had,” Cinderland said. “The most fabulous abundance that you can imagine.”
While Morse had previously been a member of the raw-food commune Cinderland moved to Puna to join, in recent years Morse was a loner, Cinderland said.
Shine was a member of Cinderland’s commune, which has been shuttered by the county for various code violations, Cinderland said.
Work-trade life
Janelle Honer, who also grew fruit on Papaya Farms Road, seems to be what connected Baker to the men, who often attended pot luck dinners and parties on Honer’s property.
Baker had been living on Honer’s property in exchange for climbing and trimming coconut trees, her ex-husband, Stephen Shaffer said. Trading work for living accommodations is common in Puna.
Hyatt said Baker left the cabin he was living in on Honer’s property months ago but returned recently claiming “squatter’s rights” and threatened Honer. Hyatt said he urged her to seek a restraining order.
The slayings happened just days after two women requested temporary restraining orders against Baker, saying he had threatened and harassed them at a farm. One woman was staying there and the other co-owned it. A judge denied both applications, saying there was not enough proof of harassment.
No attorney was listed for Baker, who had 20 other cases in the court record in the past two decades, many of them traffic infractions. In most of those cases, Baker represented himself.
Honer, who Shaffer said was traveling out of the country, couldn’t be reached for comment.
A memorial for the men was planned for Saturday next to Honer’s place.
Puna is one of the few places in Hawaii where there’s affordable land, and the area’s infrastructure hasn’t kept up with its growth, said Ashley Kierkiewicz, who represents Puna on the county council.
While Puna has a reputation as a quirky frontier, it’s also a place rich in culture where people are resilient and lean on each other, she said.
Puna, with its landscape that’s a mix of lush jungle and barren lava-rock fields, also struggles with drugs, poverty and limited resources, said longtime resident Tiffany Edwards Hunt.
“People have this mistaken impression that they can come to Hawaii and heal,” she said. “Hawaii can either really be kind to you or it can chew you up and spit you out.”
Surveillance cameras aid capture
Mark Wyatt and Richard Valdez played a key role in Baker’s capture, calling the police when their surveillance camera system pinged Valdez’s phone and it showed Baker on their property on Thursday. Their property is about a half-mile from Carse’s home, but they didn’t know him well.
The videos show Baker, shirtless and barefoot, with a dog walking near a road and getting down on the ground as cars went by, in an apparent attempt to avoid being seen.
“He was ducking from the traffic, so it was pretty obvious” that he was trying to avoid being found, Valdez said.
Authorities arrested Baker a short distance away after finding him in a small cave, police said.
Wyatt said he believed Baker had been hiding near his property in a small, makeshift camping spot over a bluff overlooking the ocean. He said Baker stole couch cushions from a container outside his home and some charcoal, and Baker used coconut tree palm fronds to cover the site.
Valdez said he hadn’t seen Baker in about two years. Back then, he said, Baker was living next door to them, renting space from their neighbor while trimming coconuts from trees and selling them just off the area’s main road. He lived next door for about six months, Valdez said.
“He told me he was from Maui and that he had just had a newborn baby and his girlfriend had left and that he was trying to get his life together,” Valdez said. “So he seemed pretty normal and conscientious, so it’s hard to fathom that this happened.”
___
Collins reported from Hartford, Connecticut.
Hawaii
Manitowoc-built crane sets sail for Navy base in Hawaii
MANITOWOC (WLUK) — A 200-foot Manitowoc-built crane is on its way to a Navy Base in Hawaii.
Big Blue P-82 sailed out of the Manitowoc Harbor Friday morning to Navy Joint Base Pearl Harbor-Hickam on the island of Oahu.
Manitowoc Mayor Justin Nickels posted a bon voyage post to social media, reading in part:
Pearl Harbor is where America’s involvement in World War II began — a moment that changed the course of history. And it is altogether fitting that Big Blue now heads to that very place, because Manitowoc played a defining role in that same war effort. Right here on the same peninsula where Big Blue was built, the people of Manitowoc constructed 28 submarines that helped secure victory and defend freedom around the world. That legacy of ingenuity, patriotism, and hard work is still alive today. The men and women of this community continue to build big things — important things — that support our nation and strengthen our future. Their skill and dedication are part of a story that spans generations. We’re proud of Big Blue, proud of those who built it, and proud of Manitowoc’s enduring place in American history. Safe travels, Big Blue; from a city that helped win a war to the harbor where it began, we wish you fair winds and following seas
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The crane will make the 7,600 to 7,800 nautical mile journey from the Manitowoc Harbor through the St. Lawrence Seaway, down the East Coast of the U.S. before going through the Panama Canal to the island of Oahu.
Hawaii
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