Appropriates funds to support the statewide economic development program of the Hawaii Small Business Development Center Network.

A BILL FOR AN ACT

SECTION 1. The legislature finds that a sustainable economy is one that integrates long-term economic growth, environmental quality, and social fairness. Sustainable economic development is important to establishing a firm economic foundation in Hawaii, especially in the small business sector. However, in 2004 Hawaii's small business sector once again has received a grade of "F" from the Corporation for Enterprise Development. This is the tenth out of eleven years Hawaii has received a failing grade. Per capita personal income for Hawaii has declined from a high of one hundred fifteen per cent of the united states average in 1993, to 97.7 per cent in 2003.

The Hawaii Small Business Development Center Network promotes a sustainable economy by providing consulting and training to existing small businesses and new ventures, helping them succeed and grow. It also maintains a small business research library that responds annually to more than one thousand two hundred inquiries from small businesses for critical information. The Hawaii Small Business Development Center Network is the only statewide business assistance organization in Hawaii. The Hawaii Small Business Development Center Network provides consulting services and training to more than two thousand businesses annually, and has provided services in Hawaii since 1990. It is funded through matching funds and partnership programs by the U.S. Small Business Administration, the University of Hawaii at Hilo, and a consortium of other federal, state, and private sector sponsors and partners.

The legislature further finds that an investment in human capital will produce residual benefits that will lead to real, sustained growth and high productivity. Funding will generate approximately $29,000,000 in annual economic impact. This projection is based on an independent study completed in 2004, The Annual Economic Impact of the Hawaii Small Business Development Center. According to the study, for every dollar the State invested, $4.45 was returned to the State in new, incremental taxes through new job creation, safeguarding existing jobs, and sales increases. For every $1,175 the State invested in the program, the Hawaii Small Business Development Center Network created a new job or saved an existing job.

The purpose of this Act is to appropriate moneys to the Hawaii Small Business Development Center Network to advance its work of helping small businesses grow through management-force training.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $584,000, or so much thereof as may be necessary for fiscal year 2005-2006, for expansion of management-force development through consulting and training services at the Hawaii Small Business Development Center Network as follows:

SECTION 3. The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2005.