Appropriates $680,000 to support the statewide economic development program of the Hawaii small business development center network.

A BILL FOR AN ACT

SECTION 1. 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.

The Hawaii small business development center network creates a sustainable economy by providing consulting and training to existing small businesses and new ventures. The Hawaii small business development center network provides consulting and training to more than two thousand businesses annually, helping them to succeed and expand. The Hawaii small business development center network is the only statewide business assistance organization in Hawaii. It is a matching-funds, partnership program that is administered by the University of Hawaii and partially funded by the United States Small Business Administration, the University of Hawaii at Hilo, and a consortium of other federal, state, and private-sector sponsors and partners.

Management-force training promotes improvements in the conditions under which small businesses thrive. The Hawaii small business development center network has the experience to deliver such training, having provided management-force training statewide since 1990.

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

The purpose of this Act is to appropriate moneys to the Hawaii small business development center network to further its work of providing assistance to small businesses through management-force training.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $680,000, or so much thereof as may be necessary for fiscal year 2006-2007, to expand management-force development through consulting and training services at the small business development center as follows:

The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2006.