Because of the budget, the state was able to maintain pension benefits for our retirees, according to the governor.

Abercrombie said,"For the record: This is not Wisconsin. This is not Michigan. This Administration is not going to abandon collective bargaining, but neither will it bankrupt the future for all by buying some temporary solution that does not address the fundamental fiscal issues we cannot escape."

The governor also said, as of July 1, the five percent pay reductions will end for state workers and full pay will be restored.

Lt. Gov. Shan Tsutsui was put in charge of continuing to invest in the economy via construction and repair and maintenance projects and public-private ventures.

Gov. Abercrombie also took time to honor the late Sen. Daniel Inouye.

"For many of us, we have never known a time when Senator Inouye was not the center of our political life. But while his physical presence may no longer be with us, the spirit of his example of public service sets an unmatched standard we can only aspire toward," said Abercrombie.

The governor said it's time to pay back the Hurricane Relief Fund and the Rainy Day Fund.

Gov. Abercrombie second topic focused on energy.  He says with the departure of Tesoro Corp., Hawaii will only have one oil refinery and we will be importing the rest.

"We face greater exposure to the events occurring elsewhere in the world that affect our fuel pipeline – whether in the Middle East, Asia, on the seas, or at Mainland refineries and ports," said Abercrombie.

So, the governor is creating the Hawaii Refinery Task Force -- 27 interested stakeholders from various levels of government and the private sector to work on short-term and long-term findings due to Tesoro's closure.