School board votes state librarian
out, 7-6, at end of June

By Debra Barayuga
Star-Bulletin

The Board of Education voted 7-6 early this morning to drop Bart Kane as head of the Hawaii State Public Library System.

Kane, director of Hawaii's 49 libraries for the past 16 years, will keep his job until June 30.

After this morning's vote, board chairwoman Karen Knudsen thanked Kane on behalf of the board for his years of service and wished him well.

The board's decision comes just two days after schools superintendent Herman Aizawa announced his decision to step down in June, saying he could not continue without a contract.

The board soon will begin a search to find replacements for both department heads.

This morning's decision stunned a group of librarians -- Kane's most vocal critics -- who stayed until just after 1 a.m., when the board emerged after nearly an hour of discussion behind closed doors.

The librarians clapped briefly after the decision was announced, then quietly gathered their belongings and left.

The board looked at Kane's many years of accomplishments and contributions as well as growing concerns that could not be overcome, Knudsen said.

"We all grappled with this for a number of months. There was a sense of needing to move on. He'll be a hard act to follow, but I don't think there will be a lack of potential applicants," she said.

The board will put together job descriptions soon for both the superintendent's $90,000 a year post and state librarian's job, which pays $85,000.

"We're very pleased the board acted responsibly," said Al Wickens, newly elected president of the Librarians Association of Hawaii.

The board in July gave Kane six months to fix problems caused by the Baker & Taylor book-buying contract, develop an acquisitions plan following the cancellation of the contract, improve communications with employees, and give them an opportunity to provide input on decisions that directly affect their work.

"I felt that I accomplished the four expectations they set out," Kane said. "I'm sad and disappointed I won't be state librarian come July 1st."

Kane said he was not surprised at the outcome, but was not expecting it either. He said he recognized the board members had made a difficult decision.

Voting against retaining Kane were board members Winston Sakurai, Keith Sakata, Noemi Pendleton, Ron Nakano, Karen Knudsen, Kelly King and John Compton.

Voting to keep him were Herbert Watanabe, Garrett Toguchi, Mitsugi Nakashima, Francis McMillen, Denise Matsumoto and Lex Brodie.

Before the meeting, Kane's critics stood outside the packed Holomua Elementary cafeteria and quietly demonstrated.

The signs they carried spoke volumes. "Kane Fire," "Still no confidence," "Where's the accountability?" and "BOE wasting taxpayer's money."

Strung across a makeshift clothesline hung paper cutouts of "Bart's Dirty Laundry" -- a list of the criticisms repeatedly raised last year by library employees and the public.

Of 18 people who testified about Kane, two backed him.

Hawaii is undergoing a period of extreme change, with Kane surviving more change than most have experienced over the past six years, said Kane supporter Jack Harmon.

"We're going to need more people with innovation and vision to lead us out of the morass we're in."

Kane's critics renewed their call for his ouster, saying his hasty decisions and reckless disregard for state law resulted in lawsuits that will cost taxpayers thousands of dollars.

A Supreme Court ruling in August and the recent state auditor's report on the management of the public library system point to a leader who acted recklessly and "in bad faith," critics said.

Kane transferred funds improperly, audit says By Debra Barayuga Star-Bulletin State Librarian Bart Kane improperly transferred library money to the state's general fund and to pay book supplier Baker & Taylor, according to an auditor's report released today. The money, from two special funds, was supposed to be returned to individual libraries, the auditor said. Instead, Kane used nearly $2 million from both funds to pay Baker & Taylor to purchase books for Hawaii's 49 public libraries. He also transferred $500,000 from the enhanced services special fund to the state's general fund during fiscal years 1996 and 1997. The findings are included in a financial report of the Hawaii State Public Library System prepared by the state auditor. The Board of Education had postponed Kane's annual evaluation earlier this month pending the release of this report. They recently received draft copies. Today, the board voted not to retain Kane as head of the library system. A Supreme Court ruling last year and the state auditor's management audit released last month raised concerns over Kane's management style and decision-making. Reforms that may have been well-intentioned were poorly planned with no meaningful input from employees, causing a high level of dissatisfaction among workers, the auditor said. In the latest audit, KPMG Peat Marwick LLP examined the library system's financial records from July 1996 to June 1997. The firm found that Kane disregarded state laws involving the library's fund in which fines for overdue materials are deposited, and another fund into which fees for video rentals, photocopying services or library card replacements are collected. State auditor Marion Higa raised the same concerns about the transfers in the management audit. The money in both funds was supposed to return to the libraries, but none went back, Higa said. "The state librarian misrepresented that these moneys would go back," the auditor wrote. In annual reports to the Legislature on the revenues and expenditures from these two funds, there were no indication that the funds were used to pay Baker & Taylor, nor transferred to the general fund, she said. "The way the information was presented was in terms of allocation to the library to the penny." Also, the amounts shown to have been allocated weren't available at the time the report was made, Higa said. Whatever was left in the fund was paid to Baker & Taylor, which had a contract to select and supply books for the libraries. "There was no hope the libraries would get their money." By law, transfers can be made from special funds to the General Fund provided they are in excess of the fiscal year requirements for such special funds. The funds Kane transferred did not apply, since none had been given to the libraries in the first place, Higa said. "Our main concern is the moneys didn't go back to the libraries," Higa said.