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OHA cuts The Office of Hawaiian Affairs has rescinded $7.7 million in grants and programs to keep OHA's budget below a new spending limit passed this summer.
$7.7 million
in funding
to meet limit
Chairman Hee praises 'a real
good first cut,' but trustee Machado
says affected groups did not
get a chance to comment firstBy Pat Omandam
Star-BulletinIt also set a deadline for other OHA appropriations to use the money before it is taken back.
A majority of the OHA interim board agreed yesterday to rescind $7,771,783 in appropriations, effective immediately. Trustee Colette Machado objected, saying that the parties who are losing the money did not have a chance to comment on how the action would affect them.
"I want to make it very, very clear that we failed to meet the beneficiaries -- even at the point where they could return a letter to us on how they felt about the rescindment," Machado said. "My guess is that they don't even know that this is occurring."
Funds immediately withdrawn were:
Also, the board reclaimed balances of $47,000 in OHA's education foundation budget and $53,000 for a vacant in-house budget planner analyst position.$6.4 million for the Hawaii Habitat for Humanity revolving loan program for self-help housing.
OHA Budget chairwoman Hannah Springer said the budget must not exceed $15.2 million in fiscal year 2001 to comply with the agency's 5 percent spending limit approved this August.
Machado said she was especially fond of the Kikala-Keokea project because the group had repeatedly come to the state Legislature and OHA to seek funding for infrastructure to resettle on land destroyed by a lava flow on the Big Island.
People there are angry and concerned about what will happen to families who have lots if they don't have the money to rebuild their community, she said.
Springer responded that the $1.2 million in funding was contingent upon matching funds from the state Department of Land and Natural Resources, but lawmakers failed to fund the program. Springer said the community can make a request again in the future.
OHA's native Hawaiian trust fund is at $375 million and can be used only for those who have 50 percent or more Hawaiian blood. The agency receives $2.5 million in matching general funds from the state so it can assist all those of Hawaiian ancestry.
OHA Chairman Clayton Hee explained that only about $100,000 a year is being drawn from the $6.4 million appropriation for the self-help housing program.
He added that Hawaii Habitat for Humanity is reworking its policies and procedures, and conducting an audit to address problems with the program.
The board, Hee suggested, could consider another request from the program in the future. He stressed the removal of funding does not affect self-help projects on Hawaiian homelands, which are funded under a different program.
Meanwhile, the board decided appropriations of $14 million to 16 other programs must be used by June 30, 2001, or the balance will be rescinded.
Another $1.1 million given to two other programs must be spent by June 30, 2002.
Hee praised the board for its quick action, especially since the appointed trustees have less than two weeks remaining in office. Hee said budget adjustments to comply with OHA's spending policy are a work in progress that will have to be continued by the next board following the Nov. 7 elections.
"I think you folks have done a real good first cut," Hee said.
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