Cayetano backs
probe into
Felix spending

He says it is needed to address
possible conflicts of interest

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Richard Borreca
rborreca@starbulletin.com

Gov. Ben Cayetano said yesterday the Felix consent decree has "built-in conflicts," and he supports the legislative investigation into how the state has been spending $1.4 billion to be in compliance with the decree.

In an informal meeting with reporters yesterday, Cayetano added that officials from his administration will testify before the special legislative committee investigating the expenditures.

He said the investigation is needed and will answer questions about the possible conflicts of interest of persons who have been diagnosing Hawaii's special-education students and then performing the treatments they recommended.

"I think what the Legislature is doing is appropriate. I really believe it is part of their duty to look into how these expenditures are being spent," Cayetano said.

"We have had questions about the structure which allows experts -- psychiatrists or psychologists -- to diagnose services and then provide the services," the governor said. "Those are built-in conflicts that we need to take a good look at."

The consent decree was the result of a lawsuit claiming that the state was not fulfilling its obligations to special-needs students in public schools.

Cayetano's support for the investigation was welcomed by legislative special committee co-chairs Sen. Colleen Hanabusa (D, Waianae) and Rep. Scot Saiki (D, McCully).

"I'm pleasantly surprised. When we first started, he was very cautious," Hanabusa said. "I am very glad that the governor is in support. I believe it must be raising some questions (for him) as it is for us."

A key item of the investigation is state Auditor Marion Higa's allegation that Ivor Groves, the court-appointed special monitor for the decree, is also a provider of services in the compliance effort.

Higa said Groves is part owner of the Florida-based Human Systems & Outcomes Inc., which provides the checklist used to measure whether the requirements of the decree are being met.

Jeff Portnoy, the court-appointed special master in the Felix case, said yesterday Groves does not profit from the special checklist test.

He said Cayetano is off base in supporting the investigation.

"He is a defendant in the case; he is represented by the attorney general; they have signed on and voluntarily agreed to every order, and they have never once raised any issues of mismanagement," Portnoy said.

"If the governor thinks there is something going on, he should bring it to his attorney, and we would review it. They have never done that."

Cayetano, however, said that the state has been unable to get some specific information, and it is the duty of the Legislature to make inquiries.

"I think they have a duty to look into these conflicts. We have been looking into them for a long time, but the way the process is structured ... We have heard all the anecdotes ... but we don't have a way to get to the record. So, under the power of subpoena, they will get to the heart of it.

Hanabusa said the investigation has already drawn support and praise in the community. "It has raised the level of awareness. The positive aspect of the investigation is that it has empowered people in the field, so many are coming forward and giving us information."