Suit alleges state
misuse of funds
for disabilities
The Hawaii Disability Rights Center has filed suit against a state agency, alleging the agency misused $5 million and failed to provide services to hundreds of people.
The lawsuit was filed against the Department of Health's Developmental Disabilities Division on Monday in U.S. District Court on behalf of more than 300 people with developmental disabilities.
The suit alleges that the division misused money appropriated by the state Legislature in fiscal year 2001-02 to provide critical services to those with mental disabilities. It also alleges the division violated state law, which requires that federal money be used before state funds are expended on programs and services.
Janice Okubo, spokeswoman for the Department of Health, said officials have not seen the suit, which alleges that the Developmental Disabilities Division misused, misappropriated or returned more than $5 million in unused funds to the state while people were on a waiting list for services.
"There were slots approved by the Medicaid agency for people to receive these services. The slots were left unfilled and the money was returned to the general fund," said Gary Smith, president of the Hawaii Disability Rights Center.
Smith said the center conducted a yearlong investigation into the Developmental Disabilities Division and presented its findings to state health officials before filing the lawsuit.
The center sued the Department of health four years ago for failing to provide community services in a timely manner. In an agreement, known as the Makin settlement, the state agreed to more quickly supply services to people on a wait list.
"The new lawsuit is the outcome of the state's failures to meet the requirements of the settlement agreement of the Makin lawsuit," said Smith.
But Okubo said the state has complied with the agreement. "In the spirit and intent of the Makin settlement, we are continuing to reduce the wait list for disabilities services," Okubo said.
