Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 2, 1 February 1996 — Lobby team offers new budget proposal to legislators [ARTICLE]

Lobby team offers new budget proposal to legislators

by Patrick lohnston The state is still in a fīnancial crisis and it's likely that OHA's share of ceded lands revenue will be targeted in this year's legislative session. In anticipation of this, last month, OHA's legislative lobbying team introduced a proposal to legislators

that would significantly alter the relationship between the agency and the state. The proposal, whieh was offered as a possible discussion point, was outlined by Legislative Review Committee Chairman Abraham Aiona at a budget meeting with the senate ways and means committee. Under the plan, OHA would

effectively loan the ceded lands revenue owed to it over the next two years back to the state. Conditions of the loan would include an understanding that the state would make interest payments in the years in whieh the loan was due and that the piineipal would be repaid. The proposal also introduced the

possibility of OHA assuming all payment of OHA salaries. It suggested redirecting general funds that originally paid for some of those salaries into state-funded programs affecting Hawaiians slated to be cut by the Legislature. This, committee members anticipate, would keep the programs in plaee and save the state money.

As part of such an agreement, beginning this session the state would sit down with OHA and determine whieh programs needed to be saved and the dollar amounts that would go towards them. As some of those programs might eventually be handed over in their entirety to OHA, discussions would include ways to hand over certain policymaking and "enforcement" powers to OHA to allow for the effective administration of the programs by the agency. "Discussions cannot be confined solely to money, but must include meehanisms for empowerment to succeed," Aiona said in his statement. Aiona emphasized that the proposals were just a springboard for further talks and had not yet been adopted by the board. "I must make clear that our proposals today are points of discussion and opportunity. Our board has taken no formal action on these proposals. The senate members present - who had originally eome to hear presentations on OHA's budget by staff - decided to read budget documents later and focus on Aiona's opening statement. Senator Rosalyn Baker asked how OHA felt it could justify funding salaries using only trust

funds but couldn't do the same for Hawaiian programs. "If OHA is saying that the full cost of salaries ean eome from trust funds, isn't that a change in position? Why can't that be applied to programs?" (Ceded lands revenues are required by law to be used for the benefit of

Hawaiians with 50 percent Hawaiian blood or more. In order for funds to be used for all Hawaiians, there must be matching funds provided.) Trustee Kīna'u Kamali'i responded that OHA has been operating under a legal opinion that administrative costs benefit native Hawaiians and so the use of (only) trust funds is permitted. However, a match was needed if trust funds were used for direct services for all Hawaiians. Committee chair Donna Ikeda then asked trustees what was meant by Aiona's use of the word "empowerment." Trustee Kamali'i responded that it meant giving OHA the power to make up administrative rules and enforce those rales. Aiona stressed that their mission was cooperation, not confrontation. "We are here to convey to you, to the citizens of Hawai'i, and continued page 6

"We are here to eonvey to you ... our deep commitment to join hands - ku i lima - in what we all recognize as a very difficult and potentially dangerous fiscal period in the state of Hawai'i." - Abraham Aiona

Legislators from 1

to the Hawaiian people, our deep commitment to join hands - ku i lima - in what we all recognize as a very difficult and potentially dangerous fīscal period in the state of Hawai'i." In appreciation of the severity of the crisis, OHA has chosen not to ask the state for an increase in its budget but will maintain funding at current levels. As Ka Wai Ola 0 OHA went to press, OHA staff was preparing a similar budget presentation for the house fmance committee. The chairman of that committee, Calvin Say, has spoken publicly about his desire to consider changes to OHA's share of ceded lands revenue. Say ean be reached at the Legislature at 586 6200. Donna Ikeda ean be reached at 586-6690.