Ka Wai Ola - Office of Hawaiian Affairs, Volume 28, Number 10, 1 October 2011 — Balancing act [ARTICLE+ILLUSTRATION]

Balancing act

ByTreenaShapiro State Budget and Finance Director Kalbert Young believes in being transparent, honest and willing to take on the state's difficult and sometimes controversial fiscal challenges. Going into the job, he knew the state could no longer avoid dealing with issues that have gone unrecognized and unresolved for too long - leading to a situation where the state isn't bringing in sufficient revenue to maintain its current level of programming or fund long-term liabilities, such as pensions and health plans for state employees. "It's a big challenge," he acknowledges. "It makes my job that mueh more interesting." His answer isn't meant to be glib. It's been a turbulent nine months and not everyone appreciates the administration's commitment to long-term recovery, instead of just year-to-year measures. "It's painful, it's messy, but you can't get away - and you shouldn't get away - from dealing with it," he says. Young sought the opportunity to be part of Gov. Neil Abercrombie's administration, in order to take a leadership role in shaping what the state could be in its future evolution. As for Abercrombie himself, Young says, "It's refreshing that he has been willing to step up and address long-term solutions, rather than playing politics and clouding or shading government finances." In government, the bottom line is rarely dealt with, sometimes for laek of poliheal incentive, or because it raises public ire, Young observes. It's not a popularity issue, however. The Budget Director believes these long-term solutions ean strengthen the state's economy and leave it less susceptible to eeonomie crises in the future.

That message doesn't always trickle down to the general public, however, as efforts to reform the tax code have been opposed by industries that have received special treatment. Meanwhile, public-worker unions wage a media campaign in an effort to protect their members. Prior administrations haven't ignored the extended eeonomie turbulence, and have enacted sound, fiscal practices that would have achieved results if the recession hadn't gone on as long. After years of curtailing spending and making strategic cuts, "We've used every single reasonable approach to get through the hnaneial downturn. All the easy things have been done," Young says. Unless the state ean increase its revenue eolleehon - for example, through jobs creation - it has to make further cutbacks, whieh after several years can't be absorbed. "A small cut leads to a large ripple effect, relatively speaking," Young explains. "If you trim $2 million from the budget, somebody is getting cut. It's that relative factor." On top of that, the state has to take command of commitments to covering existing employee benefits, such as pensions and health plans. The state government has to find a way to address these unfunded liabilities - whieh contributed to Hawai'i's downgraded credit rating by two reporting agencies - and make adjustments to ensure the state ean pay for these liabilities in the future. "These problems can't be overlooked any longer. We have to be proactive," Young says. Young, 42, was most recently the County of Maui's Director of Finance. Prior to that he spent 10 years working at Kamehameha Schools in government relations, budget and hnanee and internal auditing. This experience, as well as five sessions working for the state Legislature, makes him comfortable with the government process. Since joining the state administration, Young has worked to establish good, open rapport with lawmakers - to understand their positions and educate them on the administration's positions. "In the end, compromise is not beyond reach," he points out. State House Finance Chairman Committee Marcus Oshiro agrees: "It's very important that members of the Legislature have a good working relationship with the Budget and Finance Director. During the first year of the Abercrombie administration, Young has showed a strong grasp of the long-term hnaneial issues that Hawai'i needs to deal with going forward." Oshiro adds, "Our relationship with Kalbert has been excellent because he is a straight shooter, he makes time to ensure we understand complex matters, and together we ean better communicate Hawai'i's hnaneial budget issues to the community." Today, Young considers Maui his home, but he was born and raised on O'ahu, and graduated from Maryknoll High School and the University of Hawai'i. His Chinese, Hawaiian and German ancestry led his parents to teach him respect for all cultures, and to always do well personally and aim for success. He also was raised to recognize that his own accomplishments demonstrate what Hawaiians ean achieve. He hopes that Hawaiians recognize that five of their own were included in Abercrombie's original cabinet appointments. (Sunshine Topping resigned from the state Department of Human Resources Development citing family reasons.) Young thinks that the ethnic makeup of the cabinet was unintentional, and more a reflection of how individual members' qualifications and philosophies matched the Governor's criteria. He says, "I look at the cabinet as everyone doing well for the future of Hawaiians, and very proud of the fact that Hawaiians will get to help the entire state." 77/ is is the īast in a series of profiles ofnewly confirmed Native Hawaiian leaders in the Abercrombie admbnstration. I Treena Shapiro, afreelance writer, is aformer reporterfor the Honolulu Star-Bulletin and Honolulu Advertiser.

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State Budget and Finance Director Kalbert Young, pictured outside his No.l Capitol District office building in downtown Honolulu, is described as a "straight shooter" by House Finance Committee Chairman Marcus Oshiro. Young, who is part-Hawaiian, was raised to recognize that his own achievements demonstrate what Hawaiians ean accomplish. - Photo: UsaAsato