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Alu Like, Native Hawaiian Legal Corp fight for restoration of OHA funding

Mervina Cash-Kaeo, president and CEO of Alu Like Inc., tells the crowd that half of its staff, which helps Hawaiians through economic or social crisis, would be laid off if the Senate’s version of OHA’s budget bill is passed. – Photo: Lisa Asato

Alu Like, Native Hawaiian Legal Corp fight for restoration of OHA funding

By Lisa Asato / Ka Wai Ola

About 75 people gathered around the Queen Lili'uokalani statue near the state Capitol Monday afternoon to urge lawmakers to pass the state House version of the Office Of Hawaiian Affairs budget.

The House is proposing a 20 percent cut from OHA's $3 million state general fund appropriation while the state Senate would slash the $3 million funding to zero.

"Alu Like is very concerned about the zeroing-out of these funds," said Mervina Cash-Kaeo, president and CEO of Alu Like. "The funds that we receive from the Office of Hawaiian Affairs helps us to be a bridge to ... our people who are in crisis" and to help "stabilize their lives economically and socially."

OHA attorney Bill Meheula updates the crowd on a new draft of a past-due revenue bill introduced by state Sen. Clayton Hee in conference committee. – Photo: Lisa Asato

The zeroing out of the budget would mean laying off half the staff at a time when the need for a strong safety net is heightened in the face of tough economic times, she said.

Alan Murakami, staff attorney with the Native Hawaiian Legal Corp., which also receives funding from OHA, said the 100 percent cut would affect law firm's ability to pursue cases ranging from protecting burial rights, coastal resources like limu, water for taro and fishing areas. "It would be substantial, it would be profound and it would be debilitating," he said of the Senate's proposed cut.

"There's no parity in this cut," he added later. "Hawaiians under OHA, Hawaiians under DHHL (Department of Hawaiian Home Lands) are both getting cut 100 percent of its general funds for operating expenses. No other state agency that I know of has been asked to do this. What is the equity? What is the fairness in that? I don't know. It seems to be that balancing of the budget is being done once again on the backs of Hawaiians." DHHL did not oppose its cuts in testimony, he said.

Mahealani Wendt, executive director of Native Hawaiian Legal Corp. with NHLC staff attorneys Alan Murakami and Moses Haia. Behind them, Keiki Kalima, 8, hoists a Hawaiian flag. – Photo: Lisa Asato

A joint House and Senate conference committee will reconvene tonight at 7 in Room 309 of the state Capitol to continue debating differences on their versions of OHA's budget bill.

The House version would cut OHA's general fund appropriation by 20 percent – which keeps it in line with 20 percent cuts for much of the state – but still provides around $2.5 million each year. OHA has testified in favor of the 20 percent cut, saying it understands that the state is facing a budget deficit.

At a hearing last night, House conferees asked for more time to consider arguments made by Sen. Clayton Hee, who said that the Senate position based primarily on a $2 million settlement in legal fees OHA received from Native Hawaiian Legal Corp. stemming from a Hokulia lawsuit. He said that money, plus the interest it has collected, would make up for the $3 million cut in general funds.

Calvin Malina Sr., a retiree from Waimänalo says he was disappointed at the turnout at yesterday’s press conference, which attracted some 75 people. “Where's all the Hawaiians?” he asks. “That’s the No. 1 problem. The Hawaiians gotta stay together. When something's going on, they gotta show up like 50,000. We have … 100,000 sign up for Kau Inoa, where are they? They all together in the same boat. But you know what? The Hawaiians say they going let the other Hawaiians take care for them.” – Photo: Lisa Asato

Hee said the House's proposal, by contrast, would increase the state's appropriation to OHA to about $5 million if you factor in the settlement money in addition to the $2.5 million general fund appropriation it proposes. "That's not 20 percent less," Hee said. "That's almost 100 percent more."

But Mahealani Wendt, NHLC executive director, said that the sum from the lawsuit would not make up for the two-year funding shortfall created by the zeroing out of OHA's budget. She and others from NHLC also took issue with Senate Ways and Means Committee Chairwoman Donna Mercado Kim having said that the state has let OHA keep the settlement money and has not requested its share.

"We've heard Senator Kim make statements that 'This money actually belongs to us (the state), but we're going to let OHA keep it.' We don't think so, but we haven't really explored it," said Wendt, adding that the settlement money is "clouding the issue."

State Reps. Marcus Oshiro and Mele Carroll, House co-chairs for the conference committee overseeing OHA’s budget bill, will reconvene with other House and Senate conferees at 7 tonight in state Capitol Room 309. – Photo: Lisa Asato

NHLC staff attorney Moses Haia, meanwhile, said giving the $2 million in settlement money to the state would "be akin to rewarding the state for breaching its trust duties and obligations."

"The decision found that the state had failed in its duty, the State Historic Preservation Division failed to properly regulate and administer the law," Haia said. "Providing money back to them for doing that just makes no sense whatsoever and (is) ultimately hewa."

The annual $3 million that the Senate proposes to cut would affect OHA personnel, advocacy and service programs, as well as programs through Alu Like Inc., Native Hawaiian Legal Corp. and Nä Pua No'eau, which together receive $1.9 million in funding from OHA to provide social services, legal services and educational enrichment, respectively.

Wendt said slashing OHA's general funds would mean that NHLC would have to cut its staff and services by half and that it would no longer be able to serve all Hawaiians – because it would rely solely on trust funds, which are restricted to those of 50 percent blood quantum or higher.

She said that from 1980 to 1988, OHA did not receive general funds, and during that time NLHC did not accept Hawaiians with less than 50 percent blood quantum. "We weren't allowed to use those funds to serve those who were less than 50 percent," she said. "We are looking at going backwards."

OHA has also testified to that effect. But Hee took issue with that, saying he served as an OHA trustee for 12 years and he knows that it has been done. "The services provided with the use of trust funds to those of less than 50 percent serve to provide for the betterment of the conditions of Hawaiian people, and that's why they used that money," he said.

The committee has until Friday, May 1, to finalize OHA’s budget before it can go to both chambers for a vote. Wendt said the most crucial legislators to contact to support fuller funding of OHA, are Hee, Kim and Senate President Colleen Hanabusa. Their contact information is listed here:

Colleen Hanabusa
Phone: 586-7793
Fax: 586-7797
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Clayton Hee
Phone: 586-7330
Fax: 586-7334
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Donna Mercado Kim
Phone: 587-7200
Fax: 587-7205
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

It was standing room only last night, April 27, as state Sens. Clayton Hee and Donna Mercado Kim prepare to make their case for the Senate’s proposal to slash OHA’s budget from $3 million a year to zero. At far left at table are Sens. Fred Hemmings and Brickwood Galuteria. Standing are Kaho‘onei Panoke of state Rep. Mele Carroll’s office, in red, and next to him, Richard Pezzulo, OHA’s chief financial officer. Seated in the front row are OHA Administrator Clyde Nämu‘o, wearing a tie, and Mahealani Wendt of the Native Hawaiian Legal Corp., pictured at his left. – Photo: Lisa Asato

Conference committee will reconvene on the OHA budget bill

HB 900 HD2 SD1
7 tonight, Tuesday, April 28
State Capitol Room 309

Some other bills pending in conference committee hearings today, April 28, at the Capitol are:

OHA past-due revenue bill

SB 995 SD2 HD3
3:30 p.m.
Room 224

Attorney Bill Meheula said he learned on Friday that OHA's proposed $200 million settlement to cover income and proceeds for ceded lands for the period Nov. 7, 1978, to July 1, 2008, is facing a new draft introduced by Sen. Clayton Hee in conference committee. Hee's proposal would offer "a $251 million payment and 20 percent of ceded lands by acreage, not by value," Meheula said. The draft also says that OHA could accept it within two years; if they decline it then OHA could go for $200 million, Meheula said. "I read the bill and that global (reference) doesn't seem to be global," Meheula said at yesterday's press conference on the OHA budget, when asked to update the gathering. "What it seems to me is (that it) would be for OHA's right to income and proceeds for all time, but it doesn't seem to be for overthrow claims and other things "that can certainly be made clearer."

"It was a shock to all of us," Meheula said of Hee's conference draft. In his personal opinion, not as OHA's attorney, Meheula added: "The community came forward and spoke clearly that they didn't want a going forward settlement last year. And I think we can't just enter into a going-forward settlement without bringing it to them, studying it, things like that, which hasn't been done."

As originally written going into conference committee, the bill would address income and proceeds from ceded lands due to OHA for the period Nov. 7, 1978, to July 1, 2008, in which the state would convey a total of $200 million in property to OHA in two steps. Kaka‘ako Makai would be transferred to OHA in phase one, and the Legislature would determine the remaining parcels to make up the difference in phase 2. Certain parcels would be exempt, a settlement going forward would not be included and OHA would have rights to conduct due diligence and refuse property.

Ceded lands moratorium bill

SB 1677 SD1 HD2
3:30p.m.
Room 224

Would require a simple majority of the House and Senate to disapprove any sale or exchange of state lands, including ceded lands, and call for an informational briefing in the community where the land is located.

Relating to 'opihi

SB1 SD1 HD2
2:30 p.m.
Room 224

Would address overharvesting of 'opihi by imposing restrictions on harvesting and possessing opihi.

Kahana Valley

SB 638, SD2 HD1
HB 1552 HD2 SD2, a similar bill, is also on the agenda
2:30 p.m.
Room 224

Would impose a two-year moratorium of evictions of people living in Kahana Valley who meet certain criteria. Would authorize the state Department of Land and Natural Resources to issue long-term residential leases to qualified people.

Relating to legacy lands

Tomorrow, Wednesday, April 29
SB 884 SD2 HD1
10 a.m.
Room 229

a conference committee will convene on a bill that would temporarily cut funds affecting legacy lands, natural land conservation -- think invasive species control to stem the spread of coqui frogs and other pests – and rental housing. Opponents of the bill included Mark Fox of the Nature Conservancy and Lea Hong of the Trust for Public Land, who said the land conservation fund – which would see no funding from July 1, 2009, to June 30, 2015 – has made possible joint purchases by OHA and others of parcels like Waimea Valley and Wao Kele o Puna, lands that are now preserved in perpetuity.

Fox was pleased that another conference committee approved another version of the bill that would generate more money to the three funds by increasing conveyance tax rates for purchases of home or commercial properties of $2 million to $10 million. The bill, HB 1741, HD1, SD 1, CD1, temporarily cuts the funding percentages that the rental housing trust fund and the natural area reserve fund would receive from July 1, 2009, to June 30, 2012, but the new taxes more than make up for the cuts, he said.

Fox said all three trust funds, which receive specific percentages from taxes paid on sales or transactions of properties, otherwise known as the conveyance tax, are already taking a hit because of a decline in the real-estate market.