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Hawaii News

Aiona, Abercrombie at odds over nonprofit funds

Hawaii’s gubernatorial candidates disagree on how soon $23.7 million in state emergency funds should be released to nonprofit organizations.

Democratic candidate Neil Abercrombie said this week that he would release the funds.

James "Duke" Aiona’s campaign said yesterday that the Republican candidate would "seriously consider" releasing the money.

Earlier this year, lawmakers appropriated the $23.7 million from the Emergency and Budget Reserve Fund, the so-called rainy day fund, to 42 state programs and nonprofit organizations to maintain various programs this fiscal year.

The bill became law without Gov. Linda Lingle’s signature.

A group of nonprofits called for the candidates’ stances after Budget Director Georgina Kawamura told the state Legislature on Monday that the administration would not yet release the money, citing a "weakened national economy."

"We are hoping upon hope that this administration will reconsider its position and release the funds in the second quarter," said Alex Santiago, executive director of Protecting Hawaii’s Ohana, Children, Under Served, Elderly and Disabled, or PHOCUSED.

Travis Taylor, spokesman for Aiona’s campaign, said Aiona will look at all appropriated funds after the state Council on Revenues’ December forecast.

"The Council on Revenues lowered its revenues projections for this fiscal year at its last meeting in September, which highlights the need for Hawaii’s next governor to prudently manage the state’s finances amid this period of economic uncertainty," Taylor said. "If the next governor is going to be a rubber stamp for the state Legislature, as the case would be with our opponents, Hawaii would be operating in the red like they do in Washington."

It is in Lingle’s executive power to withhold the funds. In July, when she allowed the bill to become law without her signature, she said each appropriation must be scrutinized before release.

"I have instructed the departments to not take actions to consider any of the proposed appropriations in this bill until after the first quarter of fiscal year 2011 is completed and updated Council on Revenues estimates are available," she said.

The Council on Revenues’ first-quarter predictions last month saw 2 percent in revenue growth for this fiscal year, which began in July. This was lowered from the council’s previous 6.2 percent growth, but the older figure included the delayed payouts of individual tax refunds earlier this year.

Council Chairman Paul Brewbaker said the projection is the same once the delay is factored out. The council sees steady 6 percent growth over most of the decade.

"The underlying expectation of economic recovery seems to be playing out as we expected," he said last month. "The re-acceleration of the economy locally has occurred."

Abercrombie said yesterday that he views the appropriations as contracts to these organizations that should be honored.

He said, "The state is obligated to take care of these elements that are associated with all of these things — healthy start program, prenatal care, mental health services, substance abuse treatment."

Taylor said Abercrombie’s call for an immediate release of money is premature.

"Our opponent is making blind promises, which is simply irresponsible," he said. "Duke and Lynn (Finnegan), on the other hand, will seriously consider the release of funds and do what’s in the best interests of all the people of Hawaii."

Abercrombie said the money is operational cash that has been authorized and appropriated by the Legislature. "You can’t ask people to perform a service and tell them, ‘You’re not going to get paid.’ If that was done by these agencies, we’d have them in court."

On Monday, Kawamura said because Hawaii’s economy depends on tourism, there could be "potential adverse impacts" due to the mainland economy.

"Locally our economic recovery is very fragile," Kawamura said. "A few days ago, one of the state’s largest banks predicted that Hawaii’s economy will continue to experience sluggishness through the end of the year."

Several organizations said key services will be cut if the money is not released. Catholic Charities Hawaii is owed $350,000, all of which would go toward its Lanakila Multi-Purpose Senior Center, which services more than 2,000 seniors on a $400,000 annual budget.

"It really is a preventative program to prevent institutionalization," said Catholic Charities President and Chief Executive Officer Jerry Rauckhorst.

Lawmakers budgeted $200,000 for Adult Friends for Youth, a youth-gang prevention and intervention service. Adult Friends President Deborah Spencer-Chun said, "Many of our kids give back to their communities. They become productive, they give back in taxes. … If they don’t do that, they’ll continue to drain."

 

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