Hawaii’s largest public employee pension fund enjoyed a strong fourth-quarter finish in 2019, boosting its assets to a record high of nearly $18 billion. That’s heartening, given that the Employees’ Retirement System fund, which serves nearly 125,600 beneficiaries, is now underfunded by a record $14 billion, with the funded ration set at about 55%. If projections hold, it should rebound to the 100%-funded mark in the year 2045.

Meanwhile, as the silver tsunami rolls in so will state spending challenges, with a big chunk of the general fund devoted to funding retiree pensions and health care, debt service payments and Medicaid.

OHA, Kondo fight over minutes

How will the standoff between the Office of Hawaiian Affairs and State Auditor Les Kondo play out?

Nobody knows. Kondo makes a persuasive case that he should get the unredacted minutes of executive-session meetings for his mandated OHA spending audit. OHA declined to hand them over, so Kondo suspended his audit, which needs to be finished before OHA can get $3 million in state funding. OHA’s lawyer Robert Klein said Kondo is bound to finish that audit, and OHA has sued to get a judge to settle the dispute.

This much is clear: The taxpayer will pay a bigger bill, in the end.