Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 5, 1 May 1993 — House and Senate consider trustee compensation [ARTICLE]

House and Senate consider trustee compensation

by Patrick Johnston A bill that would provide salaries for OHA trustees is still under consideration by state Senate and House committees and will likely go to conference. Senate bill 1027 is the result of a recommendation made by the legislatively-appointed OHA Trustee Compensation Advisory Commission, that OHA trustees be paid a salary and receive benefits similar to other elected officials. Presently OHA trustees are paid on a pieeemeal basis, receiving $ 1 00 for official business, usually committee and board meetings, plus travel and per diem. The senate bill would allow for a yearly salary for trustees, plus all state benefits except retirement, and transportation and personal expenses related to their work. The senate bill did not specify the salary amount. A salary eommission would be created to make compensation recommendations. Like OHA's operating budget, trustees' salaries would be paid using half general funds and half special funds. SB 1027 also would require a annual audit of trustee perfor-

manee and trustees would also be asked to work full time with no other work commitments. The bill passed the Senate and crossed over to the House March 1 1 . On March 22, compensation commission chairman Fred Cachola and OHA trustee Abraham Aiona gave testimony supporting the bill to the Hawaiian Affairs Committee. Aiona said he appreciated the work the commission was doing but was concerned about a number of items. These were the stipulations that trustees not be allowed to work outside their duties as trustees, or receive retirement benefits. He also objected to the requirement that they be audited eaeh year. Aiona argued providing retirement benefits would be just eompensation for trustees who had worked a long time for the agency and would be an incentive for young people to become trustees. He spoke against an audit and the 'full time' stipulation, pointing out that other elected officials are not subjected to similar scrutiny and are allowed to work at jobs other than their elected position. Fred Cachola, chair of the OHA

compensation commission, said the reason they recommended against retirement benefits was because it would encourage trustees to not overstay their weleome and allow room for younger Hawaiians to hold the position. "We do not see the (trusteeship) as a plaee for career development," he said. "We want it to be a position that many people ean run for." He said that the audit would be important because it would be a ehanee to inform the public about the activities of the trustees. "This is a positive opportunity to inform the public about what they are doing," he explained, adding that "it was good to inform the public and then decide the pay." Hawaiian Affairs Committee chair Tom Okamura expressed reservations about the logistics of carrying out the audit especially as it is not altogether clear what the responsibilities of the trustees are. "You are asking for problems," he said, pointing out that "it would be difficult to audit all trustees accurately." There was general consensus among committee members that

the duties of the trustees had increased significantly since OHA's inception and that, in light of the fact that OHA will be receiving more than $130 million back rent from the state for use of ceded lands, a salary would be a good catalyst for stability. The committee deferred decision on the bill until March 24 when they passed it with a number of amendments. These included: lowering the base salary to $32,000/year for trustees and $37,000 for the chairman, down from the eommission's recommendations of $35,000 and $40,000; the inelusion of retirement benefits; an allowanee for expenses; and an audit of OHA at least onee every four years, not an individual yearly audit of eaeh trustee. The bill then moved to the finance committee. There, trustees Aiona and DeSoto repeated their opposition to the requirement that they must work on a full-time basis. Committee chair Calvin Say, questioned trustees DeSoto and Aiona about whether the money to provide trustee salaries could eome entirely from OHA special funds. Trustee DeSoto replied

that this would be possible if an amendment was made to the statute that presently limits trustee compensation to $100 per attended meeting. The finance committee amended the bill slightly, removing the use of the word 'full-time' and replacing it with 'part-time'. They also wanted all of the money to be provided by special funds. This revision, however, makes the bill unconstitutional because it is illegal for the state to dictate to OHA how mueh to pay its trustees without providing any of the funds to do so. Says OHA govemment affairs officer Donald S. Bowman, "the govenment can't tell us how to pay trustees if we use all special funds. It's against the law." The bill now moves back to the Senate where members will decide to accept the recommended amendments or take it into conference. If they accept the amendments the bill effectively becomes nullified as it would be technically illegal. If it goes to conference a compromise will be worked out before it is sent to the governor for signing.