Ka Wai Ola - Office of Hawaiian Affairs, Volume 18, Number 11, 1 November 2001 — OHA news update [ARTICLE+ILLUSTRATION]

OHA news update

September was an unusual month and now requires some new approaches to past practices. As the chair of the new Budget and Finance Committee, my goal is to be innovative and apply some new directions in exercising fiscal responsibility, as being one of my frequently voiced concerns at OHA meetings. The OHA portfolio has been adversely affected by the general stock market decline and coupled with the late Supreme Court finding that Act 304, whieh gave OHA ceded land ineome as a source of funds, has been found invalid and not in eomplianee with federal law. This may negatively affect continuing some of OHA's programs. Not being in eomplianee ean also mean that some of OHA's funding is being scrutinized for eomplianee with state procurement requirements and this too may reduce

availability of funds for OHA programs. Literally OHA's sources of ineome to function have been curtailed, both due to the stock market decline and the Supreme Court's reversal of Act 304. These conditions strongly suggests fiscal responsibility is desirable in the near term. Because there ean be further declines or dislocations in employment that also will affect the larger economy of Hawai'i and put pressure on the OHA portfolio's value. While there is a possible recall of the legislature, the issues to be addressed may not allow time to consider the OHA plight with the invalidation of Act 304 and the ineome received from ceded lands commitment. This means that there may have to be cutbacks or discontinuance of programs, and this information is being forwarded to

help in community planning should the condition occur. lt is important to realize that OHA is performing a perpetual trust function, and means that a perpetual trust remains intact perpetually and serves eaeh community or generation with uninterrupted services. It is apparent that OHA does not have taxing powers. And it is not reasonable to expect OHA to carry a larger burden of supplying services to all beneficiaries or claimants against the OHA portfolio. Because OHA does not have taxing powers it cannot raise funds for providing universal services for everyone, OHA must be more selective based on the 1959 Admissions Act whieh identifies the beneficiaries and ean be said to act more in the capacity of a trust for specifically identified individuals. These terms are contained in the

1959 Admissions Act. Contained in a Compact between all of the voters of the Hawaii electorate and the Union when pursuing admission into the Union as a state in 1959. There is a confirmation of this 1959 Compact agreement in 1978, when the Constitutional Convention of 1978 first formed OHA to eomply with the terms of the 1959 eompact. And that was OHA would assume the responsibility of providing benefits to the Hawaiian beneficiaries. In spite of the reduced ineome status, the work of OHA will eontinue until some other source of ineome ean be arranged and is something I shall be putting my efforts towards in jointly aeeomplishing. It is often said that every setback also offers at the same time a great opportunity. ■

Charles Ota

Trustee, Maui