Transition: Change doesn’t have to be painful

‘Ano‘ai kakou.  As you may have heard through the media, this has been a turbulent few months for OHA.  It is heartbreaking that OHA cannot be focused on what our beneficiaries are demanding – assistance with housing, education, and health.

Change is never easy, but I want to state for the record that all of the initiatives I fought for in the past two months were for one purpose only:  To protect the Native Hawaiian Trust Fund, now and into the future, for our beneficiaries.  If my first initiatives were passed by the Board, our beneficiaries would have seen immediate change for the better.  We were so close.

By a majority vote of the Board we wanted to negotiate a buyout of the CEO/Administrator/Ka Pouhana’s contract.  We felt that OHA could do so much more for our beneficiaries if we could change the course of where the Administration was headed.  A buyout would have been the least painful way to bring about that change.  The CEO would receive a negotiated sum of money and his reputation would be intact since we wouldn’t have to air any “dirty laundry” in the public.  But as everyone who read the newspaper or watched the evening news lately knows, it didn’t work out that way.

On a positive note, Trustee Keli‘i Akina’s proposal to conduct a more comprehensive audit of OHA, which will look into things that the three mandated OHA audits don’t cover, looks like it will become a reality.  On February 8th, the Resource Management Committee formed an Advisory Committee to make recommendations to the Board on the scope of a proposed financial audit and management review.  Our beneficiaries should be proud because this is only coming about because you demanded it.  I look forward to the audit and finally answer the one question I’ve been asking nonstop for the last decade:  Where is all the money really going?

On February 9th, the Board elected Colette Machado as the new Chair of the Board of Trustees.  While she has been part of a faction that has no love for my demands for fiscal accountability, I know that she will do her best to be fair.  I will definitely to my part to help her move OHA in the right direction again so that the Board can make a real impact in the lives of our beneficiaries.

However, I was disappointed to see that Trustee Machado was able to let former Trustee Haunani Apoliona use her column space in the February Ka Wai Ola as her soapbox to attack me, while my original February article was banned by the CEO because he felt it was too critical of the Administration and the Trustees that support him.  I’ll let you, the readers, be the judge of whether that is favoritism or not.

Trustee Hulu Lindsey remains Chair of the Resource Management Committee, so we can expect the new leadership structure to honor our beneficiaries’ call more transparency at OHA.

OHA must be an agency that treats our beneficiaries equally and it’s now up to the new leadership to make sure there is an even playing field at OHA.  Most of the OHA Staff just want to do their jobs and I ask that the general public withhold their judgment during this time of change.  Rome wasn’t built in a day and we cannot change OHA in a few months.

Mahalo nui loa and God bless you all.

Gagging Dissenters

`Ano`ai kakou…  This could be the last time you read any hard truths about OHA in my columns.  On August 24th, the BAE Committee and OHA’s CEO proposed a new policy called “One Voice, One Message,” which requires that all external communications be submitted to the CEO for review and approval prior to execution or engagement.

If this policy is approved, Trustees will no longer be able to publically voice their opposition to any board decision without facing severe sanctions for speaking out against the majority.  So if five Trustees vote to approve a position, the remaining four Trustees will be forced to go along with the majority.

While it should be forehead slapping obvious why this is a terrible idea, allow me to list some of the reasons why:

  • WE ARE A DEMOCRACY. The First Amendment guarantees we can express our opinions.  Beneficiaries and voters who put us in office demand it.  Only petty Dictators in third world countries gag dissent.  First world democracies allow full and free discussions to take place.  Just imagine if Democrats had tried to gag Republicans after Obama Care was passed.  They wouldn’t stand for it!
  • WHY IS A PR FIRM WRITING OHA POLICY? – The proposed “One Voice, One Message” policy was prepared by Neal Yokota, President and CEO of Stryker Wiener & Yokota Public Relations, Inc. OHA policy must always be written in-house with the input and review of OHA attorneys.
  • TRUSTEES ARE REQUIRED BY LAW TO VOICE THEIR DISSENT. According to The Uniform Custodial Trust Act (HRS §554A-6), if we don’t express our dissent in writing before a vote is taken, we will be liable for the illegal or negative actions taken by the majority.
  • THE POLICY IS SHORT SIGHTED. Future Trustees could use “One Voice, One Message” to stifle dissent while they funnel millions in Trust dollars (grants, contracts, high-paying positions, leases) to their family and friends.
  • WHISTLE BLOWERS.One Voice, One Message” conflicts with HRS 378-62, which protects employees who report violations of law by their employers.
  • THE MAJORITY IS NOT ALWAYS RIGHT. If you had a vote on the mainland, I am sure that the majority would vote to outlaw interracial marriage.  Does that mean dissenters should just go along with the majority?  Hell no!  Wrong is wrong no matter what the majority says.
  • IT’S MISLEADING.One Voice, One Message” sounds like Orwellian doublethink.  It’s not about unity at all; it’s really about eliminating all dissenters, whether they are OHA Trustees or employees.

It’s clear this is all part of a greater scheme by the Board Chair and the CEO.  They recently passed another policy on sanctioning Trustees who go against any OHA policy.  Now it’s painfully obvious they did that to give serious teeth to this new policy gagging dissenters.  “One Voice, One Message” is the final piece they need to empower the CEO at the expense of the Board of Trustees.

Thankfully, due to controversy, the proposal was deferred to the next BAE meeting.  I will continue to strongly oppose it and I pray my fellow Trustees won’t go along with such foolishness.

Bring back the Land Committee

`Ano`ai kakou…  By the time you read this article you will have voted in the Primary Election.  I hope you took my advice and voted for new people.  Let me tell you why this is important, especially in the OHA races.

About a year ago, at the urging of the current Board Chair, two committees were collapsed into one.  The Budget Committee and the Land Committee became the Committee on Resource Management chaired by Trustee Colette Machado.   The excuse was to save time and effort, but the real reason was to consolidate power.

Since that time very little, if anything, has happened in the new combined committee.  Trustees have received little or no information on our land negotiations.  For instance:

  • MAUNA KEA: On May 26, 2015, Governor David Ige announced that he asked UH, which subleases the Mauna Kea summit area from the state, to make ten changes to improve its stewardship of Mauna Kea.  One of the changes included UH voluntarily returning to the state more than 10,000 acres that are not specifically needed for astronomy.  I believe UH should turn the lands over to OHA, since all 11,300 acres of land within the Mauna Kea Science Reserve are public land trust lands classified under section 5(b) of the Admissions Act.  What better solution could there be than to put Hawaiian lands in Hawaiian hands?  OHA has now put the State and UH on notice that we are considering legal action against both.
  • KAKAAKO MAKAI: In 2012, when OHA received Kakaako lands in our settlement with the State over past-due ceded land revenues, none of us knew that the Hawaii Community Development Authority (HCDA), which has jurisdiction over development in the area, planned to lease the harbor in Kakaako.  OHA has been negotiating with the HCDA to get them to compromise on their plans to put “finger piers” in front of our Fisherman’s Wharf property.
  • LEGISLATIVE THREATS: Earlier in the year, the legislature tried to pass a “forced land sales” bills.  If HB 1635 and HB 2173 had become law, developers could use it to forced Hawai‘i’s landowners to sell leasehold lands to their lessees.  Kamehameha Schools led the charge against the legislation since nearly 80 percent of their commercial properties are leased.  Also, our ceded lands controlled by DLNR could have been threatened and it would have also hurt the ability of Native Hawaiian organizations and trusts to fulfill their missions.

No matter what explanation is given for all of the missed opportunities that OHA has had this past year to fulfill its mission, it all comes down to leadership and the lack of it.  To top all of this off, a five to four vote is hardly a vote of confidence to hire back an OHA Administrator who many Trustees feel lacks the business and economic development experience to move OHA forward in the black column instead of the steady red.

These are the reasons OHA needs a breath of fresh air.  VOTE FOR CHANGE.  IMUA!

Are you satisfied with the status quo?

`Ano`ai kakou…  After serving on legendary boards that worked hard to build OHA and strengthen its ability to serve our beneficiaries, it frustrates me that we’ve become so stagnated in the last few years.  If you don’t agree that OHA is standing still, ask yourself this – When’s the last time you’ve seen OHA in the news?

In the past, OHA accomplished big things with less staff and less money.  OHA was frequently in the news doing important things that mattered like establishing a state-wide property tax exemption for Native Hawaiians living on Kuleana lands (an effort which I spearheaded); providing $4.4 million in grants to Hawaiian Focused Public Charter Schools; preserving 25,000 acres of Native Hawaiian rainforest known as Wao Kele o Puna on Hawaii Island; and saving the 1,875-acre Waimea Valley.

We also haven’t been getting anywhere at the state legislature.  This was one of the first years I can think of that none of the bills in the OHA legislative package passed.  This should be a cause for concern that OHA’s clout at the legislature is waning.

OHA is the only advocate at the legislature for all Native Hawaiian issues, such as water rights, gathering rights, or land rights.  Few organizations have the resources, staff and expertise to speak to legislators on our beneficiaries’ behalf.  If OHA doesn’t do something fast to reverse its shrinking clout at the legislature, caused in no small part by inconsistent decisions and our Administration making decisions for Trustees, we will be in danger of becoming inconsequential, insignificant and insolvent.

There is so much we can do to help our beneficiaries who are suffering under the lack of affordable housing, the high cost of living, lack of fresh local produce, and the continuing degradation of our fragile environment.  We just seem to lack the will to do anything.  I miss the passion and drive that previous Trustees had in years past.  Sure we got into a few scraps with each other, but we got things done and our hearts were always in the right place.  Everything we did was for the benefit of our people.

The Board of Trustees needs new energy

We must not be content with just sitting back and letting the Administration plod along without any direction.  We need to get the fire back in our bellies and go back to doing big things.  If we don’t, we will no longer be relevant to our beneficiaries and the state might decide to get rid of us by transferring all of our assets to the general fund.

So this election, seek change and elect new blood!  Don’t be satisfied with the status quo.  Elect New People!  Electing the same Trustees will not bring any meaningful change to OHA!  Aloha Ke Akua.

Help OHA reach its full potential: Look for Change

`Ano`ai kakou…  As the longest serving Trustee, it saddens me that OHA is no longer the proactive advocate for our beneficiaries that it once was.  When I was first elected to the board in 1990, OHA was at the forefront of many issues involving native rights, housing, education, and health.

Past Trustees were actively involved, spearheading major projects, and holding OHA’s Administration accountable.  Now everything seems, for want of a better term, “stagnant.”  While I’m sure the Board Chair can produce a long list of “great” things happening at OHA, to me it’s just all public relations fluff.  Make no mistake – This is not the OHA of old that used to get results.  I’m sure that every Trustee would agree that OHA could do more for our beneficiaries.  Much more.

So what’s the solution?  It’s simple: Restore the Board’s oversight over the Administration.  Right now, there are only THREE Trustees that are holding the Administration accountable:

  • The Asset & Resource Management Committee Chair, who oversees all of OHA’s fiscal, policy, economic development, land, and administrative matters;
  • The Beneficiary Advocacy & Empowerment Committee Chair, who has responsibility over federal and state legislation, on-going programs in health, housing, and education; and
  • Last, but not least, the Board Chair, who basically just acts as the liaison between the Administration and the Board instead of providing oversight and direction. In fact, the CEO has BANNED Trustees without committees from having direct contact with Administrative staff. All requests for information must go through the Chair’s office.

So basically, the rest of the Trustees have to depend on the three Trustees above for updates and reports at the board table – There are no other opportunities for us to get information.

We could easily increase the amount of Trustees providing oversight over the Administration by going back the five committee system.  Subject matters included (1) Land, (2) Policy & Planning, (3) Program Management, (4) Legislative & Government Affairs, and (5) Budget & Finance.  Bringing back these five committees would instantly double the amount of Trustees overseeing the Administration from three to six.

The increased oversight over the Administration would finally put an end to the frequent complaints by Trustees that they are not being kept in the loop or getting regular updates on important issues.

As many of my long time readers know, this is not a new proposal.  I pushed for this change last year but the current Board Chair decided to go in the opposite direction.  He actually got rid of the Land and Property committee!

OHA is simply too big for three Trustees to control the organization.  And, as a result, crucial information is able to stay hidden.  For example, under the old five committee structure, the Budget & Finance committee chair actually had the time to take our budget out to the community for comments and suggestions.  Every line litem of the budget was presented and none were hidden in “cost centers.”  Nothing could stay hidden in the budget with that much scrutiny.

So this election, seek change and elect new blood!  Ask OHA candidates what they think about how OHA is run.  Question them on their ideas to improve the office and the services we provide.  Vote wisely or we’ll continue to be stuck in the same stagnation for years to come.  Our beneficiaries deserve better!  Aloha Ke Akua.

Wrapping-up a historic year for OHA

Congratulations to all of the public servants elected in 2012.  Campaigning can be a grueling process.  I look forward to working with all of you in the 2013 Legislative Session to better the conditions of Native Hawaiians.

New Maui Trustee and OHA CEO

OHA began the year by welcoming new Maui Trustee, Carmen “Hulu” Lindsey, who was appointed by Governor Neil Abercrombie.  Trustee Lindsey brought a much needed burst of new energy to the board with her knowledge, experience, and willingness to give her all for our beneficiaries.

OHA’s Administration underwent major changes with the appointment of Dr. Kamana’opono Crabbe as its new Ka Pouhana/CEO.  I have been impressed by his exemplary work over the past eight months and I look forward to the positive changes he will bring to OHA in the coming year.

Appointed BAE Vice-Chair & Served as a Legislative Liaison

I was honored to be appointed Vice-Chair of the Committee on Beneficiary Advocacy and Empowerment (BAE), one of only two subject-matter committees under the Board.  I worked closely with BAE Chair, Trustee John Waihe’e IV, on legislation and on-going programs.  I also continued to serve as one of two “Legislative Liaisons” appointed by Trustee Waihe’e for the 2012 legislative session.

Protecting Kuleana Land Property Tax Exemptions

On November 22, 2011, the Star-Advertiser reported that the Real Property Tax Advisory Commission recommended that the City & County of Honolulu eliminate property tax exemptions for about 150,000 Oahu homeowners, including Kuleana Land owners.

On January 23, 2012, I testified before, the City Council’s Budget Committee hearing on the Real Property Tax Advisory Commission’s Report.  I explained the heartbreaking history of Kuleana Lands and stressed to the Budget Committee Chair, Councilmember Ann Kobayashi, that OHA strongly opposed the proposal.  Thankfully, the matter was dropped (for now at least).  Upon Councilmember Kobayashi’s recommendation, I worked to get the State Legislature to pass a resolution supporting the protection and preservation of Kuleana Lands.

On April 10, 2012, the State Senate adopted Senate Resolution (SR) 33 which urged the counties to preserve property tax exemptions for Kuleana Lands.  I would like to offer my sincere thanks to Senator Malama Solomon who introduced SR 33, and Senators Brickwood Galuteria, Gilbert Kahele, Donovan Dela Cruz, and Michelle Kidani for signing onto the resolution.  I would like to give a big Mahalo to OHA staff members Breann Nu’uhiwa, Sterling Wong, Jim McMahon & Luci Meyer for all their efforts to get this resolution passed.

I would also like to send a special Mahalo to Representative Faye Hanohano for introducing the House versions of the resolutions, HCR 117 & HR 89.  However, Speaker Calvin Say killed both resolutions in the Finance Committee so we need to try again next year.

Settlement Bill Passes

On April 11, 2012, in an emotional ceremony at Washington Place, Governor Abercrombie signed the historic $200 million settlement between the State and OHA.  After many years of negotiations, OHA finally resolved all claims that were raised with the State relating to its portion of income from the public land trust from November 7, 1978 to June 30, 2012 on past due amounts owed.  The State has now fulfilled its constitutional obligations to Native Hawaiians by providing OHA with fee simple title to lands in Kakaako makai.  The proposal will not affect any other claims against the state.

Happy Thanksgiving

May each and every one of you have a safe and happy Thanksgiving full of wonderful food, family and friends.  Aloha Ke Akua.

The need for fiscal responsibility

`Ano`ai kakou…  On May, 30, 2012, the Star Advertiser reported that the state Council on Revenues lowered the revenue projection for next fiscal year, which prompted Governor Abercrombie’s administration to cut back the state’s spending.

This is not surprising.  When revenues are down, everyone cuts back on spending.  Everyone except OHA.

Trustees Keep on Spending

Our new CEO, Ka Pouhana Kamana’opono Crabbe, has been working diligently to cut our budget wherever possible and to streamline operations to save money, but there are still Trustees who insist on spending more.

This extra spending puts enormous pressure on our dwindling resources at a time when OHA has already accepted major financial commitments such as Waimea Valley, ownership of the Kaka’ako Makai Settlement Properties, and other commitments such as the $3 million/per year for 30-years debt service for the Department of Hawaiian Home Lands and funding for organizations such as Alu Like, Inc. and the Native Hawaiian Legal Corporation that have made their way into our annual budget.  These are huge amounts of revenues being contracted to these entities.  Add to this the grants and annual operational expenses and we are maxed out.

A Constant Issue

Overspending has been a longstanding problem at OHA.  In April of 2004, our money committee chair asked for a legal opinion that would allow OHA to spend more of the Native Hawaiian Trust Fund.  He even questioned whether it’s even appropriate to build the Trust at all.

I have consistently argued against OHA’s 5% spending policy and strongly recommended that it be reduce instead to 4%, at least until the economy fully recovers again.  Even Kamehameha Schools operates at a lower spending rate than 5%.

Fiscal Restraint

In these tough economic times, there are nearly a hundred nonprofit organizations asking for OHA grants each year.  While giving the money away will make OHA very popular in the short-term, we should be focusing on the long-term health of the Native Hawaiian Trust Fund.

We have worked carefully for two decades to build the Trust to over $300 million.  I would hate to see this relatively modest amount shrink down to nothing in shortsighted spending sprees that forces us to realign our budget several times a year and draw more money from our corpus (trust).  What other organization does this?

Greater Transparency

State law (Hawaii Revised Statutes §10-14.5 on budget preparation and submission; auditing, Section b) requires that: “The (OHA) board shall provide opportunities for beneficiaries in every county to participate in the preparation of each biennial and supplemental budget of the office of Hawaiian affairs. These opportunities shall include an accounting by trustees of the funds expended and of the effectiveness of programs undertaken.”

I have recommended time and time again that OHA needs to take its proposed budget out to the community so that our beneficiaries can give us their input as well as tell us what their needs are.

This was the common practice of OHA in the past and I believe it helped OHA to develop a budget that was more in-sync with our beneficiaries’ concerns.

I will continue to press OHA’s money committee chair to take our next proposed budget out to the community, as required by law, including the neighbor islands.

So which path will OHA’s leadership take?

It has long been understood that OHA is a “temporary” organization that will someday be dissolved and its assets transferred over to the new Hawaiian Nation.

So the critical policy question is: “Will OHA continue to be a ‘temporary’ organization that will give the Hawaiian Nation the assets it needs to survive or will OHA continue to spend freely and shrink the Trust Fund?”

OHA desperately needs Trustees who will make the tough decision to focus on building towards a more permanent, long-term goal instead of taking the easy and popular path of short-sighted spending.

In this election year, OHA beneficiaries should look carefully at the candidates running for OHA Trustee and choose individuals who will take OHA in a more fiscally responsible direction.

What has been sorely lacking is for Trustees to prioritize our spending and focus on the things that our beneficiaries need and NOT use OHA’s “Strategic Plan,” which is at best a wish list of too many things and does not focus on the top priorities of our people.

NOT listing priorities leaves the door wide open for certain Trustees to continue to fund anything and everything while neglecting meaningful programs in healthcare and housing.

As long as trustees keep drawing money out of our corpus, or trust fund, we are taking money away from future generations of Hawaiians.  After all, what is a nation without assets?  Aloha Ke Akua.