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OHA and DHHL Cost to State of Hawaii Treasury: $1 Billion to Date. Estimate for Next Ten Years: $2 Billion More at the Current Expenditure Rate. See Spreadsheets On This Webpage for Details.


Research done for plaintiffs in the Arakaki2 lawsuit in the Summer of 2002 revealed huge amounts of money being diverted to the Office of Hawaiian Affairs (OHA) and the Department of Hawaiian Homelands (DHHL), which implements the Hawaiian Homes Commission Act. This is money which otherwise could have been spent for public schools or for other public purposes for the benefit of all the people of Hawaii without racial discrimination.

An itemized compilation of the cost of OHA is provided on Sheet 1 followed by the backup detail on Sheet 2. After that comes a single spreadsheet itemizing the cost of DHHL. Here are some shocking "bottom line" figures:

From July 1 1990 to June 30, 2002, plus the two years since then, the combined damage to the state's treasury from OHA and DHHL has been over $1 Billion. Note that this figure does not include costs from before 1990 (OHA was created in 1978, and DHHL was created in 1921). At the current expenditure rate, making reasonable assumptions, the projected damage for the next 10 years (Fiscal Years Ending June 30, 2005 through 2014) would be more than two Billion additional dollars.

Plaintiffs' attorney H. William Burgess and his wife Sandra Puanani Burgess, who is also a plaintiff, published a letter to editor on July 13, 2004, explaining that OHA and DHHL are huge money-losers for the State of Hawai'i.

--------------

http://www.hawaiireporter.com/story.aspx?a50d4138-45d0-4fdf-b9a8-14a89bf53513
Hawaii Reporter (on-line), July 13, 2004

Akaka Bill Does Not Level Playing Field for People of Hawaii

By H. William Burgess and Sandra Puanani Burgess

The Honolulu Advertiser editorial of July 9, 2004, "Fate of Akaka bill threatens programs" asserts "Federal programs for Hawaiians generate millions of dollars each year for Hawaii." We respectfully disagree.

The Hawaiian Homes Commission Act is mandated but not funded by the federal government. It costs the State treasury about $60 million per year in appropriations, debt service and lost revenues. OHA, whose proponents claimed was mandated by the Admission Act, drains about another $22 million per year.

This about $82 million per year enriches lawyers, lobbyists, PR consultants, investment advisers, media and other purveyors of advertising, and bureaucrats whose livelihoods depend on keeping Hawaiians in a state of dependency. The small amount that trickles down to the beneficiaries goes almost entirely to a small number of elite, already well-off Hawaiians. (For example, Kalawahine Streamside "homesteads" worth $380 thousand plus several years ago.)

When and if the Plaintiffs finally prevail in Arakaki v. Lingle:

* DHHL and OHA will be dismantled;

* Existing Hawaiian homesteaders will be allowed to own their land at well below market value and, rather than being "wards", will own their growing home equity with the same joys, responsibilities and pride as other homeowners. (Imagine if Arakaki v. Lingle, filed in March 2002, had been adjudicated with reasonable promptness in the trial court and Plaintiffs prevailed and the about 7,000 homesteaders had acquired the fee simple interest in their lots by the Summer of 2003, every one of them would today be much richer because of the remarkable rise in residential real estate values in Hawaii this year.)

* Hundreds of millions will immediately become available for public schools;

* Federal and state programs can be provided that will actually aid the needy without regard to race; and

* We will all play by the same rules.

-------------

Legal note: The spreadsheets below were submitted to the District Court on September 18, 2002 Docket 208 as exhibits in support of Plaintiffs' motion to reconsider and clarify the order dismissing the U.S. The spreadsheets were also filed in the Ninth Circuit on June 12, 2004 as Exhibits 6 and 7 to plaintiffs' opposition to the State's and OHA's motions for extensions of time to file their answering briefs. See page 10 of the plaintiffs' opposition, posted in the Arakaki2 webpage for the 9th Circuit appeal. The spreadsheets are also identified specifically in the declaration of counsel accompanying the opposition.

For the history of the Arakaki2 lawsuit at both the District Court and 9th Circuit Court of Appeals, including many legal documents and news reports, see:
http://www.angelfire.com/hi2/hawaiiansovereignty/arakaki2ohadhhl.html

A related webpage lists about 160 other government racial entitlement programs for ethnic Hawaiians, and identifies some of the hundreds of millions of dollars spent on some of those programs during a period of a few years. The purpose of the Akaka bill is to keep such programs racially exclusionary. All of those programs (mostly federally funded) could easily be made race-neutral -- offered for the benefit of all needy persons in Hawai'i regardless of ancestry. See:
http://www.angelfire.com/hi2/hawaiiansovereignty/listhawnentitlements.html

SCROLL TO THE RIGHT AND LEFT AS NEEDED TO SEE THE FULL WIDTH OF THE SPREADSHEETS

----------------

Sheet1

  A B C D
1

Cost of OHA to State Treasury, Twelve Years - 7/1/90 - 6/30/2002

     
2

(Including expenditures, debts incurred and loss of revenues)

     
3        
4

Description

Amount

MOF

Reference

5        
6

Appropriations from General Fund for OHA

     
7

FY 1990-91 "appropriated out of general revenues of State"

7,200,000

 

Act 304 SLH 1990 S. 11

8

" "

500,000

 

" S.12

9

"

1,971,836

A

Act 113 SLH 1990

10

FY 1991-02

3,491,703

A

Act 301 SLH 1991

11

FY 1992-93 "of general fund appropriation for statewide planning"

5,000,000

 

Act 300 SLH 1992 S5

12

"

3,423,222

A

Act 301 SLH 1991

13

FY 1993-94

3,580,204

A

Act 253 SLH 1994

14

FY 1994-95

3,438,125

A

"

15

FY 1995-96

3,496,698

A

Act 176 SLH 1996

16

FY 1996-97

2,772,596

A

"

17

FY 1997-98

2,772,596

A

Stipulated Facts 7/08/2002

18

" "There is appropriated out of the general revenues"

15,100,000

 

Act 329 SLH 1997

19

FY 1998-99

2,710,897

A

Stipulated Facts 7/08/2002

20

" "There is appropriated out of the general revenues"

15,100,000

 

Act 329 SLH 1997

21

FY 1999-00

2,550,922

A

Stipulated Facts 7/08/2002

22

FY 2000-01

2,519,663

A

"

23

FY 2001-02

2,619,663

A

"

24        
25

Debt service paid from General Fund on Bonds for OHA, from FY 1994 - April 1, 2002

91,533,356

 

Attachment 7, State Answers to interrog dtd 4/11/2002

26

Total paid for OHA from General Fund 7/1/90-6/30/02

169,781,481

   
27        
28

Still owed by General Fund for same period

     
29

Outstanding Principal G.O Bonds 4/1/2002

95,854,080

 

Attachment 7, State Ans interrog

30

Total Paid from General Fund 7/1/90 - 6/30/02 and still owed by General Fund as of 6/30/2002

$265,635,561

   
31        
32

Transfer of Public Land Revenues to OHA

     
33

FY 1990-91

1,971,833

B

Act 113 SLH 1990

34

FY 1991-92

3,491,700

B

Act 301 SLH 1991

35

FY 1992-93

3,423,221

B

"

36

FY 1993-94

3,952,886

B

Act 253 SLH1994

37

FY 1994-95

3,898,247

B

"

38

FY 1995-96

3,956,823

B

Act 176 SLH 1996

39

FY 1996-97

4,762,093

T

"

40

FY 1997-98

5,009,441

T

Act 240 SLH 1997

41

FY 1998-99

4,842,041

T

"

42

FY 1999-00

4,048,124

T

Act 147 SLH 1999

43

FY 2000-01

4,016,866

T

"

44

FY 2001-02

4,446,029

T

Act 2 Sp SLH 2001

45

 

     
46        
47

Balance still owed 6/30/02 on Revenue Bonds - $100M appr FY 1997-98 & $25M appr FY 2000-01?

15,000,000

 

Act 116, SLH 1998; Act 281 SLH 2000 - Balance estimate

48        
49

Loss of dividend and interest income

     
50

FY 1990-91

671,492

 

OHA Ann Rept FY 1990-91

51

FY 1991-92

842,856

 

OHA Ann Rept FY 1991-92

52

FY 1992-93

1,181,983

 

OHA Ann Rept FY 1992-93

53

FY 1993-94

5,216,977

 

OHA Ann Rept FY 1993-94

54

FY 1994-95

8,199,984

 

OHA Ann Rept FY 1994-95

55

FY 1995-96

8,802,574

 

OHA Ann Rept FY 1995-96

56

FY 1996-97

9,513,999

 

OHA Ann Rept FY 1996-97

57

FY 1997-98

10,857,620

 

OHA Ann Rept FY 1997-98

58

FY 1998-99

10,626,578

 

OHA Ann Rept FY 1998-99

59

FY 1999-00

10,798,857

 

OHA Ann Rept FY 2000-01

60

FY 2000-01

11,465,433

 

OHA Ann Rept FY 2000-01

61

FY 2001-02

11,000,000

 

Estimate based on prior years

62        
63

Approximate total Injury to Taxpayers' Pocketbooks Caused by OHA 7/1/90 - 6/30/2002, Including Expenditures, Debts Incurred and Loss of Revenues

$417,633,218

   
64        
65        
66

Threatened Future Cost of OHA to State Fisc

     
67

(Including expenditures, debts to be incurred and loss of revenues)

     
68        
69

Threatened Injury caused by OHA to Taxpayers' Pocketbooks during FY 2002-03

     
70

FY 2002-03 (General Fund)

2,532,663

A

Stipulated Facts 7/08/2002

71

Appropriations FY 2002-03 MOF T (Trust Funds) (Note: Payable only if legislature enacts new law to replace Act 304)

4,029,866

T

Act 2 SpSLH 2001

72

Estimated Loss of Dividend/Interest Income

11,000,000

 

Estimate based on prior year

73

General Fund Debt service to be paid for OHA Bonds

5,000,000

 

Estimate based on prior year

74

Total threatened injury FY 2002-03

$ 22,562,529

   
75        
76

Projected future injury during next 12 years (after FY 2002-03) if OHA is not invalidated and legislature enacts new law to replace Act 304 - 12 more years at about $22M per year

$264,000,000

   
77        
78

Threatened Injury if legislature enacts new law to replace Act 304 retroactive to fiscal years 1980 - 1991

$ 1,000,000,000

 

Estimated amount based on offer made by Governor to pay OHA another $251 million plus 360,000 acres of ceded lands, as stated by former OHA Chair.

79

Probable Total future injury to taxpayers' Pocketbooks if OHA allowed to continue.

$ 1,286,562,529

   
80        
81        
82        
83        
84        
85        
86        
87        
88        
89        
90        
91        
92        
93        
94        





Sheet2

  A B C D E F G H I J K L
1

Calculation of total amounts appropriated for OHA each year

                     
2

(Legislature does not provide annual totals.)

                     
3                        
4

Act 2 Sp SLH 2001

         

Act 147 SLH 1999

         
5

FY 2001-02

   

FY 2002-03

   

FY 1999-00

   

FY 2000-01

   
6

A: General Funds

T: Trust Funds

 

A: General Funds

T: Trust Funds

 

A: General Funds

T: Trust Funds

 

A: General Funds

T: Trust Funds

 
7

26,761

106,990

 

26,761

106,990

 

212,593

623,595

 

212,593

623,595

 
8

920,846

1,947,106

 

833,846

1,530,943

 

301,488

487,318

 

301,488

487,318

 
9

1,021,547

1,396,089

 

1,021,547

1,396,089

 

190,670

275,000

 

190,670

275,000

 
10

650,509

995,844

 

650,509

995,844

 

362,730

408,355

 

362,730

408,355

 
11

2,619,663

4,446,029

 

2,532,663

4,029,866

 

230,153

422,575

 

198,894

391,317

 
12            

4,540

86,960

 

4,540

86,960

 
13            

41,561

89,199

 

41,561

89,199

 
14            

530,843

636,447

 

530,843

636,447

 
15            

395,475

613,494

 

395,475

613,494

 
16            

244,876

307,769

 

244,876

307,769

 
17            

35,993

97,412

 

35,993

97,412

 
18            

2,550,922

4,048,124

-

2,519,663

4,016,866

 
19                        
20                        
21

Act 329 SLH 1997, Sec. 7

         

Act 240 SLH 1997

         
22

FY 1997-98

   

FY 1998-99

   

FY 1997-98

   

FY 1998-99

   
23

A: General Funds

T: Trust Funds

 

A: General Funds

T: Trust Funds

 

A: General Funds

T: Trust Funds

 

A: General Funds

T: Trust Funds

 
24

15,100,000

   

15,100,000

   

280,257

883,247

 

280,257

883,247

 
25            

436,082

800,835

 

436,082

650,935

 
26            

190,246

247,311

 

190,246

247,311

 
27            

361,770

408,980

 

361,770

408,980

 
28            

196,567

419,247

 

196,567

401,747

 
29            

4,540

250,976

 

4,540

250,976

 
30            

41,045

113,899

 

41,045

113,899

 
31            

529,744

642,746

 

529,744

642,746

 
32            

392,260

621,734

 

392,260

621,734

 
33            

305,329

474,298

 

243,630

474,298

 
34            

34,756

146,168

 

34,756

146,168

 
35            

2,772,596

5,009,441

-

2,710,897

4,842,041

 
36                        
37                        
38                        
39                        
40                        
41

Act 176 SLH 1996

         

Act 253 SLH 1994

         
42

FY 1995-96

   

FY 1996-97

   

FY 1993-94

   

FY 1994-95

   
43

A: General Funds

B: Special Funds

 

A: General Funds

T: Trust Funds

 

A: General Funds

B: Special Funds

 

A: General Funds

B: Special Funds

 
44

567,272

569,675

 

280,257

876,153

 

434,669

457,069

 

411,040

413,440

 
45

510,672

515,119

 

436,082

614,648

 

537,559

540,981

 

541,987

546,434

 
46

225,150

227,001

 

190,246

272,764

 

226,657

228,362

 

229,207

231,058

 
47

382,891

384,877

 

361,770

408,185

 

392,776

394,763

 

407,891

409,877

 
48

263,760

279,460

 

196,567

349,816

 

237,699

253,401

 

282,748

298,448

 
49

4,599

249,897

 

4,540

249,897

 

4,599

199,897

 

4,599

249,897

 
50

61,832

87,029

 

41,045

113,016

 

66,102

91,298

 

62,699

87,896

 
51

582,138

584,044

 

529,744

640,968

 

583,370

585,276

 

583,370

585,276

 
52

493,675

507,451

 

392,260

618,300

 

512,744

526,521

 

504,875

518,651

 
53

345,815

439,430

 

305,329

473,250

 

449,991

540,024

 

350,815

444,430

 
54

58,894

112,840

 

34,756

145,096

 

134,038

135,294

 

58,894

112,840

 
55

3,496,698

3,956,823

 

2,772,596

4,762,093

 

3,580,204

3,952,886

 

3,438,125

3,898,247

 
56                        
57                        
58                        
59                        
60                        
61                        
62                        
63

Act 301 SLH 1991

         

Act 113 SLH 1990

         
64

FY 1991-92

   

FY 1992-93

   

FY 1989-90

   

FY 1990-91

   
65

A: General Funds

B: Special Funds

 

A: General Funds

B: Special Funds

 

A: General Funds

B: Special Funds

 

A: General Funds

B: Special Funds

 
66

418,321

418,321

 

420,421

420,422

 

468,330

309,809

 

297,184

297,184

 
67

634,347

634,347

 

575,705

575,705

 

305,913

305,912

 

356,476

356,476

 
68

239,832

239,831

 

219,265

219,265

 

150,558

150,557

 

152,584

152,584

 
69

447,973

447,972

 

446,645

446,644

 

151,086

151,086

 

72,745

72,744

 
70

248,333

248,333

 

216,181

216,180

 

149,813

149,813

 

156,300

156,299

 
71

91,752

91,752

 

88,252

88,252

 

62,591

62,591

 

70,606

70,606

 
72

102,441

102,440

 

70,082

70,082

 

144,087

144,087

 

185,507

185,507

 
73

562,682

562,682

 

637,564

637,564

 

309,024

309,023

 

320,023

320,022

 
74

439,145

439,145

 

432,708

432,708

 

172,801

172,800

 

180,020

180,020

 
75

276,019

276,019

 

283,255

283,255

 

152,539

152,539

 

180,391

180,391

 
76

30,858

30,858

 

33,144

33,144

 

2,066,742

1,908,217

 

1,971,836

1,971,833

 
77

3,491,703

3,491,700

 

3,423,222

3,423,221

             





  A B C D
1

Cost of HHC/DHHL to State Treasury Seven Years - 7/1/95 - 6/30/2002

     
2

(Including expenditures, debts incurred and loss of revenues)

     
3        
4

Description

Amount

MOF

Reference

5        
6

Appropriations from General fund

     
7

FY 1995-96 "out of general revenues of State of HI"

2,348,558

 

Act 14 SpSLH 1995 S.9

8

" "

2,390,000

 

" S.10

9

" "

1,539,000

 

" S.11

10

"

2,128,851

A

Act 287 SLH 1996 - Supp Appr Act

11

FY 1996-97

1,569,838

A

"

12

FY 1997-98

1,493,016

A

Act 116 SLH 1998

13

FY 1998-99

1,347,684

A

"

14

FY 1999-00

1,298,554

A

Act 281 SLH 2000 - Supp Appr Act

15

FY 2000-01

1,298,554

A

"

16

FY 2001-02

1,359,546

A

Act 259 SLH 2001 - Gen Appr Act

17        
18

Debt service paid from General Fund for HHLTF from FY1997-98 - April 1, 2002

35,148,475

 

Attachment 9, DHHL Answers to interrog dtd 4/11/2002

19

Total paid from General Fund 7/1/95 - 6/30/2002

$51,922,076

   
20        
21

Liability Imposed on General Fund same period

     
22

Balance of $15 million for HHLTF paid 6/30/02 from General Obligation Bond fund.

15,000,000

C

Decl Neal Miyahira, Dir Finance filed 3/7/02 - Act 259

23        
24

Outstanding Principal G.O Bonds 4/1/2002

126,277,235

 

Attachment 9, DHHL Ans interrog

25

Total Paid from General Fund 7/1/95 - 6/30/02 and still owed by General Fund as of 6/30/2002

$193,199,310

   
26        
27

Additional Payments & Transfers for HHLTF

     
28

Appr fr moneys on dep in homes revolving fund FY 1995-96 for HHLTF

30,000,000

 

Act 14 SpSL 1995 S.8(a)

29        
30

Land in lieu of cash for FY 1996-97 and FY1997-98 for HHLTF. (Discount for early pay't. Amt?)

60,000,000

 

Decl Neal Miyahira, Dir Finance filed 3/7/02

31

Total Paid from & still owed by General Fund plus Additional Payments & Transfers for HHLTF 7/1/95 - 6/30/2002

$283,199,310

   
32        
33

Loss of revenues - General leases, licenses, permits

     
34

FY 1995-96 - General leases

5,297,775

 

DHHL Ann Rept FY 1995-96

35

Licenses & permits

4,442,849

 

"

36

FY 1996-97 - General leases

6,347,106

 

DHHL Ann Rept FY 1996-97

37

Licenses & permits

1,224,542

 

"

38

FY 1997-98 - General Leases

6,637,660

 

DHHL Ann Rept FY 1997-98

39

Licenses & permits

1,087,529

   
40

FY 1998-99 - General Leases

7,138,142

 

DHHL Ann Rept FY 1998-99

41

Licenses & permits

1,516,431

   
42

FY 1999-00 - General leases

6,892,252

 

DHHL Ann Rept FY 1999-00

43

Licenses & permits

1,219,079

 

"

44

FY 2000-01 - General leases

6,150,520

 

DHHL Ann Rept FY 2000-01

45

Licenses & permits

984,598

 

"

46

FY 2001-02

6,013,558

B

Act 259 SLH 2001 - Gen Appr Act

47

 

     
48        
49

Balance still owed 6/30/02 on Revenue Bonds - $100M appr FY 1997-98 & $25M appr FY 2000-01?

15,000,000

 

Act 116, SLH 1998; Act 281 SLH 2000 - Balance estimate

50        
51

Loss of fair rental value of homestead leases - FY 1995-96 through FY 2001-02

35,000,000

 

Estimate 5,000 leases @ $1,000/yr for 7 years

52        
53

Loss of interest/investment income

     
54

FY 1995-96

5,297,775

 

DHHL Ann Rept FY 1995-96

55

FY 1996-97

6,028,545

 

DHHL Ann Rept FY 1996-97

56

FY 1997-98

5,975,173

 

DHHL Ann Rept FY 1997-98

57

FY 1998-99

5,572,311

 

DHHL Ann Rept FY 1998-99

58

FY 1999-00

6,675,682

 

DHHL Ann Rept FY 1999-00

59

FY 2000-01

6,898,757

 

DHHL Ann Rept FY 2000-01

60

FY 2001-02

6,000,000

 

Estimate based on prior years

61        
62

Approximate total Injury to Taxpayers' Pocketbooks Caused by HHC/DHHL 7/1/95 - 6/30/2002, Including Expenditures, Debts Incurred and Loss of Revenues

$430,599,594

   
63        
64

Threatened Future Cost to State Fisc as of 6/30 2002

     
65

(Including expenditures, debts to be incurred and loss of revenues)

     
66        
67

Threatened Injury to Taxpayers' Pocketbooks during FY 2002-03

     
68

Appropriations FY 2002-03 MOF A (General Fund)

1,291,569

A

Act 177 Supplemental Appropriations Act of 2002

69

Appropriations FY 2002-03 MOF B (Special Funds)

6,034,216

B

Act 177 Supplemental Appropriations Act of 2002

70

Appropriations FY 2002-03 MOF C (G.O. Bond Fund)

30,000,000

C

Act 177 Supplemental Appropriations Act of 2002

71

Estimated Loss of Interest/Investment Income

6,000,000

 

Estimate based on prior year

72

Estimated fair rental value, 7,000 Homestead leases @ $1,000 per year

7,000,000

   
73

General Fund Debt service for HHLTF Est. for FY 2003

10,283,310

 

Estimate based on prior year

74  

60,609,095

   
75

Projected future injury during next 12 years after FY 2002-03 if Hawaiian Homes is not invalidated and Act 14 SpSLH 1995 is not enjoined - 12 more years at about $60M per year

$720,000,000

   
76        
77

Probable future injury to taxpayers' Pocketbooks if Hawaiian Homes allowed to continue.

$780,609,095

   
78