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.
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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:
https://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:
https://www.angelfire.com/hi2/hawaiiansovereignty/listhawnentitlements.html
SCROLL TO THE RIGHT AND LEFT AS NEEDED TO SEE THE FULL WIDTH OF THE SPREADSHEETS
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Cost of OHA to State
Treasury, Twelve Years - 7/1/90 - 6/30/2002
(Including
expenditures, debts incurred and loss of revenues) Description Amount MOF Reference Appropriations
from General Fund for OHA FY 1990-91 "appropriated out of general revenues of
State" 7,200,000 Act 304 SLH 1990
S. 11
" " 500,000 " S.12
" 1,971,836 A Act 113 SLH 1990 FY 1991-02
3,491,703 A Act 301 SLH 1991 FY 1992-93 "of general fund appropriation for statewide
planning" 5,000,000 Act 300 SLH 1992
S5 " 3,423,222 A Act 301 SLH 1991 FY 1993-94
3,580,204 A Act 253 SLH 1994 FY 1994-95 3,438,125 A " FY 1995-96
3,496,698 A Act 176 SLH 1996 FY 1996-97 2,772,596 A " FY 1997-98 2,772,596 A Stipulated
Facts 7/08/2002 " "There is appropriated out of the general
revenues" 15,100,000 Act
329 SLH 1997 FY 1998-99 2,710,897 A Stipulated
Facts 7/08/2002 " "There is appropriated out of the general
revenues" 15,100,000 Act
329 SLH 1997 FY 1999-00 2,550,922 A Stipulated
Facts 7/08/2002 FY 2000-01 2,519,663 A " FY 2001-02 2,619,663 A " 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 Total paid for OHA
from General Fund 7/1/90-6/30/02 169,781,481 Still owed by General
Fund for same period Outstanding Principal
G.O Bonds 4/1/2002 95,854,080 Attachment 7, State
Ans interrog 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 Transfer of Public
Land Revenues to OHA FY 1990-91 1,971,833 B Act 113 SLH 1990 FY 1991-92 3,491,700 B Act 301 SLH 1991 FY 1992-93 3,423,221 B " FY 1993-94 3,952,886 B Act 253 SLH1994 FY 1994-95 3,898,247 B " FY 1995-96 3,956,823 B Act 176 SLH 1996 FY 1996-97
4,762,093 T " FY 1997-98
5,009,441 T Act 240 SLH 1997 FY 1998-99 4,842,041 T " FY 1999-00
4,048,124 T Act 147 SLH 1999 FY 2000-01 4,016,866 T " FY 2001-02
4,446,029 T Act 2 Sp SLH 2001
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 Loss of dividend
and interest income FY 1990-91 671,492 OHA Ann Rept FY 1990-91 FY 1991-92 842,856 OHA Ann Rept FY 1991-92 FY 1992-93 1,181,983 OHA Ann Rept FY 1992-93 FY 1993-94 5,216,977 OHA Ann Rept FY 1993-94 FY 1994-95 8,199,984 OHA Ann Rept FY 1994-95 FY 1995-96 8,802,574 OHA Ann Rept FY 1995-96 FY 1996-97 9,513,999 OHA Ann Rept FY 1996-97 FY 1997-98 10,857,620 OHA Ann Rept FY 1997-98 FY 1998-99 10,626,578 OHA Ann Rept FY 1998-99 FY 1999-00 10,798,857 OHA Ann Rept FY 2000-01 FY 2000-01 11,465,433 OHA Ann Rept FY 2000-01 FY 2001-02 11,000,000 Estimate based on
prior years 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 Threatened
Future Cost of OHA to State Fisc (Including
expenditures, debts to be incurred and loss of revenues) Threatened Injury caused by OHA
to Taxpayers' Pocketbooks during FY 2002-03 FY 2002-03 (General
Fund) 2,532,663 A Stipulated Facts
7/08/2002 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 Estimated Loss of
Dividend/Interest Income 11,000,000 Estimate based on
prior year General Fund Debt
service to be paid for OHA Bonds 5,000,000 Estimate based on
prior year Total
threatened injury FY 2002-03 $ 22,562,529 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 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. Probable Total future injury to
taxpayers' Pocketbooks if OHA allowed to continue. $
1,286,562,529 Calculation
of total amounts appropriated for OHA each year (Legislature
does not provide annual totals.) Act
2 Sp SLH 2001 Act
147 SLH 1999 FY
2001-02 FY
2002-03 FY
1999-00 FY
2000-01 A: General
Funds T: Trust
Funds A: General
Funds T: Trust
Funds A: General
Funds T: Trust
Funds A: General
Funds T: Trust
Funds 26,761 106,990 26,761 106,990 212,593 623,595 212,593 623,595 920,846 1,947,106 833,846 1,530,943 301,488 487,318 301,488 487,318 1,021,547 1,396,089 1,021,547 1,396,089 190,670 275,000 190,670 275,000 650,509 995,844 650,509 995,844 362,730 408,355 362,730 408,355 2,619,663 4,446,029 2,532,663 4,029,866 230,153 422,575 198,894 391,317 4,540 86,960 4,540 86,960 41,561 89,199 41,561 89,199 530,843 636,447 530,843 636,447 395,475 613,494 395,475 613,494 244,876 307,769 244,876 307,769 35,993 97,412 35,993 97,412 2,550,922 4,048,124 - 2,519,663 4,016,866 Act
329 SLH 1997, Sec. 7 Act
240 SLH 1997 FY
1997-98 FY
1998-99 FY
1997-98 FY
1998-99 A: General
Funds T: Trust
Funds A: General
Funds T: Trust
Funds A: General
Funds T: Trust
Funds A: General
Funds T: Trust
Funds 15,100,000 15,100,000 280,257 883,247 280,257 883,247 436,082 800,835 436,082 650,935 190,246 247,311 190,246 247,311 361,770 408,980 361,770 408,980 196,567 419,247 196,567 401,747 4,540 250,976 4,540 250,976 41,045 113,899 41,045 113,899 529,744 642,746 529,744 642,746 392,260 621,734 392,260 621,734 305,329 474,298 243,630 474,298 34,756 146,168 34,756 146,168 2,772,596 5,009,441 - 2,710,897 4,842,041 Act
176 SLH 1996 Act
253 SLH 1994 FY
1995-96 FY
1996-97 FY
1993-94 FY
1994-95 A: General
Funds B: Special
Funds A: General
Funds T: Trust
Funds A: General
Funds B: Special
Funds A: General
Funds B: Special
Funds 567,272 569,675 280,257 876,153 434,669 457,069 411,040 413,440 510,672 515,119 436,082 614,648 537,559 540,981 541,987 546,434 225,150 227,001 190,246 272,764 226,657 228,362 229,207 231,058 382,891 384,877 361,770 408,185 392,776 394,763 407,891 409,877 263,760 279,460 196,567 349,816 237,699 253,401 282,748 298,448 4,599 249,897 4,540 249,897 4,599 199,897 4,599 249,897 61,832 87,029 41,045 113,016 66,102 91,298 62,699 87,896 582,138 584,044 529,744 640,968 583,370 585,276 583,370 585,276 493,675 507,451 392,260 618,300 512,744 526,521 504,875 518,651 345,815 439,430 305,329 473,250 449,991 540,024 350,815 444,430 58,894 112,840 34,756 145,096 134,038 135,294 58,894 112,840 3,496,698 3,956,823 2,772,596 4,762,093 3,580,204 3,952,886 3,438,125 3,898,247 Act
301 SLH 1991 Act
113 SLH 1990 FY
1991-92 FY
1992-93 FY
1989-90 FY
1990-91 A: General
Funds B: Special
Funds A: General
Funds B: Special
Funds A: General
Funds B: Special
Funds A: General
Funds B: Special
Funds 418,321 418,321 420,421 420,422 468,330 309,809 297,184 297,184 634,347 634,347 575,705 575,705 305,913 305,912 356,476 356,476 239,832 239,831 219,265 219,265 150,558 150,557 152,584 152,584 447,973 447,972 446,645 446,644 151,086 151,086 72,745 72,744 248,333 248,333 216,181 216,180 149,813 149,813 156,300 156,299 91,752 91,752 88,252 88,252 62,591 62,591 70,606 70,606 102,441 102,440 70,082 70,082 144,087 144,087 185,507 185,507 562,682 562,682 637,564 637,564 309,024 309,023 320,023 320,022 439,145 439,145 432,708 432,708 172,801 172,800 180,020 180,020 276,019 276,019 283,255 283,255 152,539 152,539 180,391 180,391 30,858 30,858 33,144 33,144 2,066,742 1,908,217 1,971,836 1,971,833 3,491,703 3,491,700 3,423,222 3,423,221Sheet1
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