Posted on: Friday, August 3, 2001

OHA approves $35.8 million budget

By Yasmin Anwar
Advertiser Staff Writer

The Office of Hawaiian Affairs yesterday approved a robust operating budget that provides financing for scholarships, low-income housing, substance abuse prevention and other good works.

Trustees voted 5-3 in favor of a budget totaling $35.8 million over two years, with $19.6 million allocated for 2002, and $16.2 million for 2003.

Included is $776,000 for a "Post-Rice" campaign to protect the 21-year-old state agency from constitutional challenges in the wake of last year's U.S. Supreme Court ruling striking down OHA's Hawaiians-only voting restriction.

That calls for $200,000 for lobbying efforts to gain federal recognition of Native Hawaiians; $140,000 for a two-person Washington, D.C., office; $150,000 for community meetings and other forms of outreach; and $211,000 for a media campaign that includes radio, television and newspaper advertisements.

Voting for the budget were Haunani Apoliona, Colette Machado, Donald Cataluna, John Waihe'e IV and Oswald Stender.

"At least we can meet some of the pressing needs of our beneficiaries," said Stender, who is chairman of the budget and finance committee, but threatened to resign from that post yesterday after Clayton Hee indirectly accused him of possible conflicts of interest. Hee argued that OHA trustees may not be exempt from a law that says only lawmakers can provide grants with state money, and that OHA grant allocations would likely be subject to state procurement laws.

Supporters said OHA is mandated to distribute grants for the betterment of Hawaiians. As yet, there is no written ruling from the Attorney General's Office

Hee also said he was uncomfortable with the possible perception of impropriety,citing Stender's position as chairman of High Tech Hawaii Inc., which is bidding for a contract to carry out a ceded land inventory.

Stender also is an officer with the American Land Company Ltd., which had moved to represent OHA last year when interim trustees expressed interest in purchasing the old U.S. Post Office and Courthouse.

Stender responded that his affiliation with both companies preceded his election to the OHA board, and said he has made full disclosures of any potential conflict of interest. He said he would resign as chairman of the budget and finance committee, but changed his mind after several trustees urged him to reconsider.