LeMahieu: Felix panel judgments too harsh

By Kevin Dayton
Advertiser Capitol Bureau Chief

The investigating committee that helped end the tenure of former Schools Superintendent Paul Le-Mahieu assigned "sinister intentions" to people where there was no real wrongdoing, LeMahieu said in a letter to the committee.

In a response to the committee's draft final report, LeMahieu acknowledged the committee uncovered problems with the way the federal court's Felix consent decree was administered.

But he said there was no improper awarding of contracts, nor any efforts to spend money for inappropriate purposes.

"Not all decisions with which we might disagree constitute wrongdoing," LeMahieu wrote. "Similarly, not every action taken in an unusual manner is mismanagement. Not even every mistake is an error deserving of the severest punishment."

LeMahieu resigned in October and admitted he "crossed the line" in his personal relationship with Kaniu Kinimaka-Stocksdale, owner of the Hilo, Hawai'i-based company Na Laukoa, which was awarded a special-education contract.

LeMahieu said the committee "rightfully" scrutinized the contract, but said there was no wrongdoing because his "personal indiscretion" occurred after the contract was awarded.

He also said a three-person panel was formed to review the proposal and the qualifications of Kinimaka-Stocksdale's company, and two of the three panelists voted in favor of the contract.

The Joint Senate-House Investigative Committee dealing with the Felix consent decree wrapped up its work for the year yesterday by approving a final report, which will include LeMahieu's response to the committee's draft report.

The committee has been scrutinizing spending for the Felix decree, which requires that the state improve mental-health services to children. The state now spends about $400 million a year on that effort, said Sen. Colleen Hanabusa, co-chair of the committee.

Lawmakers said they want to prevent waste and mismanagement, but LeMahieu said the message is: "Never seek to innovate or advocate the unusual."

"That sort of risk taking is what is most needed in a system struggling to reform itself," LeMahieu wrote.

Hanabusa, D-21st (Kalaeloa, Makaha), said she expects lawmakers will agree to reauthorize the committee next year. If they do, the committee could meet again during the next legislative session in January.

The committee has legal challenges pending to try to press ahead with witness subpoenas that were blocked by federal Judge David Ezra.

Committee Co-chair Rep. Scott Saiki said the committee has "only scratched the surface."

Saiki, D-20th (Kapahulu, Mo'ili'ili), said he believes the court and the state departments focused on complying with benchmarks instead of federal law that describes what services must be provided the mentally disabled.

The benchmarks were developed by officials working for the court, and Saiki said he remains convinced officials used the consent decree as leverage.

"Everybody came in with their pet projects, and used the consent decree as a means of financing these projects," Saiki said.

Saiki said there is nothing wrong with the state going beyond what is required by federal law. However, he said, "I don't think that the parties to the lawsuit, that the state departments, should be using the consent decree as a means of taking advantage of the situation.

"I think basically what has happened is the interested parties have used the consent decree to their advantage, and they've abused the consent decree because they come into the Legislature and threaten us with contempt if we don't fund these cost items."

Reach Kevin Dayton at kdayton@honoluluadvertiser.com or 525-8070.