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The Honolulu Advertiser
Posted on: Friday, March 14, 2003

State to get federal aid for Pacific migrants

By Derrick DePledge
Advertiser Washington Bureau

WASHINGTON — The Bush administration yesterday offered $15 million a year over the next two decades to help Hawai'i, Guam, the Commonwealth of the Northern Mariana Islands and American Samoa deal with the growing costs of migration from the Republic of the Marshall Islands and the Federated States of Micronesia.

In a teleconference with Congressman Neil Abercrombie, D-Hawai'i, and officials from Hawai'i and the Pacific territories, federal officials also said yesterday they are working on a new compact with the Marshalls and Micronesia that could give them $150 million a year through 2023 to help improve their own medical and educational systems.

Hawai'i officials said yesterday the commitment for the state was a good starting point for negotiations, but far too low in light of costs private and public agencies here have borne.

"You can tell immediately that $15 million is not going to be enough," Abercrombie said. "Everybody knows that this is a start."

But the congressman indicated the $15 million commitment was probably all that could be expected at the moment from a nation on the verge of war and in economic distress.

'Can't close the door'

Hawai'i alone has been spending more than $20 million a year just for education and medical care for such immigrants, state officials say.

"We can't close the door when these people show up," said Dave Haywood, head of a hospital group called Hawaii Pacific Health.

"The loophole is that when these immigrants go on to our Medicaid program, the state doesn't receive any federal matching funds," Haywood said.

That's in contrast to the 58 cents the federal government contributes for every dollar spent in Medicaid and QUEST for other Hawai'i residents, he said.

"For all of the immigrants from compact nations, we don't get any reimbursement," he said.

The migrants are allowed to come to Hawai'i under terms of a federal compact with the Marshalls and Micronesia, but Hawai'i has ended up paying for almost all of the new social, medical and educational costs involved.

The existing compact, signed in 1986, allows migrants from the Marshall Islands and Micronesia to move freely within the United States and the territories. Many islanders migrate for economic or health reasons. Those who fail to improve their circumstances can place new burdens on fragile government health and social service programs.

Trust fund

A new compact being negotiated this year also will likely set up a trust fund that would be used for economic assistance to the Marshalls and Micronesia.

David Cohen, deputy assistant secretary at the Office of Insular Affairs, which oversees the territories for the U.S. Department of Interior, said the $15 million annual reimbursement would likely be divided among Hawai'i, Guam, American Samoa and the Marianas according to the number of migrants each has received in the past 10 years. One percent of the money will go to accurately measure the migrant population.

According to the latest available statistics from the federal government, there were 6,550 migrants from the Marshall Islands or Micronesia and their children on Guam, 5,509 migrants in Hawai'i and 1,755 in the Northern Mariana Islands. Those statistics are several years old.

Cohen said yesterday a new count expected this year would likely show that Hawai'i has had the most migrants recently.

Abercrombie said Congress may add more money once the true costs of migration are known.

Delegate Madeleine Z. Bordallo, D-Guam, said she will introduce legislation soon that would require the government to offset the actual costs of migration rather than cap costs at $15 million.

"It's disappointing to us," Bordallo said of the administration's proposal. "They are putting a cap on us, and we have to live with it for 20 years."

But congressional and local officials indicated they are pleased the Bush administration has recognized the costs of migration and is interested in providing a guaranteed amount of money each year rather than forcing Hawai'i, Guam and the other Pacific islands to appeal for aid during each budget cycle.

Healthcare, education

In Hawai'i, state officials believe that migrants account for $14 million a year in healthcare costs. An estimated 4,800 migrants are in the state's Med-Quest managed-care program, which spent $6.7 million on those migrants in fiscal year 2002.

An estimated 2,600 children of migrants attend Hawai'i schools, and many have language or learning barriers. The cost was estimated at $9 million a year in 1999.

Abercrombie said the Department of Education has spent about $78 million since 1988 on compact migrants' education.

Queen's Medical Center incurred an estimated $11.5 million in bad debt for care provided to such migrants, and Kapi'olani and Straub hospitals wrote off between $4 million and $5 million in such debt incurred by migrants last year alone, Abercrombie said.

Staff writer Walter Wright contributed to this report.