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The Honolulu Advertiser
Posted on: Monday, June 9, 2008

Governor must unclog grants-in-aid pipeline

Nonprofit organizations are feeling the pinch more acutely than ever these days, when an economic slowdown has siphoned off money for philanthropic giving while increasing social needs that the charities work to fill.

So it undoubtedly is painful for the charities that are on a list of 71 grants-in-aid from the state to wait nearly a year for Gov. Linda Lingle to release money appropriated by the Legislature.

Lawmakers made a public issue out of the slow trickle of grant money awarded in the 2007 session. Of the total $10.1 million allotted, leaders charged, only $2.6 million had been released by early May.

Any funds not issued by the end of the fiscal year on June 30 will evaporate.

In the last month, the flow has quickened: By last week, just over $6 million had cleared the governor's desk.

Still, that leaves too many down-to-the-wire decisions being made.

The nonprofits that are still waiting for word range from a few health organizations to charities that provide housing, youth services, education, and economic and community development support.

The governor's staff underscores that there's no hidden agenda here: The projects are deserving of aid.

The question is: How much can the state afford?

Grants-in-aid are what are given out when there's discretionary money left after the principal government services are budgeted. In the 2007 fiscal year, there was a surplus.

However, the administration asserts that it has the duty of balancing the budget. When projected revenues didn't materialize as expected, the executive branch had to exercise some of the discretion it has with the purse strings.

This year, the governor's staff circled back a second time to ask more questions about the funds each group needs and whether each can tap additional resources. In certain cases, officials said, the money request was still sitting on a desk at a state agency, waiting for blanks to be filled in; in others, eligibility of certain groups had to be checked.

Due diligence is fine, but when it takes this long, the system is broken. The administration needs to boost efficiency, making sure it's not duplicating work lawmakers have already done.

And it needs to get the money in the hands of the charities that need it.