One danger of managing a budget crisis is the inclination to make decisions that are penny-wise and pound-foolish.

Such is the case of House Bill 1741, now before the Senate Ways and Means Committee, which proposes a change in how certain special funds are managed. The funds at issue include the Land Conservation Fund, the Natural Area Reserve Fund and the Rental Housing Trust Fund, all of which receive allotments from the state conveyance tax. Even without legislative action, all the funds will show a natural decline, given the dropoff in land transactions that generate the tax.

Under HB 1741, however, the latter two funds would get their share of the tax revenue reduced by half or more. But it's the conservation fund, used for acquisition of lands that deserve preservation, that would bear the deepest cut, dropping from a 10-percent share to no funds at all for the next six years.

First of all: Six years? Even the gloomiest prognosticator is expecting economic recovery well before then. At the very least, lawmakers should rethink the duration of such an austerity program.

Secondly, zeroing out the fund would mean the loss of matching federal funds supporting acquisitions, and of personnel who will be tough to replace should the program go entirely dark. Laura Thielen, director of the Department of Land and Natural Resources, echoed these concerns. She also suggested a reasoned guide for cuts that would do less damage, by preserving the function of the land fund while greatly reducing the allocation for land purchases, for the short term.

The Legislature faces fiscal shortfalls unprecedented in the state's history. But leaders need to think carefully before doing significant harm to these three funds.

Rental-housing development is in high demand for Hawai'i residents seeking an affordable place to live. Additionally, eliminating barriers against invasive species, and suspending land banking, will only erect hurdles that will be more difficult to clear in the future. Even in lean times, stewardship over Hawai'i's precious resources is a critical obligation.