Comm No 0021.060 - Testimony - CA-7 - PONC fund and Maintenance fund

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County of Hawaii Charter Commission West Hawaii Civic Center January 25, 2019 Re: Communication 21.55: transmitting CA -7 Draft 2 for First Reading Aloha Charter Commissioners, I am writing to express my strong opposition to Communication 21 which would reduce the amount deposited into the County's PONC Fund, insert a provision by which the PONC Fund may be suspended if deemed "necessary to prevent a reduction in the level of public services," and remove the restrictive covenant that ensures that the PONC Fund remains under the ownership of the County of Hawaii. The people of Hawaii have voted repeatedly to support the PONC Fund and its current structure by a clear majority, and this voting record demonstrates the strong conservation and environmental ethics of Hawaii's residents and voters. Unfortunately, CA -7 Draft 2 undermines the intent of the PONC Fund in three key ways. First, CA -7 Draft 2 proposes to reduce the funding mechanism from 2.25% (including the much- needed maintenance fund) to 1%, thus significantly reducing the power of the fund to preserve and protect open space and natural resources that benefit all who live and visit the Big Island. The fact that the fund has not utilized all of its funds should encourage the Commission to support the administration of the fund rather than cutting the overall amount. To that end, CA -9 Draft 2 would provide the dedicated staff person to ensure that the fund is used as voters intended. Next, CA -7 Draft 2 seeks to insert a provision that would allow the Commission by a 2/3 vote and/or the director of finance to suspend the fund should either entity determine that the suspension of the Fund is "necessary to prevent a reduction in the level of public services." This provision gives the Charter Commission with a 2/3 majority and/or the director of finance essentially carte blanche to suspend the program with no regulatory oversight or recourse from the general public. Although all would acknowledge that balancing a budget requires making tough choices, this provision would allow the suspension of the PONC Fund based upon an individual's interpretation of what a "reduction in the level of public services" actually means. In addition, this provision appears to assume that the preservation and protection of our natural resources for generations to come is, in itself, not one aspect of the many public services that that county provides for the public. Finally, CA -7 Draft 2 would eliminate the restrictive covenant that ensures that the lands acquired stay preserved and protected in perpetuity by the county. This provision stands to further weaken the PONC Fund by discouraging individuals and organizations from providing matching funds and by reducing the overall confidence in the fund's ability to fully carry out its mission to protect and preserve lands in perpetuity. Other mechanisms could be put in place that would give the county more flexibility while still ensuring that the lands will remain protected. Comm. No. 21.60