HomeMy WebLinkAboutCOM 0149.010 2022-2024 AC,
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Hawaii County Council Government Operations & External errs!_& "r nitfeRe Hr§awafii County
Building 25 Aupuni Street, Hilo, HI 96720
RE: Testimony Opposing Bill 32
Aloha Council Members:
I am writing on behalf of The Men of PA'A, a nonprofit organization dedicated to preserving and
promoting the cultural heritage, values, and practices of native Hawaiians. We provide
educational programs, cultural events, and support services that empower our community
members and help them thrive. Our organization strongly opposes Bill 32, as it will have
detrimental effects on nonprofit organizations, like ours, that are already struggling to fulfill
their Missions.
Bill 32 seeks to amend Chapter 2, Article 25, Section 2-138 of the Hawaii County Code by
restricting the use of public funds to only cover the actual costs of expenditures directly related
to the service or activity covered by the grant award agreement. The proposed language
effectively eliminates the 10%administrative allowance, which is currently permitted for
nonprofits to cover indirect costs essential to our operations.
Indirect costs, such as insurance, accounting, facility expenses, professional services, and office
equipment, are crucial for maintaining a nonprofit's infrastructure and enabling it to cavy out its
programs effectively. By removing the administrative allowance, Bill 32 would force nonprofit
organizations to divert funds from direct program services to cover these costs. This would
result in reduced program offerings, diminished capacity, and potentially the closure of some
organizations that are unable to make ends meet. By eliminating this allowance, Bill 32 places an
additional burden on Hawaii's nonprofit organizations, making it even more difficult for us to
compete for grant funding and deliver vital services to our communities.
The bill's language fails to provide a clear definition of "administrative allowance," leading to
confusion and potential misinterpretation.
The Men of PA'A strongly opposes Bill 32 and urges the Hawaii County Council to reconsider its
stance on this issue. We ask that you table the bill until appropriate language and provisions can
be established to maintain a minimum 10% administrative allowance for all County grants,
allowing nonprofits to continue providing essential services and support to our communities.
Mahalo for your attention to this critical matter.
Sincerely,
lopa Maunakea, Executive Director
The Men of PA'A (Positive Action Alliance)
Comm. o '
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Ref. Date APR 1 8 2023