HomeMy WebLinkAboutCOM 0487.003 2008-2010William P. Kenoi
Mayor
County of Hawaii
Finance Department
25 Aupuni Stree[, Room 118 • Hilo, Hawaii 96720
(808) 961-8234 Fax (808) 967-8248
August 31, 2009
J Yoshimoto, Council Chair and
Members of the Hawaii County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Nancy E. Crawford
Director
Deanna S.Sako
Deputy Director
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Re: Finance Committee Communication 487 (Bill 131) -Charter Amendment
Budgetary Independence for the Office of the Legislative Auditor
The referenced bill for an ordinance to initiate a Charter amendment would set aside
two-tenths of a percent of the combined operating and capital budgets each year to be
appropriated to the Legislative Auditor (LA) for annual expenses.
I am testifying in opposition to this bill for several reasons, the first of which is that I am
philosophically opposed to the general concept of earmarking revenue funds for special
purposes. Setting aside percentages of revenue gives them the highest priority,
meaning they take precedence over all other areas of County operations, including
public safety.
Additionally, removing the Office of Legislative Auditor from the budgetary process
would seem to eliminate any requirement for justifying their budget. The budget process
is followed by all County branches, departments and agencies, including the County
Council and the Mayor. Ironically, there would be no fiscal oversight or accountability
for the office charged with monitoring the accountability of others. While the current LA
may be committed and diligent in her efforts, a future Auditor may not be as responsible
with the automatic budget they would receive.
Setting a formulaic budget for the LA is not consistent with other such positions within
the State. Legislative Auditors in the other three Hawaii counties are all subject to
following the budget process and receive no pre-determined formulaic amount for
operations. It is my understanding that the State Auditor is also subject to budgetary
oversight.
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Hawai'i Counfy is an Equal Opportunity Provider and Employer
County Council Bill 131
August 31, 2009
Page 2 of 2
The bill under consideration would provide the Office of Legislative Auditor with a
significant budget increase at a time when the County is fiscally challenged and all other
departments and branches are making large cuts. Using the .002 formula applied to
this year's budget would expand their budget from $776,880 to $1,193,964 - a 54%
increase. Including the capital budget in the calculation does not make any sense in the
case of Hawaii County. Our capital budget is not a funded budget. It is an
appropriation of approved projects, and is not representative of the amount of work
done or funds spent.
Thank you for the opportunity to provide input on this very important matter.
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Nanc Crawford
Director of Finance