The Department of Budget and Finance stated Monday morning that it has no intention of releasing $24 million in emergency funds that the Legislature appropriated last session for education, human services and health.

“What I have to say is in no way judging your programs, and recognizing that you all do good work, but the state is in a financial condition and is unable to continue funds for ongoing programs,” said Budget and Finance Director Georgina Kawamura Monday morning during an informational briefing with the Senate Committee on Human Services. “For all those in the room, I appreciate your understanding of these fiscal challenges. We are maintaining careful stewardship of our resources in this economic uncertainty.”

Her comment was directed at the more than half-dozen organizations there pleading for the release of the rainy day funds. She cited the state’s fragile economy as cause for her reluctance to allot the money. Many of the programs seeking the emergency funds are ongoing, Kawamura explained, and the state would not be able to maintain them long-term through the Emergency and Budget Reserve Fund.

“None of the appropriations have been allotted as of yet, because we feel it’s not prudent to release funds from the emergency relief fund as of yet,” she said. “For the second quarter (Oct. 1 – Dec. 31) there will not be consideration of releasing the appropriated funds. Our administration will not consider it. The next administration may.”

“Are there any ongoing services and programs important enough that, during a period when we don’t have enough revenue, the administration would be justified in tapping the rainy day fund to pay for those services?” asked Committee Vice-Chair Les Ihara.

Kawamura revised her statement to say that the Department of Budget and Finance might consider releasing funds if “a very strong case” were made.

Several agency representatives said there has never been a greater emergency for sustaining prevention programs that could save the state money long-term.

Agencies present included:

• The Hawaii Department of Education
• The Hawaii Department of Health
• City & County of Honolulu Elderly Care Division
• Child & Family Service, Hawaii’s self-proclaimed oldest and largest nonprofit.
• Hawaii Primary Care Association
• YWCA Kauai
• Lanakila Senior Center
• The Windward Spouse Abuse Shelter
• PHOCUSED, a nonprofit organization dedicated to serving and advocating on behalf of underserved and marginalized populations in Hawaii
• AARP Hawaii

Some of these organizations’ budgets have been cut up to 56 percent in the last two years, their representatives said.

“How much more of a rainy day are we going to expect to occur before this administration understands that these funds are needed now; they were needed yesterday?” asked Alex Santiago, executive director of PHOCUSED. “These funds are needed now and it can’t wait for the next administration to clean up the potential mess that will be left as a result of not releasing the funds.”

The administration is charged with carrying out policy determined by the Hawaii Legislature, he pointed out.

Santiago is concerned with “the level of power that this administration seems to want to to wield during its final days,” he said. “Not only do they want to administer it, but they want to set the policy. The policy has already been set.”

The governor has the authority to withhold funds, Kawamura replied. She said that dipping into Hawaii’s emergency reserve fund to finance ongoing operations would only “diminish the integrity” of that fund.

“My responsibility is to look at the state’s financial condition as a whole,” she said. “And our ongoing revenues do not cover ongoing operations, which is why the Legislature decided to include these appropriations in the rainy day fund.”

She then reprimanded the Legislature for tapping the emergency fund “year after year” and said it’s the Legislature’s responsibility to match operating expenses with the state’s revenues.

Committee Chair Suzanne Chun Oakland said the Legislature has not tapped the emergency fund every year and asked Kawamura to provide substantiation for her claim. Kawamura said she would write up an outline of the bills and emergency appropriations when she returned to her office.

Neil Abercrombie, the Democratic nominee for governor, said the refusal by Gov. Linda Lingle and his Republican opponent, Lt. Gov. James “Duke” Aiona, to release the funds is “the latest example of the conflict and lack of vision that is fracturing our community and hampering our economic recovery.”

““Private nonprofit organizations are employers,” he stated in a press release issued Monday afternoon. “Like all businesses, they are relying on government to follow through as planned. In this case, the failure to release these funds will cause job losses and cutbacks at a time when these organizations need capacity to serve growing community needs. More disturbing is the Lingle/Aiona administration’s disordered priorities where the most needy in Hawaii have to continue suffering, while groups that want to and can help have to beg government for a response.”