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Committee backs bill asking DHS to raise nonprofit contract rates to match providers' 'true cost'
Summary
The House Committee on Human Services and Homelessness advanced HB244 on Feb. 6, a bill that would authorize the Department of Human Services to appropriate funds intended to bring nonprofit contract rates closer to the actual cost of providing services, following extensive testimony from providers and a request from the department for clearer allocation language.
Chair Lisa Martin said the committee took up HB244 on Feb. 6, a bill that would appropriate funds for the Department of Human Services to collaborate with community-based organizations to address social-service costs, a campaign known in testimony as the True Cost Coalition.
The measure drew broad support from nonprofit providers, who said contract rates have not kept pace with rising costs. Joseph Campos, deputy director at the Department of Human Services, told the committee the department supports the bill’s intent but asked for clearer language on how funds would be allocated across specific community-based organizations and contracts.
Representatives of the True Cost Coalition and multiple service providers described recruitment and retention problems tied to low wages and flat contract rates. Kat Brady of the Community Alliance on Prisons said providers “haven't gotten a raise for a long time” and that billing and reimbursement processes make lending or bridging finance difficult for small nonprofits. Tricia Kajimura of Parents and Children Together called the situation a crisis and said providers “can't wait another year.”
Hawaii State Coalition Against Domestic Violence executive director Angie Mercado said about $3,000,000 in DHS funding supports domestic-violence services, of which $1,000,000 is from the Family Violence Prevention Services Act and the remainder comes from a mix of special funds and federal sources; she urged dedicating general funds to ensure program stability. Judith Clark of the Hawaii Youth Services Network and others described staff who qualify for public benefits because wages and reimbursements are so low.
Chair Martin pressed the True Cost Coalition and DHS for concrete figures and implementation language. Hannah Lisiak of the coalition said the group is seeking a 30% raise “for any contract to a nonprofit organization by DHS,” but she did not provide a statewide dollar total. Campos said DHS would need to study allocation methods to ensure equity and suggested language that would permit DHS to adjust percentages where contracts have been updated recently.
Martin directed both DHS and the True Cost Coalition to provide draft bill language and funding numbers within 24 hours to assist in drafting committee amendments. The committee voted to pass HB244 with amendments to defect the effective date and to instruct DHS to distribute funds among contracts; the committee agreed to include a recommended dollar amount in the committee report once DHS and the coalition submit numbers.
The committee added the 30% benchmark in discussion but said the final dollar amounts and allocation mechanics would be captured in the committee report and bill amendments.
Ending: The committee’s action advances HB244 with instructions for DHS and the True Cost Coalition to supply specific allocation language and numeric estimates for the committee report. Further statutory changes or funding would be reflected in later drafts and the committee report.
