Council pauses proposed reduction to Grants‑in‑Aid ceiling after DCS and nonprofits raise operational and equity concerns

The Committee on Budget on July 21 postponed action on a resolution (Resolution 25‑186) that would set new city policy and lower the Grants‑in‑Aid (GIA) award ceiling from $150,000 to $100,000. The measure, introduced by Councilmember Kia Aina, is intended to extend city support to more, smaller nonprofits. Deputy Director Edward Los Banos of the Department of Community Services told the committee that lowering the ceiling to $100,000 would make roughly 40 additional organizations eligible for GIA funding and would increase the grants team’s workload by about 40 percent.

Why it matters: GIA funding supports many nonprofits that provide services to vulnerable populations across Oʻahu. Changing the grant ceiling affects both the number of organizations that can apply or receive city support and the city staff capacity required to administer additional awards within statutory procurement and encumbrance timelines.

Context and committee discussion: Los Banos said the ordinance requires the city to encumber funds within 45 days and to issue a notice to proceed within 30 days; he said the department typically carries over some grant funds from year to year. To manage the additional workload, DCS recommended hiring two new grants‑administration staff (SR‑22 Planner 4 positions), with a starting salary figure referenced during questioning of about $60,000. Los Banos characterized DCS as ambivalent on the policy choice and relayed mixed feedback from nonprofit service providers: larger nonprofits generally opposed the ceiling reduction, while smaller, community‑based groups supported it.

Nonprofit testimony: Several nonprofits urged maintaining the $150,000 cap. Maureen Purrington, executive director of HUGS, and Stephanie Hamano, chief impact officer for YWCA Oʻahu, told the committee GIA funds support crucial programs for families, women exiting incarceration, recovery services and other lifeline supports. They said reductions would force organizations to seek alternative funding sources, adding uncertainty. Angela Young, representing a grassroots group, spoke in favor of supporting city services to help houseless individuals and community outreach efforts.

Budget context: The DCS deputy director told the committee that FY26 funding available for GIA totaled $10,768,144, which he said reflects one‑half of one percent of real property tax collections plus carryover. He noted the one‑half‑percent dedication is set in city charter and that the Grants‑in‑Aid Commission was created by charter. Committee members discussed options including using vacancies or reallocating budgeted positions to meet DCS staffing needs during the budget process.

Decision: After discussion and public testimony, the chair recommended postponing action on the resolution to a later date to allow consideration of staffing and budget adjustments. The committee recorded the postponement and will revisit the matter during the budget cycle.