OHA leaders present biennium budget showing operating surplus; CEO seeks $2.28 million for office and $500,000-per-year set‑aside for land inventory

Office of Hawaiian Affairs CEO Stacy Ferra told the board of trustees during a May budget briefing that OHA is preparing a biennium budget built from a $49,000,436 spending limit for one funding column and a $68,144,328 spending limit in another, with current budget requests running below those limits.

Ferra said the administration’s FY26 request in one view totals $46,850,825, producing a current surplus of $2,585,827 for that column; in a broader column the spending limit is $68,144,328 and the request is $61,703,252, a surplus of $6,441,076. “This budget that you have before you really is an articulation of how that gets done,” Ferra said as she opened the multi‑day briefing series.

Why it matters: Ferra framed the briefing as an opportunity for trustees to see detailed program asks so the board can align priorities to the agency’s statutory mandate and strategic plan. She emphasized a “bare‑minimum” approach to requests and said the surplus gives trustees room to add priorities before the biennium is finalized.

What Ferra proposed: Ferra presented a two‑year CEO office request of $2,275,516 ($1,146,262 for FY26 and $1,129,254 for FY27). The largest CEO office line is personnel; other prominent categories are travel, contracts and a proposed carve‑out for a land‑inventory/audit. Ferra said she has budgeted funds for an independent audit of “Hawaiian kingdom crown/government lands” and for international travel that would be vetted through new travel protocols. She told trustees the inventory/audit line was included to avoid having to carve funding retroactively from other accounts if the board decides to pursue the work.

Trustee questions and clarifications: Trustee Galutario asked about the inventory line. Trustees and staff clarified the proposal is $500,000 per fiscal year ($500,000 in FY26 and $500,000 in FY27) and that, if the board delays action, the FY26 allocation could be carried forward into FY27. Ferra said the board had earlier sought a legislative match for the inventory but the bill did not clear conference; she described the $500,000 annual amounts in her office budget as a placeholder so funds are available should trustees direct the work. The timeline for the inventory was described as a two‑year effort.

AI, travel and contracting: Ferra confirmed staff had been evaluating AI tools and that the agency is coordinating with the state CIO and corporate counsel on legal and policy guardrails. Everett Ota, corporate counsel, was referenced as leading legal assessment of AI use. Ferra said ChatGPT–style tools are being used by staff and the administration is proposing modest subscriptions for writing and graphic tools; she said those subscriptions are meant to supplement—not replace—state systems such as Microsoft Copilot while legal reviews continue. On international travel, Ferra said she intentionally placed large international travel requests in her office budget so the board and chair would have “extra eyes” on who would travel and why.

Cultural items and ceremonial spending: Ferra told trustees she has requested modest funding for an official OHA seal, pins and flags for dignitary presentations and to reflect the agency’s government status. She described one small line—$2,500 per fiscal year—for ceremonial items and said the item is a placeholder that could be reduced or reallocated pending an ELT office relocation.

What’s next: Ferra and staff asked trustees to use the next briefing days to review department‑level asks. Staff committed to responding to unanswered questions by email or at the next available meeting.

Ending: Trustees did not decide policy on the inventory or major international trips at the session; Ferra said detailed scopes and MOAs would be prepared if the board asks staff to proceed.