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Trustees defer decision on $140,000 Mahiʻai Micro Fund rollover
Summary
Trustees deferred a vote on reauthorizing and reallocating $140,000 in FY2024 grant carryover for the Mahiʻai Micro Fund after debate over whether Grants or Strategy & Implementation should administer the work and whether a native CDFI should be contracted to distribute awards.
The Office of Hawaiian Affairs Budget and Finance Committee on April 23 deferred action on an item to carry over $140,000 in fiscal year 2024 grant carryover funds and reallocate them from the grants program budget to the Strategy and Implementation (SNI) budget for execution of the Mahiʻai Micro Fund.
The request was presented by a staff member identified as Poni, who said the project had been approved by the board in May 2024 but that a project request (PR) was not properly executed and the funds were never attached. Poni told trustees she sought the roll-over and reallocation so SNI could run an RFP and execute the micro‑grant program more quickly than Grants could, given Grants’ staffing shortages. "I really just feel like we have the kuleana to the commitment that was made to those funds and program to execute this as swiftly as possible," Poni said.
Trustees debated two questions: whether to reauthorize the funds before fiscal year end and whether execution should remain in the Grants division or move to SNI. Trustee Kahele said he agreed the funds should be reauthorized but raised concern about removing the program from Grants, noting OHA’s long‑standing role in grantmaking and current vacancies the board intends to fill. "By pulling this out of Grants...we limit the ability for Grants to do programs like this in the future," Kahele said, urging staff collaboration if the funds remain in Grants.
Vice Chair Wahe'e (transcript spelling varies) said the original intent was to identify and engage a 501(c)(3) to administer the micro fund and that contracting with a community organization had been contemplated earlier. Poni said OHA staff had estimated a native CDFI's administrative fee could be about 10 percent on average, potentially as high as 20 percent, which would reduce the portion of the $140,000 that reaches beneficiaries.
After discussion, Trustee Lindsay moved to defer the item to the next Budget & Finance meeting scheduled for April 30 so absent trustees could participate and staff could refine the action language; the motion was seconded and passed by roll call. The committee instructed staff to update the action item for re‑agendizing, and trustees said reauthorization before fiscal year end remained the preference if timing allowed.
Clarifying details noted in the meeting: the $140,000 was originally appropriated in May 2024; the PR for attaching funds was created later but not executed; administration estimated contracting with a native CDFI could shave about 10 percent (rough estimate) for administration and that, if moved to SNI, staff aimed to complete contracting and start awards by August–September 2025. Trustees asked staff to explore alternatives including moving the funds to a contracts line to permit an RFP while keeping Grants involved in monitoring.
The item was deferred for additional drafting and vetting and will be re‑listed for the committee's April 30 meeting.
