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OER warns cuts to 20 positions would undercut Honolulu’s grant capacity
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Summary
The Office of Economic Revitalization told the Budget Committee that proposed elimination of 20 positions would harm the office’s ability to secure federal and private grants and slow post‑storm economic recovery; committee accepted three community equity liaison positions but continued debate over larger reductions.
A budget hearing on March 30 at the Honolulu City Council Budget Committee turned into a tense exchange over proposed reductions to the Office of Economic Revitalization (OER), with OER Director Amy Ossalbeye saying cuts would reduce the city’s capacity to win competitive grants.
"My name is Amy Ossalbeye. I'm the director of the Office of Economic Revitalization," Ossalbeye told the committee, noting most of OER’s current program work is grant‑funded. She said the office now manages roughly $3,100,000 in programmatic activity and that staff reductions would weaken the city’s ability to pursue federal and private funding during an economically fragile recovery.
The proposed amendments in the CD1 worksheet would eliminate 20 positions and reduce $1,620,584 in salary funding but would add three community equity liaison positions funded at $224,304. Council members pressed the administration on whether cuts would leave leased office space unused and whether fewer staff would jeopardize future grant awards.
Managing Director Mike Formby told the committee that the work OER performs is often intangible and difficult to measure on paper but said the administration views OER as necessary for long‑term economic programs such as workforce development and attracting federal grants.
Committee members split on the deep cut to 20 positions; several acknowledged the need to tighten budgets but warned that reduced staffing could make it harder to recover from recent storms and to coordinate economic support for businesses and farms.
The committee ultimately recommended accepting the three community equity liaison positions while continuing to discuss larger structural changes to OER and potential consolidation of duties with other departments in future hearings.
Next steps: Bill 22‑20‑26 was amended to a CD1 incorporating the day’s changes and was reported out for second reading and a public hearing.
