HILO — Hawaii County Council members often use their contingency funds as grants to nonprofits, which they say allows them to provide quick aid to their districts.
So, when use of the funds get delayed or denied, it doesn’t always sit well.
That was shown last week during a Finance Committee meeting when council members criticized Corporation Counsel Joe Kamelamela for what they saw as too much meddling in the process after the council authorizes the expenditures.
“What concerns me about this is the corporation counsel is the gatekeeper for use of council contingency funds,” said Hilo Councilman Aaron Chung.
Kamelamela said he’s trying to ensure the council complies with the county code and that the grants meet a public purpose.
“The threshold issue is that it has to relate to a service or activity,” he said during the Monday meeting in Hilo.
Puna Councilwoman Jen Ruggles, who was not in attendance because she was sick, requested the discussion.
She told the Tribune-Herald the issue came up when Kamelamela denied one of her contingency fund requests after the council approved it. Ruggles said the $2,500 was to go to a group called Orchidland Neighbors — not to be confused with the Orchidland Community Association — to design a community center.
Kamelamela said that’s a capital project, which doesn’t fit with the county code’s requirement that the money be used for services or activities. He said that was the only one he denied because it doesn’t comply with the law.
“There is a process that has been followed, from what I recall, since 2013,” he said. “Generally, most of these things go through.”
Ruggles said she saw the denial as circumventing the public process. She said the vetting process includes signatures from a department chief who handles the grant and mayor before it goes to the council.
“When I look at who determines what meets this public purpose nexus, the case law is it’s the legislative body that determines,” she said.
Mayor Harry Kim said review by corporation counsel is part of the checks and balances to ensure the funds are spent appropriately.
“The council knows their community better than us,” he said, echoing statements council members made during the meeting. “They are funding things that don’t need a lengthy process. … The balance is they cannot abuse those funds because corporation counsel has to review it.”
Each council member received $75,000 in contingency funds for this fiscal year. The funds can be transferred to a department for use or to a nonprofit through a department.
For nonprofits to receive the funds, their project has to meet one of the department’s goals and a contract has to be signed with the agency. Many go through the departments of Parks and Recreation and Research and Development.
Leaders of those departments say the groups have to report how the money is spent.
Ruggles said she plans on addressing the issue at the next Finance Committee meeting since she was too sick to attend the last one.
The county has a separate $1.5 million nonprofit grant program that also is reviewed by the council.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
