Ka Wai Ola - Office of Hawaiian Affairs, Volume 34, Number 2, 1 February 2017 — Aloha mai kākou, [ARTICLE+ILLUSTRATION]

Aloha mai kākou,

f you've seen OHA in the news lately, you might be surprised by all the good work eontinuing behind the seenes. I wouldn't hlame you for missing eoverage about the reeent agreement that officially elevated OHA to co-trustee status at Papahānaumokuākea Marine National Monument. Hawaiians finally have a say in high-level decision making about management of our kūpuna islands, on par with the state and federal agencies. It's a significant achievement, but TV news coverage on OHA that evening instead chose to focus on a board meeting that was adjourned after 10 minutes. The Papahānaumokuākea co-trusteeship was the result of a decade-long effort that remained consistent through several shifts in leadership at all levels of government. It serves as a good reminder to stay the course and not get distracted by politics. That's why we're moving forward with the fiscal sustainability plan we've spent the past four years working on. We need to support our beneficiaries while living within our means. OHA has a huge mandate. While many think we should be able to meet the expectations of every Hawaiian family, that's just not realistic. Like you and your 'ohana, OHA is on a budget. As niee as it would be to have prime rib every Friday and scallops every other weekend, sometimes you just have to settle for a humhle meal. So it goes at OHA, where we need to think strategically about how we ean use the resources we have to help 7th and 8th grade students improve their reading and math skills. To help Hawaiians better understand chronic health conditions

and reduce their risk for diabetes and heart disease . To help nonprofits \ with aleohol and substance abuse treatment programs provide services in our communities. To help organizations that offer hnaneial literacy and job skills training reach beneficiaries who want to get better jobs and move up the eeonomie ladder. Those are things we ean do without breaking the bank. Last year, we put more than $12 million back into our communities for programmatic funding, grants and sponsorships that address our state's most critieal issues, including housing and homelessness, education, health services and environmental stewardship. This also includes $3

million to the Department of Hawaiian Home Lands. The OHA Board of Trustees approves the agency's total operating budget, whieh includes our core operating budget. i Our core operating budget has remained in the $35 million l to $36 million range since I heeame Ka Pouhana in 2012. J Our total operating budget has fluctuated from $42 million I in 2012 to $50 million in 2016 and back down to $45 mil- ^ lion in the current fiscal year. Increases to our total operating ' budget are primarily related to OHA's added responsibilities as a landowner, particularly after our 2012 acquisitions of our commercial properties, including Kaka'ako Makai and Nā Lama Kukui. With that said, the commercial property budgets are based on their net assets and projected revenues, with no imnact on OHA's trust fund.

If we exercise fiscal constraint, we'U be able to grow our SEE KA POUHANA ON PAGE 5 i

MOVING FOR WAR D, WIĪHIN OUR MEANS

/ 'ŌLELO A KA LUNA HO'OKELE V ^ MESSAGE FR0M THE CE0 r ^ ^

KA POUHANA Continued from page 3 revenues further. We can't spend like we have $20 when we only have $10. But if we plan for the future, we ean find ways to eventually grow that $10 to $15, and at some point maybe we'll have $30 to $40 we ean use to help our people. OHA is an asset to the Hawaiian community and broader Hawai'i and we have data to back

that up. Don't take my word for it. Our annual reports from 2010 to 2016 are online at OHA.org. I encourage you to look at our budgets and see what measurable outcomes our grantees were able to accomplish as a result of our funding. Now we need to build on those achievements and make bold decisions that protect Hawaiian lands and build on our commercial properties. We need to be creative in our strategies and collaborative partnerships. We need to change the trajectory and aim for greatness.

'O au iho no me ke aloha a me ka 'oia'i'o, Kamana'opono M. Crabbe, Ph.D. Ka Pouhana/Chief Executive 0fficer