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Updated: 2 hours 41 min ago

Feds criticize isle unit fighting Medicaid fraud

Wed, 09/30/2015 - 15:36
A unit set up in the state Attorney General’s Office to combat Medicaid fraud has failed to communicate with federal authorities about its investigations and worked on cases that were not allowed under a federal grant, according to the Inspector General for the U.S. Department of Health and Human Services.
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KPMG gets new $26M sole-source Obamacare contract

Sun, 09/20/2015 - 16:30
The accounting and consulting firm KPMG LLP has landed a $26 million nonbid contract to add new functions to the state Department of Human Services’ KOLEA computer system to meet federal demands that the state quickly comply with the national Affordable Care Act, or Obamacare.
Categories: In the News

Timing is crucial for clearing camps, sheltering homeless

Sat, 08/29/2015 - 16:37
Mayor Kirk Caldwell estimates it will take months to find enough shelter beds and housing to clear out the estimated 293 people living in the Kakaako homeless encampment, even as the Institute for Human Services quietly moved 21 adults and family members off the sidewalks over the last three weeks.
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IHS to open homeless site by fall

Thu, 07/02/2015 - 16:36
The Institute for Human Services is expected to open the city’s transitional homeless housing center on Sand Island by the fall, Honolulu Mayor Kirk Caldwell and service providers said Thursday.
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IHS helped Jonathan Keli‘ikoa get off the streets before his life ended

Sat, 05/30/2015 - 15:38
After living 40 of his 56 years on the street, Jonathan Keli‘ikoa finally got a one-bedroom apartment on April 2 through the Institute for Human Services.
Categories: In the News

Tuition increase seen as solution

Fri, 05/08/2015 - 15:38
A scheduled tuition hike that University of Hawaii officials had hoped to forgo in the fall is back in play as the university looks to make up $28 million that lawmakers left out of the state budget for university operations in the upcoming fiscal year.
Categories: In the News

Legislators agree on 'skinny' budget

Tue, 04/28/2015 - 16:31
House and Senate lawmakers announced they have reached agreement on a new, "very skinny" state budget that would limit general fund spending to about $6.6 billion in the year ahead, or roughly the same total as Gov. David Ige proposed in the draft budget he submitted to lawmakers earlier this year.
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Head Start receives 'critical' federal aid

Sat, 04/11/2015 - 15:37
The U.S. Department of Health and Human Services has awarded more than $12.5 million to help fund the Honolulu Community Action Program's Head Start initiative, which is Hawaii's largest early childhood program. The program serves more than 1,600 children each year.
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Pick to head up Human Services gets green light

Fri, 03/20/2015 - 15:35
Rachael Wong was confirmed Friday by the state Senate as director of the Department of Human Services.
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Draft of state budget due for full House vote

Sun, 03/15/2015 - 17:33
The Hawaii House of Representatives is poised to pass a state budget that includes slightly less spending than what was requested by the governor, who had warned that there was no extra money for increases to programs in the upcoming two years.
Categories: In the News

Draft of state budget due for full House vote

Sun, 03/15/2015 - 15:32
The Hawaii House of Representatives is poised to pass a state budget that includes slightly less spending than what was requested by the governor, who had warned that there was no extra money for increases to programs in the upcoming two years.
Categories: In the News

Panel trims $72M from UH budget

Thu, 03/12/2015 - 15:32
The House Finance Committee cut about $72 million this week from the University of Hawaii's budget request for the upcoming fiscal year. The House draft of the state budget includes a little more than $369 million in general funds for the 10-campus system, a 16 percent decrease from the approximately $441 million the university had wanted.
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Outreach plan offers shuttles to Iwilei shelter

Sun, 03/08/2015 - 16:31
The Institute for Human Services, with support from the state’s visitor industry, has started running a shuttle between Waikiki and its Iwilei shelter to help the tourist district’s unsheltered homeless residents get on the fast track to housing.
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Federal grant to give $1.4 million to Kapi'olani Medical Center

Thu, 03/05/2015 - 14:41
The Hawaii Congressional Delegation announced Thursday that Kapi'olani Medical Center for Women and Children will receive $1.4 million from the U.S. Department of Health and Human Services' Health Resources and Services Administration.
Categories: In the News

Waikiki Homeless: 63 exit street to live inside

Tue, 01/13/2015 - 14:34
A few weeks ago the 48-year-old formerly homeless woman would have scoffed at such optimism. However, her life has changed radically since she became one of the first five Wai­kiki homeless people placed into permanent housing as a result of the Institute for Human Services' $2 million city Housing First contract.
Categories: In the News

Carroll cites poor health for resigning House post

Sat, 01/10/2015 - 17:28
Health issues have prompted Rep. Mele Carroll to step down as chairwoman of the House Human Services Committee, the neighbor island representative said last week in a news release.
Categories: In the News

State to pay $134,000 in death of child

Tue, 01/06/2015 - 14:30
The state has lost its appeal of a judge's ruling in which the state Department of Human Services was found negligent, along with a Navy diver based at Pearl Harbor, in the 2009 death of the sailor's 14-month-old boy.
Categories: In the News

Men molested as teens sue state foster care system

Wed, 12/24/2014 - 15:41
A lawsuit was filed against the state Department of Human Services on behalf of two boys the suit says were sexually assaulted while in foster care.
Categories: In the News

DHS sued on behalf of boys abused in foster care

Tue, 12/23/2014 - 14:39
Hawaii attorneys are suing the state Department of Human Services on behalf of two boys who were sexually assaulted in a foster home.
Categories: In the News

Hawaii’s billions in unfunded retirement liabilities part of national trend

Thu, 11/20/2014 - 10:17

Photo: Emily Metcalf

BY MALIA ZIMMERMAN - HONOLULU — A new report from State Budget Solutions, a national nonprofit organization focusing on states’ fiscal responsibility, warns it’s time for newly elected state officials in Hawaii and throughout the country to address unfunded liabilities in the retirement system.

The share of Hawaii’s $30-billion unfunded liability per resident is $21,852, the seventh highest in the nation, said Joe Luppino-Esposito, the study’s author.

He said Hawaii’s Employees’ Retirement System is only 29 percent funded because the state isn’t putting enough money into the system to pay future promised benefits. The unfunded liability amounts to 41 percent of the state’s gross domestic product.

State officials paint a different — if still grim — picture, showing the pension system as 60 percent funded.

The translation in real dollars is $8.5 billion. That’s a major discrepancy from the SBS $30 billion estimate.

The main difference, Luppino-Esposito said, is the discount rate used. That’s the rate that determines how much money is needed today to have enough revenues in the future to meet obligations to retirees.

Hawaii uses a 7.75 percent discount rate, assuming the plan will average 7.75 percent investment growth over time, a number Luppino-Esposito said “is far too high.”

“Hawaii should use a risk-free rate instead, ensuring that state employees will actually get the pension they were promised,” Luppino-Esposito said.

Hawaii is far from alone. The SBS report, which reviewed 250 plans, documents state governments are in a $4.7 trillion hole. Liabilities have increased roughly $600 billion since last year. The average state public pension plan is only 36 percent funded, the report said.

Wes Machida, executive director of Hawaii’s Employees’ Retirement System, acknowledged there are some elements in the study to which the state should pay attention.

“There are concerns about employers being able to make those kinds of contributions,” Machida said. The “employers” he is referring to are state and local governments.

“At some point down the road, this will likely be an issue for Hawaii. The requirements will be so high as to outgrow what is available in the general fund. That is a possibility if we don’t do something to help with the situation,” Machida said.

Pension reforms implemented by the Legislature in the past four years should help, he said.

Machida and the Employees’ Retirement System Board of Trustees hope Hawaii’s newly elected governor, David Ige, will push additional reforms to further reduce benefits for new hires. The next legislative session begins in January.

Lawmakers in 2011 and 2012 approved legislation that reduced retirement benefits for new state employees who entered the system as of June 30, 2012. Another change in 2012 prevents workers from accruing benefits from overtime, bonuses, lump sum salary and allowances.

In 2011, legislation increased the employer and employee contribution rates. Employees pay between 6 to 14.2 percent of their pay into the fund. Employer contributions are steadily increasing until 2016, when the contribution rate will stabilize at 17 percent of pay for all employees except police officers and firefighters. Those agencies will contribute 25 percent of their employees’ pay.

Other changes include doubling from five to 10 the number of years it takes to become vested in the system.

Machida said the Board of Trustees lowered the anticipated rate of return for next year on investments. The rate will be reduced gradually over the next three years to 7.5 percent, and will be reviewed annually by the board, Machida said.

According to state figures, the retirement fund is at $13.9 billion as of Sept. 30, but because markets have grown, Machida said the fund is probably around $14 billion now.

Another $8.5 billion is needed to cover unfunded liabilities or future payments owed to the more than 115,000 people in the system, including all retirement income, death and termination benefits, but the state won’t be able to cover that amount for decades.

To put it in perspective, the state’s biennium operating and capital budgets are $24 billion during the next two fiscal years.

The state’s financial plan will pay off the retirement system’s unfunded liabilities within 26 years.

“The most important thing is we need to monitor what is going on with the fund and how the investment markets are impacting us. That also includes how the membership has changed and what their retirement needs are,” Machida said.

“If more people start to retire earlier, we will need more payouts, and that will require us to liquidate more funds. If members start living longer, we will need more benefit payouts. There are many different areas to monitor to make sure the fund is properly funded,” Machida added.

Between 2,000 to 2,500 state and county employees retire each year in Hawaii, adding to the $1.1 billion annual payout already made to 67,000 retirees in the plan, which has additional challenges not necessarily encountered in the rest of the country. The average life expectancy for members in Hawaii is 82 to 83 years of age, much greater than the national average, Machida said.

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Categories: In the News