STAND. COM. REP. NO. 3871

Honolulu, Hawaii

RE: H.C.R. No. 143

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred H.C.R. No. 143 entitled:

"HOUSE CONCURRENT RESOLUTION URGING THE DEPARTMENT OF HUMAN SERVICES, DEPARTMENT OF HEALTH, AND JUDICIARY TO PRIORITIZE ENSURING THAT CONTRACTS FOR GOVERNMENT SERVICES ARE ADEQUATELY RESOURCED TO COVER THE COSTS OF PROVIDING THOSE SERVICES,"

begs leave to report as follows:

The purpose and intent of this measure is to urge the Department of Human Services, Department of Health, and Judiciary to prioritize ensuring that contracts for government services are adequately resourced to cover the costs of providing those services.

Your Committee received testimony in support of this measure from the Department of Health; Catholic Charities Hawaiʻi; Hawaiʻi True Cost Coalition; Hawaiʻi Health & Harm Reduction Center; Parents And Children Together; Partners in Care – Oahu's Continuum of Care; EPIC ʻOhana; Hawaiʻi State Coalition Against Domestic Violence; The Institute for Human Services, Inc.; Hawaiʻi Children's Action Network Speaks!; Hawaiʻi Foodbank, Inc.; Mediation Center of the Pacific, Inc.; YMCA of Honolulu; Aloha United Way; Hale Kipa, Inc.; AlohaCare; Lanakila Pacific; Easterseals Hawaii; The Spirit Horse Ranch Inc.; Adult Friends for Youth; and two individuals.

Your Committee received comments on this measure from the Department of Human Services.

Your Committee finds that community-based organizations provide services to vulnerable populations in the State through government contracts at reduced rates. However, a recent survey found that ninety-one percent of these organizations were resourced below the full operating costs required to provide the contracted services. According to testimony received by your Committee, government contract rates have not increased in the past decade, while program expenses, including wages, utilities, and administrative costs have all increased. This measure urges certain state departments and the Judiciary that contract with community-based organizations for critical public services to the State's vulnerable communities, such as support for victims of domestic violence, foster care and at-risk youth, low-income households and the elderly, and homeless families and individuals to ensure that the contracts are adequately resourced to cover the operating costs of these community-based organizations to assure the continuation of these essential services.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 143, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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ANGUS L.K. MCKELVEY, Chair