HANO: November 2010 Newsletter

President's message:

Governments must make good
on contracts with nonprofits

Last week, the Abercrombie and Aiona campaigns exchanged words over what to do with rainy day funds the Legislature appropriated to be released to health and human service providers at the beginning of the fiscal year. Ultimately, human lives hang in the balance when government chooses not to keep its promise to pay on nonprofit contracts. We can't emphasize it enough: Real people are affected by these delays.

The rainy day fund issue is an apt backdrop to the Urban Institute’s October study on government contracts with nonprofits – it’s a nationwide problem. Hawaii ranked 8th nationally in mid-stream contract changes by governments and 15th in late payments to nonprofits – not something to be proud of. Meanwhile, Hawaii was ahead of the national average in layoffs and salary cuts. For more Hawaii statistics, see this article.

This issue should concern us all. Most government contracting is for health and human services. When providers don't get paid, they seek alternative funding, competing against other nonprofits, such as those working in the arts, education and the environment. We must impress on the new Governor, whoever he may be, and his new administration, that this issue merits attention.

For more about these and other important issues, please read this month’s newsletter. We hope to see you at our upcoming nonprofit conference on Nov. 9 and 10 where these issues will be addressed at HANO’s annual meeting and the Town Hall discussion that will follow.

Aloha,

Lisa Maruyama
HANO president & CEO