‘Dehumanizing Chaos’: OHA budget pits CEO against Chair of the Board

HNN Jun 30, 2025: … The agency’s chief executive officer, Stacy Ferreira, accused OHA Board Chair Kai Kahele of creating chaos and demoralizing staff by making several last-minute cuts and increases to the budget.

Kahele, who previously served in the state senate and the U.S. House, has only been a trustee since December, but his efforts to remake OHA through the budget have created a revolt from the staff.

Several OHA managers took the unusual step of testifying against the agency’s budget and the process that led to it….

Elena Farden, OHA Director of Strategy and Operations, said cuts would inhibit progress to restorative justice, reducing recidivism and human trafficking….

Kahele said open government laws delayed discussion, and he was open to suggested changes, which kicked off hours of votes on amendments under a midnight deadline before the end of the 2025 fiscal year….

CB: Some trustees at the start of Monday’s meeting called for a stop-gap budget for July, which could give the board the rest of the month to hash out the rest of the two-year budget. But trustee Luana Alapa, who leads the board’s budget committee, withdrew that request after seeing the line-item voting process play out throughout Monday afternoon.

Read … OHA budget pits CEO against Chair of the Board

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Kai Kahele’s OHA Spending Plan Filled With Bizarre Cuts, Changes  

CB Jun 30, 2025: … The proposed budget came from board chairman Kai Kahele, to the surprise of many of the staff and even some of the trustees. Kahele could not be reached for comment….

what came out of that process on June 18 baffled administrators and even some of the trustees who only learned about the new budget when it was posted publicly for the first time….

The new draft jettisoned many of the office’s original requests and made sweeping cuts to programs while allocating millions of dollars in grants to new projects and nonprofit organizations that appear to sidestep OHA’s competitive grants process….

The proposed changes include:

• Cuts in funding to certain Hawaiian charter schools
• The elimination of about $2 million in competitive grant funds
• More than $1 million in new allocations to marketing and media campaigns
• Huge pay raises for OHA staff
• The elimination of a Native Hawaiian specialty court
• The removal of new positions for which hiring was already underway

OHA’s CEO, Stacey Ferreira, said during a board meeting Wednesday that the administration wasn’t consulted on this most recent draft of the budget.

“The path that has been taking has significant implications, operationally and ethically,” Ferreira said.

OHA’s chief operating officer, Kēhaulani Puʻu, said that the line items for the new marketing campaigns are coming at the cost of workforce programs, wihch have been cut from the current budget.

Pay Raises: The new budget adds $1.6 million in personnel costs at OHA, which employs at least 116 people. While some positions would be moved to other departments and others could be eliminated, overall the office would have more employees earning higher wages.

Read … OHA Staff Baffled By Spending Plan Filled With Dramatic Cuts, Changes - Honolulu Civil Beat

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Office of Hawaiian Affairs begins fiscal year with new budget

News Release from OHA, July 1, 2025

HONOLULU (July 1, 2025) – The Office of Hawaiian Affairs’ (OHA) biennium budget for fiscal years 2026 and 2027 takes effect today, marking a major milestone in the agency’s commitment to strengthening programs and services for Native Hawaiian communities, while also investing in its workforce.

The newly approved two-year spending plan totals just over $136 million and reflects many months of thoughtful deliberation between the OHA Board of Trustees and the Administration.

“This budget reflects our deep commitment to both our beneficiaries and our employees,” said OHA Board Chair Kaialiʻi Kahele. “Trustees rolled up their sleeves and engaged the details like never before — offering and approving amendments live at the table, line by line, in full public view. What emerged wasn’t just a budget, but a clear, transparent expression of shared priorities for our lāhui.”

A supermajority of OHA Trustees approved the budget on Monday, following extensive discussions to align spending with the OHA Strategic Plan. From the start, Trustees and the Administration agreed on roughly 80% of the budget — excluding increases to travel and personnel costs, which include unanimous, Board-approved salary adjustments for staff earning under $100,000, as well as executive releveling proposed by the Administrator. Deliberations centered on building consensus around the remaining 20% — discretionary funds for programs directly supporting OHA’s mission.

“Our Board and our Administration worked together to move forward with unity,” said OHA Chief Executive Officer Stacy Ferreira. “Our budget reflects our shared commitment to uplifting Native Hawaiian communities and staying grounded in our kuleana.”

Key budget highlights include:

· OHA’s largest-ever investment in Hawaiian Focused Charter Schools;

· Expanded beneficiary services staff to meet growing needs;

· Strong support for Native Hawaiian–led and -focused programs, such as Ka Haka ʻUla o Keʻelikōlani and the University of Hawaiʻi Native Hawaiian Health program, facing federal funding cuts.

· Pay equity adjustments and increases for employees, many of whom have gone years without wage growth;

· Introduction of 12 weeks paid family leave, setting a new standard among state agencies.

“OHA aims to be an employer of choice,” Chair Kahele added. “We can only provide an excellent level of service to our beneficiaries if we also provide our employees with the support and recognition they deserve.”

Ferreira emphasized, “To fulfill the bold goals we’ve set in education, health, economic resilience, and housing, we need both strong programs and strong people. This budget ensures we have both.”

The new biennium budget represents more than a financial plan—it is a declaration of values, shaped by dialogue, unity, and a shared vision for a thriving lāhui.

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