The smears of summer

Watch out, the smears are coming.

Just a coincidence? On the day that the HGEA endorsements of Mufi Hannemann and Brian Schatz were announced, a comment was submitted here (but not approved) taking a wildly unfair shot at L.G. candidate Brian Schatz.

The comment appeared to be well-sourced, with enough citations to Hawaii laws and using some specific figures in a way that made it seem plausible. But a closer look shows that it was very factually incorrect, misleading, and unfair.

In brief, it charactized (or mischaracterized) Helping Hands Hawaii, the nonprofit that Schatz directs, as administratively top-heavy and straying from its primary purpose, implying that the group has improperly used state funds intended for “school repair and maintenance.”

That looked odd to me, so I looked up the statutes cited as well as the history of the group.

Helping Hands Hawaii was started back in 1974 as the Volunteer, Information, and Referral Service.

In 2001, the legislature, under pressure to deal with a growing backlog of needed school repairs, moved to clear the way for public-private partnerships for repair and maintenance. Helping Hands Hawaii was designated to administer a new fund, and to solicit funds and give grants for school repair projects, with an annual independent audit of the funds (see SB493). This took place before Schatz was associated with the organization.

Two years later, in 2003, this responsibility was transferred to a new nonprofit organization, Hawaii 3R’s by SB58.

According to tax returns filed by Helping Hands Hawaii, Schatz took over as president of the group during 2003, as the school repair responsibilities were being shifted over to Hawaii 3R’s. So the implication that Helping Hands Hawaii was somehow shirking its school repair and maintenance responsibilities five years later, in 2008, was totally wrong.

Oh, and the allegation that the organization is administratively top-heavy?

According to its most recent tax return, less than 5% of its $6+ million budget goes to administration and management. That’s a very good record.

Lesson: Beware those anonymous hits at this time of the season. Do a lot of checking before giving them any credence.

Same lesson applies to the letter referred to by Keith Rollman, in which allegations of pay-to-play deals at the city are wrapped around relationships between several people in Mufi Hannemann’s campaign. Also circulating about the same time as the HGEA endorsements. Reader beware.


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20 thoughts on “The smears of summer

  1. Leinanij

    The same applies to people who write nice comments in the paper about Mufi. They don’t identify themselves as a consultant for the City. It would be too much to ask I guess for a little transparency when it comes to politics. sigh

    Reply
    1. Anonymous

      I find it curious that you are concerned about anonymous “nice comments in the paper about Mufi,” but seem to be fine with the anonymous vile slander and name calling.

      Reply
    1. Ian Lind Post author

      Helping Hands Hawaii’s 2008 federal tax return reports W-2 compensation of $92,772 for CEO Brian Schatz and $71,308 for chief financial officer Laureen Furuya.

      I did a quick check of Boys & Girls Clubs of Hawaii, which has an overall budget of approximately the same size. It’s only a rough comparison, and obviously there are other comparable groups in town.

      In 2007, Boys & Girls Clubs reported compensation of $87,331 to Melissa Trew, director of operations, and $83,430 to executive Director David Nakada.

      Keiki O Ka Aina Preschools, Inc., which has a budget of about $3 million, quite a bit smaller than either of the other two organizations, paid its executive director $99,889 in 2008, and its director of early childhood education received $76,935.

      Reply
  2. wlsc

    Anyone can see IRS 990s for non-profits — 501(c)3 — that are required to file them. It’s very enlightening.

    Go to Guidestar.org and do a search after signing up for free. Your free account will let you see the three most recent years of IRS 990s; a paid account will let you see much more.

    Reply
  3. interested reader

    Thank you very much for the additional information. I thought it was out there somewhere, but didn’t know how to find it.

    Reply
  4. Badvertiser

    Unfortunately, the people now in charge of the paper’s opinion pages don’t have the expertise to recognize puff letters from real letters. Maybe they’ll learn. Too bad it’s an election year when we really could use experienced managers.

    Reply
  5. Factchecker

    Ian,

    Am looking at the HHH’s 990 for 2008 in Guidestar.org and see that Brian’s compensation was a total of $103,575 which was $92,772 in salary and $10,803 of “other compensation” for the correct total of $103,575 from 2008 total revenue of $5,579,342. Revenue in 2007 was $6,010,809. BTW, that’s a small non-profit, hardly training ground for a high-level state executive. Yet 6 figures to the Exec. Dir. on that amount of revenue, for a ‘social service’ organization is noticeably high.

    Of even more interest is that total “Salaries, other compensation, and employee benefits” were $3,684,214 in 2007 and $4,101,227 in 2008…WOW! That’s shockingly high. Where’s the social service?

    We can delve further if you like, Ian?

    Reply
    1. Ian Lind Post author

      You can choose to compare either on W-2 wages/compensation or compensation plus benefits. Comparing to other organizations have to consider the same numbers.

      I identified at least a couple of additional organizations, about the same size or smaller, with salaries generally in the same range.

      So I have to question your assertion that this is “noticeably high” for an organization of this size.

      Salaries vs. total expenses really just depends on the kind of organization. You ask: “Where’s the social service?” Those salaries apparently pay people who provide those services. Again, their tax return shows most going into program services rather than management.

      In addition, the Helping Hands Hawaii board appears to be quite strong, at least in terms of makeup.

      Although you’re obviously interested in planting doubts about Helping Hands Hawaii, your argument so far is weak.

      Reply
    2. Clue

      You do realize that social services are primarily provided by people … who get paid … their salaries … by the organization …

      “Factchecker” needs a brainchecker, methinks. Where’s the common sense?

      Reply
  6. Former Tiser Staffer

    Badadvertiser-not true, the people running and working in the opinion section of SA did the same at the Bulletin and Advertiser. Could be their boss calling the shots.

    Reply
  7. Breaking News!

    Ahhh yes…the StarAdvertiser has returned true to form with apparently the same people running the “Breaking/Updates” section on the web.

    When the SA first came out, there was no breaking news. Now, just like the Honolulu Advertiser, every little sports score/injury/trade is considered breaking news again.

    I’m waiting for them to repeatedly hype business propaganda press releases for a week straight on the same subject like the old HA did so shamelessly, all the while pretending it’s new and breaking everyday, even changing the date and time to make it seem like a new announcement.

    Reply
  8. uhhhhh ....

    This is the current list of today’s SA breaking news. Your argument is that THESE stories aren’t significant? What planet are you on? And exactly what kind of news are you looking for? lol

    * Judge keeps gay marriages in California on hold
    * 14 people indicted on mortgage fraud charges
    * Ewa wins PONY Bronco World Series title
    * Man charged in Kona beer-bottle assault
    * Empty house burns near Keaau Beach Park
    * Hawaiian steps up Airbus
    * Electric car test drives offered
    * Police arrest 2 who allegedly posed as military personnel
    * Honolulu lifts Pacific Office revenue
    * Travel group seeks Hawaii companies for Russian expo

    Reply
    1. Uhhhh

      Just wait till the afternoon news. I look at it all day. They also change the lineup and add in real news afterwards, but insert it at earlier timestamps as if they actually listed it at that time. But in real time it wasn’t really there – they just backtime it.

      Reply
    2. Breaking News!

      There are 12 Breaking/Updates as of now, 7:55 a.m. on August 13. Here are a few of the 12:

      *Chargers LB Merriman tweets that he’s signed tender
      *Soccer star Kaka rejects doctor’s ‘career in jeopardy’ claim
      *Trojans will cut down on contact

      Breaking News? Hardly.

      Reply
  9. bob

    thank gosh your not censoring comments but instead moderating them….perhaps last election when you said Iwase (Governor) was front runner in Chinatown gambling circles your information was not correct but well planted…..stop it malia!

    Reply
  10. Factchecker

    Looking at the past 10 years of financials for the Democratic Party of Hawaii, http://www.campaignmoney.com, it does look like fundraising at the Democratic Party of Hawaii is way down from when Schatz took it over in May 2008 thru Dec. 2009. The Party was doing better in the cycle before Schatz and by the below data appears to be doing worse in the cycle immediately following Schatz’s term. Quite the “turnaround.”

    Reply
    1. Ian Lind Post author

      Thank you for this straightforward comment.

      But I don’t think the data you cite support your point. First of all, this looks at party finances, which are dependent on many other factors, rather than party organization or success at the polls, which are really the key outcomes. Second, those outside factors–competition for money, financial condition of the country, etc. It’s no wonder that party fundraising is down this year with the economy still hurting and contested gubernatorial and congressional races competing for funds with the regular slate of candidates. Third, Schatz was in the party post for a period that straddled the 2008 and 2010 election cycles, so it’s hard to attribute praise or blame to him based on the full election cycle numbers. And, of course, the 2010 election cycle numbers reported so far are incomplete, since the reporting period extends to the end of the year.

      I know you are trying to show a case against Schatz using whatever you can find. But, as I say, I don’t think your numbers here support your point.

      Reply

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