The holiday season is upon us, but our topic today is not about spending for聽presents. We are going to talk about government spending 鈥 too little spending.

Why should we be concerned about too little government spending when we聽don鈥檛 have boatloads of money to spend?

It turns out that a number of our government agencies are receiving federal聽grants. Yes, Uncle Sam is giving us money. But we are not spending that money, so聽the federal agencies are saying, 鈥淟ooks like you don鈥檛 need this, so why should we give聽you any more?鈥

Hawaii gets a lot of money from the U.S. government, but state agencies sometimes fail to spend it fast enough. Flickr: Sheree Zielke

On Nov. 5, our Senate Ways and Means Committee held a hearing on this聽matter. It heard from our Department of Transportation, which has a backlog of over聽$650 million in federal funding for highway projects 鈥 and the federal agency wrote us a聽letter 鈥減raising鈥 us for reducing the balance down to that number from, well, 2010, when聽the unspent balance was $940 million.

There is an additional backlog of about $66.5聽million for airport projects. The Department of Hawaiian Home Lands can鈥檛 spend $55聽million in federal housing funds for Native Hawaiians, so HUD is suspending additional聽funding.

The Department of Health must commit $28 million in new loans and spend聽$7.6 million by the end of January, or Hawaii stands to lose $8 million for improving our聽drinking water infrastructure.

Why can鈥檛 we spend the money? Let’s look at the highway funding, which聽represents the biggest chunk.

It was given to us for large construction projects, mostly聽bridges and highways. DOT told the Senate committee that there were 鈥渧arious issues聽that delayed these major construction project(s), including environmental issues, bid聽protests, utility and rights-of-way issues, and others.鈥

We pointed out in a previous聽article that Hawaii was found to have spent $90,000 in administrative costs per state-controlled聽highway mile while Kentucky spent $900 鈥 it鈥檚 worth looking into what the聽prior study found to see how (not if) administrative processes can be overhauled.

If we聽look into the other agencies’ issues, the problems probably will be similar.

The State Auditor鈥檚 Office recently issued a study of state departmental聽engineering sections that manage capital improvement projects. Almost all of the聽backlogged work is for such projects.

The auditor asked agencies whether these聽projects should be managed centrally, perhaps by the Department of Accounting and聽General Services, and the response she received was an overwhelming 鈥淣o!鈥

础蝉听justification, the agencies cited issues relating to, for example, managing federal funds.聽Meaning, “We can do this right, so we don’t need any kind of central oversight.”

In the Senate hearings, the Department of Budget and Finance noted that it uses聽software called the Federal Award Management System, which can track the聽progress of federal awards 鈥 if it gets the cooperation of the agencies involved.

This is not a small problem. The state receives about 300 separate federal聽awards each year that account for about $2.5 billion in federal funds. This makes up聽roughly 20 percent of the state鈥檚 revenue, so we shouldn鈥檛 waste time with turf fights.

Let鈥檚 be clear here. We better not mess around when it involves receiving聽federal money. If we do, the feds may close their wallet and our government will have聽to make up the cost somehow 鈥 most likely by coming to us taxpayers to pick our聽pockets once again.

It鈥檚 not unreasonable for a federal funding agency to ask us to聽spend the grants that it awards. And state agencies should not have a problem with聽Budget and Finance looking over their shoulders to see if there are inefficiencies and聽hold-ups on our side.

If issues are found, they need to be rooted out. Now. So we can聽spend more, courtesy of Uncle Sam’s generosity.

Community Voices aims to encourage broad discussion on many topics of community interest. It鈥檚 kind of a cross between Letters to the Editor and op-eds. This is your space to talk about important issues or interesting people who are making a difference in our world. Column lengths should be no more than 800 words and we need a current photo of the author and a bio. We welcome video commentary and other multimedia formats. Send to news@civilbeat.org.聽The opinions and information expressed in Community Voices are solely those of the authors and not Civil Beat.

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