Honolulu’s Office of Economic Revitalization is ceasing operations this Friday — a decision made weeks after the City Council cut a majority of its funding and staff positions in early July.
Honolulu Mayor Rick Blangiardi had originally vetoed parts of the Honolulu City Council’s budget after seeing the proposed cuts, and later pushed the council to restore the full $2.9 million for OER. But his veto was overturned, and the council went ahead with the cuts, leaving about $1 million to fund the office, which OER officials said would effectively gut it.
Mayor Blangiardi spoke to HPR after the office announced its closure, stating the council’s choice to cut its funding was a “mind numbing” decision and that the override of his veto was a “slap in the face” to the administration.
“At the end of the day, it's the end users, it's the people, the thousands of lives that are going to be impacted as a result of us not having that capability to help them. That bothers me. It bothers me deeply,” Blangiardi said. “It should concern everybody on this island that our city council would be so shortsighted to do something so reckless to the detriment of this community. It is wrong. I have no better words to say. It's just flat-out the wrong thing to do.”
Council Members who voted to cut the funding said the office has not done a good enough job of supporting the county’s economy, which was largely based on an audit report that stated the office had received hundreds of millions in funding without much to show for it. It also found that many of the services provided under OER were duplicated at some capacity at a county or state level.
At the July 8 full council meeting, Budget Committee Chair Val Okimoto stated that even with the limited funding, OER would still be able to function.
“Despite the narrative being portrayed in the media, we are not defunding OER,” Okimoto said. “OER is suffering from a textbook example of mission creep … (the council) has a fiduciary responsibility to make sure the final budget reflects the real needs of residents and what government can deliver, which is responsible, transparent, accountable and intentional.”
But those who support OER said that although it was established as a COVID-19 response, it has evolved to help thousands of residents with disaster relief, starting their small businesses and recovering from economic hardships.
The council meetings gathered dozens of testifiers in support of OER, citing their personal experiences with how the office and its staff assisted them over the past six years.
“While OER as an office is coming to a close, many of the relationships, partnerships, and programs built will continue through other City departments and the community organizations that have carried this work alongside us,” OER’s closure announcement reads. “We are grateful to have played a part in building a stronger local economy for Oʻahu, and confident that this community will continue to carry that work forward. It has been our honor to serve alongside you.”
OER will officially cease operations on Aug. 14, and the five remaining staff will transfer to other city government departments.
