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of a domestic water system on Molokai; commercial leasing; development, design, and construction of residential subdivisions; and financing loans for homes, ranches, and farms. DHHL also recently began to provide economic development services to native Hawaiians. DHHL employs a staff of approximately 90 people and contracts for certain services such as the planning, design, and construction of residential subdivisions improvements, and agricultural technical expertise.

Funding for DHHL programs is provided by State of Hawaii general obligation bonds and DHHL's revenue receipts. The State of Hawaii provided approximately $6.2 million during fiscal year 1981 and DHHL's receipts totaled about $6.4 million. The five primary sources of DHHL receipts are interest income, lease rent, principal repayments, receipts from sugar cane land leases and water licenses now specifically earmarked for the Native Hawaiian Rehabilitation Fund, and miscellaneous receipts (primary rock and sand sales and pasture and water fees). Receipts for fiscal year 1981 were as follows:

{- |Source |Amount |- |Interest-loan funds |$1,884,181 |- |Interest-investments in time certificates of deposit |740,260 |- |Lease rentals |1,418,803 |- |Native Hawaiian Rehabilitation Fund |1,015,916 |- |Miscellaneous |231,673 |- |Loan principal repayments |1,139,090 |- | | |- |Total receipts |$6,429,923 |}

Seven revolving funds and eight special funds have been established to account for revenues and expenditures under the Act. The funds and sources of revenues for each are shown in Table 66. In addition, DHHL is responsible for approximately 50 bond fund accounts.

DHHL's administrative and operational activities are funded by commercial leasing revenues subject to budget approval by the State legislature. As previously shown, DHHL has 92,239 acres of land under general leases, for which income of about $1.4 million was received in 1981. Thus, about 50 percent of the available land is currently used to obtain funds for DHHL administrative needs. The DHHL has a stated goal to substantially reduce the acreage of lands under general lease and make these lands available for direct use by native Hawaiians. In order to maintain sufficient income to administer the program and yet reduce acreage under general lease, the DHHL plans to focus on high revenue commercial and industrial use leases.


1. Although land is the essential element of the Home lands program, effective accountability for the land has not been established.

a. The DHHL does not have a complete or accurate inventory of the 203,500 acres of "available lands" as designated under the Act, nor of the 190,000 acres that DHHL now claims responsibility for. A major obstacle in establishing accountability for the lands is the absence of a description of "available lands" and a complete survey of the lands. DHHL does not have the necessary resources to research and develop a comprehensive land inventory system.

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