RELATING TO HUMAN SERVICES.

SB2668

THE SENATE

S.B. NO.

2668

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to human services
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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The legislature finds that community-based
organizations across the State provide essential support services on behalf of
the department of human services, including housing assistance, child and adult
protective services, food security programs, vocational rehabilitation, and
care for individuals facing homelessness or crisis.
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Some of these services are mandated by federal
law, such as making home visits to foster children once a month.
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Others, such as outreach services to the
homeless, are top priorities for the State.

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Many of
these state-contracted service providers have struggled to sustain programs
because existing contract rates have remained stagnant for years and do not
reflect the true cost of delivering care.
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Organizations have attempted to absorb these
gaps through fundraising and reserves, but the widening mismatch between
funding levels and community need threatens the long-term stability of these critical
services.

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Since
2010, rising costs have placed a significant financial burden on community-based
organizations.
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In the last fifteen
years, Hawaii's minimum wage almost doubled, and social worker salaries have increased
by forty-five per cent.
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Premiums for state-required
liability insurance have more than doubled due to higher claim costs and legal
settlements.
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Additionally, rising fuel
costs have increased transportation costs for workers or clients and the cost
of commercial office space has also continued to rise.

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The
legislature further finds that some state contracts have been cut.
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The office of youth services has had to cut
contracts with service providers by ten per cent, and has since only been able
to restore these contracts by five per cent.
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Legislative budget cuts and non-recurring
appropriations have also left the office of youth services with contract
commitments exceeding their budget.
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Service
providers have indicated they might be forced to end their contracts, which
would leave the State's youth without safe housing and emergency services.

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A 2022
survey of nonprofits with government human service contracts found that ninety-one
per cent had contracts that did not cover the full operating costs required to
provide the contracted services, with seventy-nine per cent having to cut
administrative costs to maintain services.
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These community-based organizations also
report trouble attracting and keeping experienced staff due to being unable to
offer competitive wages.
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This situation
is unsustainable and threatens the stability of Hawaii's social services
infrastructure.

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Accordingly,
the purpose of this Act is to appropriate funds to the department of human
services to issue supplemental contracts to community-based organizations to
address increases in costs related to labor, insurance, utilities, rent, and
gas.

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SECTION
2.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2026-2027 for the department of
human services to issue supplemental contracts to community-based organizations
to address increases in costs related to labor, insurance, utilities, rent, and
gas; provided that the funds shall be equitably distributed and allocated as
follows:

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(1)
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$
for child protective services (HMS 301);

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(2)
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$
for adult protective and community care services (HMS 601);

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(3)
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$
for vocational rehabilitation (HMS 802);

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(4)
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$
for homeless services (HMS 224);

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(5)
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$
for general support for child care (HMS 302);

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(6)
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$
for general support for self-sufficiency services (HMS 903);

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(7)
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$
for general support for health care payments (HMS 902); and

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(8)
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$
for in-community youth programs (HMS 501).

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The sum
appropriated shall be expended by the department of human services for the
purposes of this Act.

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SECTION 3.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Community-based
Organizations; Program Costs; Department of Human Services; Appropriation

Description:

Appropriates
funds to the Department of Human Services to issue supplemental contracts to
community-based organizations to address increases in costs related to labor,
insurance, utilities, rent, and gas.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.