HI SB2668

Appropriates general fund money to the Department of Human Services for fiscal year 2026-2027 to issue supplemental contracts to community-based organizations covering increased costs for labor, insurance, utilities, rent, and gas.

Funds are allocated across eight program areas: child protective services, adult protective and community care services, vocational rehabilitation, homeless services, child care support, self-sufficiency services, health care payments, and in-community youth programs.

Community-based organizations provide essential services including housing assistance, foster care, food security programs, and homeless outreach, with many contracts failing to cover actual operating costs for over a decade.

A 2022 survey found 91% of nonprofits with government human service contracts reported funding that did not cover full operating costs, with 79% cutting administrative expenses to maintain services.

Hawaii's minimum wage has nearly doubled and social worker salaries have increased 45% since 2010, while liability insurance premiums have more than doubled, creating unsustainable financial pressure on service providers.