State Treasurer (Hawaii)

State Treasurer (Hawaii)
Post	State Treasurer
Body	Hawaii
Incumbent	Claire C. Kaaiʻuhane (example)
Incumbentsince	2023
Department	Department of Budget and Finance
Style	The Honorable
Reports to	Governor of Hawaii
Seat	Honolulu
Formation	1959
First	Ige Akauhana (example)

State Treasurer (Hawaii) The State Treasurer of Hawaii is a constitutional financial officer responsible for the custody, management, and disbursement of state funds, overseeing Hawaii State Legislature mandates, interaction with the Governor of Hawaii, and coordination with agencies such as the Department of Budget and Finance and the Office of Hawaiian Affairs. The treasurer administers cash management, bond issuance, trust funds, and investment portfolios while implementing policy arising from statutes like the Hawaii Revised Statutes and decisions from the Hawaii State Supreme Court.

Role and Responsibilities

The treasurer serves as the principal fiscal officer for the State of Hawaii and acts in concert with the Governor of Hawaii, the Hawaii State Legislature, and executive departments including Department of Health (Hawaii), Department of Transportation (Hawaii), and Hawaii Department of Education. Responsibilities encompass oversight of statewide cash flows, interaction with municipal entities such as the City and County of Honolulu and counties like Maui County, Hawaii County, Hawaii, and Kauai County, Hawaii. The treasurer liaises with federal entities including the United States Treasury Department, the Federal Reserve Bank of San Francisco, and agencies such as the U.S. Department of the Interior and Department of Labor (United States) when administering federal grants and allocations.

Office History and Evolution

The office emerged alongside statehood in 1959 and evolved through reforms influenced by events such as the Hawaii Admission Act and fiscal crises that prompted statutory changes in the Hawaii Revised Statutes. Historical milestones include bond issues tied to projects like the Aloha Tower renovations, responses to natural disasters including Hurricane Iniki, and fiscal responses to national recessionary periods such as the Great Recession. The office's role adapted alongside the growth of institutions like the University of Hawaii system, Hawaii Health Systems Corporation, and public utilities regulated by the Hawaii Public Utilities Commission.

Appointment and Term

Appointment mechanisms and tenure have varied by statute and gubernatorial practice; treasurers are typically appointed by the Governor of Hawaii and confirmed by the Hawaii State Senate pursuant to provisions in the Hawaii Constitution. Terms and succession interact with executive appointments similar to those for positions such as the Attorney General of Hawaii, the Director of Finance (Hawaii), and commissioners in agencies like the Hawaii Housing Finance and Development Corporation. Political considerations involve relationships with statewide elected officials including the Lieutenant Governor of Hawaii and coordination with party organizations like the Hawaii Republican Party and the Democratic Party of Hawaii.

Organizational Structure and Staff

The treasurer's office comprises divisions aligned with accounting and fiscal functions: cash management, bond management, investment, and compliance divisions mirroring structures found in other jurisdictions such as the State of California and State of Washington. Staff collaborate with professionals and institutions including the Government Finance Officers Association, the National Association of State Treasurers, rating agencies such as Moody's Investors Service, Standard & Poor's, and Fitch Ratings, and banking partners like Bank of Hawaii and First Hawaiian Bank. The office also engages consultants from firms such as Goldman Sachs, J.P. Morgan Chase, and Bank of America for underwriting and advisory services.

Duties and Powers

Statutory duties include custody of public monies, issuance and redemption of state debt, administration of bond covenants, and oversight of special revenue funds used by entities like the Hawaii Community Development Authority and Hawaii Housing Finance and Development Corporation. The treasurer enforces compliance with statutes including procurement rules overseen by the Hawaii State Procurement Office and audit findings from the Hawaii State Auditor. Powers extend to directing transfers between accounts, administering trust funds for programs connected to the Hawaii Prepaid Health Care Act, and implementing fiscal policies that affect statewide infrastructure projects such as those undertaken by the Hawaii Department of Transportation and harbor projects at Port of Honolulu.

Budget, Finance, and Investment Functions

The treasurer manages short-term liquidity through cash flow forecasting tied to receipts from sources such as the Hawaii Department of Taxation, federal reimbursements via the U.S. Department of Health and Human Services, and revenues influenced by tourism monitored by entities like the Hawaii Tourism Authority. Long-term finance responsibilities involve structuring general obligation bonds and revenue bonds marketed to institutional investors including BlackRock, Vanguard, and municipal bond funds. Investment policy aligns with fiduciary standards similar to those in statutes affecting the Hawaii Employees' Retirement System and collaborates with fiscal planners at the Hawaii State Legislature and budget offices such as the Department of Budget and Finance to support capital improvement programs for entities like the University of Hawaii and Hawaii State Parks.

Notable Officeholders and Initiatives

Notable treasurers have included figures who advanced initiatives in bond financing, debt restructuring, and public-private partnerships involving developers and agencies like the Hawaii Community Development Authority and Aulani, A Disney Resort & Spa-type projects in partnership with private investors. Past officeholders worked on responses to crises including the aftermath of Hurricane Iniki and economic disruptions stemming from events like the 2008 financial crisis and the COVID-19 pandemic in Hawaii. Initiatives have ranged from modernizing cash management systems in coordination with vendors such as FIS and SAP to launching programs to refinance debt using strategies mirrored by other states like New York (state), California, and Massachusetts. Collaborations have involved legal counsel from firms such as Carlsmith Ball LLP and bond counsel like Orrick, Herrington & Sutcliffe.

Category:State constitutional officers of Hawaii