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The Honolulu Advertiser
Posted on: Wednesday, February 21, 2007

ON THE MONEY TRAIL
Double-dip on 89-day state deal

By Jim Dooley
Advertiser Columnist

A recent check of files at the state Department of Human Resources Development showed that 38 investigators in the attorney general's office are working under 89-day contracts.

As the contracts expire, the investigators take at least one day off, then come back for another 89-day stretch.

The system allows the employees, almost all of them retired Honolulu police detectives, to "double-dip" — collect full salaries plus their pensions. Workers who stay 90 days on the state payroll must re-enroll in the retirement system and are ineligible for pension benefits.

Salaries for the AG investigators are about $47,500, and some of their pensions can run as high as $70,000 or $80,000 annually because overtime is included in the calculation of final compensation.

Officials say the 89-day system gives government the ability to employ highly trained and experienced personnel without paying for expensive benefits, such as medical coverage and pension contributions.

Critics say the system imposes a "gray ceiling" on civil service, blocking promotions because retirees don't actually leave the payroll.

State files show 89-day contracts are also used to hire someone whom the state really wants or needs but whose employment position isn't in the budget.

At the state Department of Transportation, Kelvin Ogata began his first 89-day contract in July 2002, filling a hazardous material specialist position through three consecutive 89-day terms, paid between $20 to $29 per hour.

A retired Army officer, Ogata is needed to help the state develop and oversee federally required security programs at state harbors, according to state DOT spokesman Scott Ishikawa.

The state wants to hire a permanent staffer for the work but that can't be done until completion of a state "reorganization process, which can be rather lengthy," Ishikawa said.

So Ogata's jobs at DOT since the hazmat slot have included program evaluation analyst (six 89-day contracts) and auditor (now in his fourth 89-day term). In between those two jobs, Ogata did work for nearly two years as a civil service-exempt "security specialist" at DOT that paid $50,000 per year.

The state also uses 89-day contracts to fill jobs that apparently no one else wants, according to DHRD files.

One woman working as a visitor information aide at the airport was reappointed for the 12th 89-day stint in October. A justification for the contract renewal said the aide was "urgently needed ... to assist passengers through security checkpoints. Position currently on recruitment due to incumbent's retirement 12/30/05."

Another aide doing the same airport work was reappointed for the 15th 89-day contract in December.

If you know that a particular money trail will lead to boondoggle, excessive spending or white elephants, reach Jim Dooley at 535-2447 or jdooley@honoluluadvertiser.com