the people of Hawaii. And the House vigorously supports the efforts of the Department of Hawaiian Home Lands to develop lands and provide loans for the creation of affordable housing for Native Hawaiians. This effort is an integral part of a comprehensive State program to provide safe and decent housing for all the citizens of Hawaii.

In this regard, the House supports the efforts of the Department to increase the rate of the homestead development. In 1988, the Legislature, at the insistence of the House, made a major shift in its policy towards support of the Department of Hawaiian Home Lands. Before that time, the Legislature had always required the Department of Hawaiian Home Lands to cover all of its operating expenses with funds generated through its programs, while the Legislature provided funds for capital improvements.

Beginning with the 1988-89 fiscal year budget, the Legislature began appropriating money to cover much of the operating expense, as well as the capital improvements expenses of the Department's work. In the budget for the current and future fiscal year, we appropriated general funds to cover all the operating expenses of the department, as well as significant amounts for capital improvements.

The revenues generated by the Department to be used by the Department were left to cover special revenue bonds the department has been authorized to issue. This brings our policy toward the Department of Hawaiian Home Lands into line with the administrative funding policy toward all other State departments. In all my years in the House, this policy change is one of the accomplishments of which we can be proud of.

In addition, in 1987 the House of Representatives declared its intention to seek to provide Native Hawaiian individuals and organizations the right to sue to resolve controversies relating to the Native Hawaiian public trusts. This effort resulted in an arrangement made by the State Administration to establish a framework to allow such suits against the State of Hawaii.

One difficulty facing the Department of Hawaiian Home Lands in their efforts to develop homesteads for Native Hawaiians is the rough and barren nature of much of the land which was set aside in trust for this purpose. To address this problem, in the 1989 Legislative Session the House proposed to have the State Administration identify lands which would be more suitable for homesteading which could be exchanged for lands currently controlled by the Hawaiian Homes Commission which are not as well suited for homesteading. However, this bill failed.

Finally, the Legislature has, in recent years, significantly increased the amount of capital improvement funding provided to the Department of Hawaiian Home Lands for the development of roads, water and sewer lines, and other forms of infrastructure needed to permit construction of homes on Hawaiian Home Lands. In closing, the House views the Department of Hawaiian Home Lands programs as an important component of the State's efforts to address housing difficulties, and has supported an increase in the level of State as well as Federal resources provided to the Department to accomplish its goals.

I'd like to thank you, Senator and committee members, for this opportunity for me to testify. Thank you very much.

[Applause.]

[Prepared statement of Mr. Kihano appears in appendix.]

The CHAIRMAN. Mr. Speaker, I thank you very much on behalf of the joint committees, and I wish to commend the members of the State Legislature for the enlightened approach to assisting the Hawaiian Homes people. I think the bonding program that you have carried out and the capital improvement program will most certainly enhance the lifestyle of our Native Hawaiians, and for that I congratulate you.

Mr. KIHANO. Thank you.

The CHAIRMAN. Congressman Akaka.

Mr. AKAKA. Thank you very much, Mr. Chairman.

I, too, want to commend you, Mr. Speaker, for your work with your body, the House, and also with the needs of Hawaii. I am elated at the focus, as well as the contributions your body has made to help the infrastructures of Hawaiian Home Lands and all the costs of capital improvements that are necessary. This has been the reason why Hawaiian Home Lands has really moved ahead. And it has been through your efforts, as well as the efforts of the Governor and the State Government. Thank you very much.

Mr. KIHANO. Thank you.

The CHAIRMAN. Mr. Blaz.

Mr. BLAZ. I don't have any question, Mr. Speaker. I just want to thank you for coming. I enjoyed your presentation very much-and this is coming from a fellow member of the House of Commons, as contrasted as a fellow from the House of Lords. [Laughter.]

Mr. KIHANO. Thank you.

Mr. FALEOMAVAEGA. I'd certainly like to commend the Speaker for a beautiful presentation this morning, also. And I am also gratified at the fact that the State Legislature is looking seriously into this problem that I had mentioned earlier about this 9.1 to 9.5 gradation which I feel is very, very bad. I'm just curious, Mr. Speaker, about this community-based program. The concern that I have is that the schools out there in the districts out in the country are going to be stereotyped again in a very negative way, having the least resources that may be made available to them in really giving them the opportunity.

Here's the problem I have, Mr. Speaker. If you get an island student to tell them how many apples are in an apple tree he'll have no idea because there are no apples here on the island. But if you ask an island student how many coconuts there are on a coconut tree he'll have a much better aptitude in telling how many coconuts are there than you would a student from the State of Washington.

[Applause.]

Mr. FALEOMAVAEGA. And it boils down to the problem of aptitude tests. I imagine this has been the structure of our whole educational system that I find very troublesome to any Native Hawaiian student and any Samoan student-any student who is not adequately given that kind of orientation. But this community thing that you have indicated, I hope, Mr. Speaker, will be towards that direction in really giving the real root orientation that our students need.

Thank you very much. [Applause.]

Mr. KIHANO. I realize what you're saying, because I was part of that system. And I was fortunate to be put into the 9.1 situation.

(Laughter.]

Not because of my aptitude, but because maybe I was good looking. [Laughter.]

Mr. FALEOMAVAEGA. Mr. Speaker, here's the problem I have with this. If you started as a sixth grader from 6.1, for the next 6 years you have no chance-other than the fact that you are already stereotyped, you're going to be 6.1, 6.5, 7.5, 8.5 all the way up to 12.5. For the next 6 years psychologically that classmate of mine is not going to have any sense of confidence in himself that he can put himself through school despite this psychological labelling he's dumb. And that really disturbs me. It really disturbs me. [Laughter.]

Mr. KIHANO. Thank you for reminding us. Thank you very much. The CHAIRMAN. Nearly four decades ago it was my great honor and pleasure to work with one of the acknowledged fighters for Hawaiian causes. Many of the old timers will remember his name, he was Willie Crozier. Today we are fortunate to have his son with us who continues this tradition of fighting for Hawaiians, and today he serves as the Chairman of the Senate Committee on Housing and Hawaiian Affairs of the Hawaii State Senate. Ladies and gentlemen, I am pleased to welcome the Honorable Michael Crozier. [Applause.]

STATEMENT OF HON. MICHAEL CROZIER, CHAIRMAN, STATE SENATE COMMITTEE ON HOUSING AND HAWAIIAN AFFAIRS, HONOLULU, HI

Mr. CROZIER. Senator, Congressmen, people of Hawaii, aloha. [Chorus of aloha.]

Mr. CROZIER. Thank you, Senator, for mentioning my Dad. You just put a frog in my throat, but thank you for mentioning him. May I summarize my testimony, and also even divert occasional

ly?

The CHAIRMAN. I can assure you that your full statement will be made a part of the record. You can present it any way you wish to. Mr. CROZIER. Thank you, sir.

I appreciate your opening remarks, because I was one of these people who had concerns about you and the committee coming to Hawaii, having the hearing, and going home.

Just 2 weeks ago many of us legislators and council people went out to the homeless and slept out on the streets with them on Sand Island. Every place I went as I talked to the homeless they said, "Hey, you're just here to have a good time and see how we live, and then you're going home and you're going to forget about us." I kept having to tell them, "No, I am committed. Representative Joan Hays from the Housing Committee is also committed." I kept having to say that. And when I came to testify I had the same opinion that you were going to come here-just like the homeless, we're all the same type of people-you were going to come here,

excite everybody, get everybody stirred up, and then you were going to go home.

My concern is-I am the Chair of the Housing and Hawaiian Programs Committee. There is no more action-packed committee in the Senate than the Hawaiian Programs Committee.

[Laughter and applause.]

Mr. CROZIER. So if you do read my remarks and in there I talk about you waking the sleeping giant and people will be testifying and picketing outside and across the State, I feel very good that you and the committees will be staying the course and helping us resolve the problem.

Thank you very much Senator and Congressmen.

[Applause.]

Mr. CROZIER. I'd like to touch on three points. First, the StateFederal relationship; second, governance; and then finally, recommendations on what Congress can do to help us.

We've been a State for 30 years. We are a very progressive State. In fact, many of the other States in the Union look to Hawaii for leadership. We are also a State that has an understanding heart. We have made a commitment to the Hawaiian people, and we have followed through with that commitment.

It has been a progression-slow progression. If you look in the last 3 years-we keep talking about the sins of the past, and you're going to hear a lot about the sins of the past. But if you look in the last three years at what has been done for the Hawaiian community and primarily Hawaiian Home Land, the State Legislature has authorized over $80 million worth of funds through cash, through general obligation bonds, through general funds, and also through revenue bonds. This is going to open up a whole new arena or potential for the Hawaiian people.

If the Federal Government would chip in a little bit more, we could accelerate the programs a lot further. [Laughter.]

I'm sure the Chair of the Hawaiian Homes Commission will talk about that more in detail, but I'd just like to say that we have made the commitment. There is still a lot of interaction going on between the Legislature and the Executive Branch and the Hawaiian Homes Commission. One area that I'd like for you folks to take a look at is when you go to the island of Maui the Hawaiian Homes Land has 6,000 acres which is called the Kula Lands.

The Kula Lands stretch from way up in the top of the mountain 6,000 feet all the way down almost to Kehei. And Kula is the top side. So when all of us decisionmakers talk about the Kula Lands, we have this idea that they are way up there. And arguments that we are fighting right now are over how we are going to get water to the Kula Lands. Perceptions. All you've got to do is think like any developer does. I spend 18 years in the construction field. Any time you are going to make a development you do not start at the top of the mountain, you start at the bottom of the mountain because everything that has to flow downhill flows downhill. You cannot start at the top and expect-what are you going to do with your waste? It is trapped up there. You develop from the bottom up, and that's how it comes along.

I still have to convince our Hawaiian Homes Department that's the way to go.

Also, on a more serious note, if the jobs are down in Kehei, all the jobs are there. There are no jobs up in Kula. There are a few jobs up there, but not very much. Most of the jobs are in Kehei. If we can start from what I call-instead of calling it the Kula Lands, I call it the Kehei Mauke Lands. We start from the bottom up. The people can be placed on the lands very soon, and the job base is there. That way we could solve two of the very critical problems that are facing the nation and Hawaii. First of all, housing and job base. We could uplift all of the recipients and their quality of life. The State has made the commitment.

Now, I'd like to go into governance. From the time when the Hawaiian Homes Act was implemented there was very little self-determination. It has moved. It has progressed forward. It has not progressed because of the good will of the politicians. The recipients and the potential recipients had to intervene and move the agenda.

Early on, different governors of the Territory of Hawaii sat as the Chair of the Hawaiian Homes Commission. If you've got the governor sitting there who was appointed by the President, there is no self-determination. That has evolved. Now, since we have become a State, we have all Hawaiians sitting on the Hawaiian Homes Commission, and they have proven themselves to be dedicated, responsible individuals.

May I just remind our Senator Inouye and Congressman Akaka and enlighten our two guests that in 1978 there was a controversy where the governor wanted the Hawaiian Homes Commission to take a position. The Commission refused to support the governor's position and they were ready to resign en masse. The Hawaiian Homes Commission has shown its strength.

You can see the evolution. During this period of evolution the Hawaiians were after self-determination. You talked about my Dad. My Dad did make a commitment to the Hawaiian people. My uncle, who was a homesteader on the Island of Molokai, was part of the Pac Pine. Maybe some of the real old people can remember Pac Pine. Well, they started to have a cooperation of homesteaders so they could package the pineapple. They didn't make it. They went bankrupt. But they tried. They were after self-determination. We have been moving along.

In 1978 we had the Constitutional Convention, and in that forum we created the Office of Hawaiian Affairs. The Office of Hawaiian Affairs is the continuum of self-determination. This is to allow Hawaiians to choose their leaders. Uncle Leon Sterling, who was sitting here and gave the Pule earlier on, was one of the key players in creating that. I was a member of the Constitutional Convention and also a member of the committee.

Senator, you mentioned Kaahumanu, who was the Victoria of the Hawaiian people. I believe at some point in time we will also recognize a lady who will have her place high in Hawaiian history, and that's Auntie Frenchy De Soto. If it wasn't for her, OHA would not be here today. Auntie Frenchy, wherever you are, I love you. Aloha.

[Applause.]

Mr. CROZIER. As you look into governance, take a look at OHA. Many of us in the Con-Con believe that when it is time for the Ha