SHOCKING FINANCES:
New FEC Report Exposes Hawaii GOP's 'Red Ink' Financial Disaster


Aloha Republicans:
 
Well, it's NOT pretty.
  The latest official financial health report concerning the Hawaii GOP was posted over the weekend by the Federal Elections Commission (FEC).  The report, officially prepared and approved by state chair Shirlene Ostrov's state treasurer and running mate Gwen Honjo, is a complete 'red ink' disaster and a damning indictment of the entire Ostrov 'turnaround leadership' team.

It's a crime.   Hawaii GOP state officers seem as determined as ever to run a substantial financial deficit each month by allowing exorbitant, wasteful administrative overhead (in red) to completely swallow up all donor funds, with not a penny left (or even budgeted) for the party's primary mission of making it easier for brave GOP candidates to win.  That means no campaigning, no canvassing, no telemarketing, no lobbying, no polling, no advertising, no voter registration nor anything else which wins elections or impacts public policy.

 
As HIRA reported last week , party chair Shirlene Ostrov has actually proposed an official budget for the state GOP which continues to divert 100% of donor funds to overhead while Ostrov privately confesses to the State Committee this is NOT the way worried Republican donors would want their money to get exclusively spent.  Still, she's moving ahead and doing it anyway.  Auwe!!
 
It's truly stunning
(in the bad way).  Instead of the massive deposits of cash we were told to expect from many, many new party donors -- the precise assurance by Ostrov and Blackburn during their statewide campaign to take over the state GOP -- these puppets of Hellreich and Saiki have turned in an incredibly dismal performance as party leaders.  In fact, under failed past chairman Fritz Rohlfing, the party actually raised MORE MONEY in one month than GOP finance chair and Democrat donor Mark Blackburn has brought in from new donors (other than himself) over two months.
 
This shocking new report released over the weekend by the Federal Elections Commission (FEC) clearly shows how EVERY PENNY of donor money is continually wasted on a large underutilized 'ghost town' suite of offices which the state party cannot afford.  These are office expenses for the Hawaii GOP's overpriced offices which aren't even being used for phone banking, canvassing, mailings, or anything else that might justify such a huge expense.
 
Historically, even when the Hawaii GOP holds one or more large fundraisers per year, every penny of the proceeds have been spent on administrative overhead during the months following those galas; with Hellreich's minions merely drawing down the funds with each passing month on wasteful expenses.  Monies do NOT find their way to campaigns or political activity, guaranteeing it will remain unlikely that Republicans will get elected in 2018 or beyond.
 
That's brings us to another major revelation from the Federal Election Commision.  The 'banking' of past fundraising proceeds by the Hawaii GOP collected via specially-held 'mortgage' fundraisers to collect dedicated monies exclusively for payment of the state party's massive office expenses has nearly all been DEPLETED
by RAIDING 'the mortgage fund' to pay for all overhead for the overpriced party headquarters.  As a result, the party's cash-on-hand is really pitiful.  Not even enough to last two months.
 
In fact, Ostrov's new budget for the state party actually plans to waste EVERY PENNY of the projected $120,000 in ticket sales proceeds from the party's upcoming Huckabee fundraiser on administrative overhead.  You can bet that the obscene truth of this situation will be avoided in the 'sales pitch' by party leaders to sell these tickets.  Instead, the phone script will be more like, "Please buy tickets so we can get Republicans elected."  Yet, when a state party spends nothing to win elections while overspending every dollar from donors on extravagant office suites and maintenance fees, the Democrats have got to be grateful that Hellreich, Saiki, Blackburn and Ostrov are deliberately holding the GOP back from putting up any kind of fight against Democrats.
 
The situation at the state party has gotten so bad that Al Frenzel, who claims to be the Hawaii leader for Donald Trump's campaign, weighed in by writing and distributing a stunning campaign 'surrender memo' to all Hawaii GOP leaders just last week -- announcing that Hawaii was a lost cause because our state is too far gone politically in the progressive direction.  Begging the natural question "What's the Point of having a GOP in Hawaii?", Ostrov's own loyal supporter and defender Frenzel also declared that the hopeless Hawaii Republican Party was no match for the resources and knowhow and power of the ruling Democrat party.  While waving his proverbial white flag, the dedicated Ostrov delegate recruiter Al Frenzel repeatedly advised state and local Republicans against being too Republican; instead urging that Republican candidates be even MORE like Democrats.  Apparently unbeknownst to Frenzel, while his sincere wish has already been completely granted for the past 20 consecutive years under RINO's Miriam Hellreich and Pat Saiki, following advice from Frenzel and other party RINO's has already resulted in the GOP plummeting from 22 elected Republicans down to just 5 during the past two decades.  Bad idea!
 
So, with Frenzel calling for a renewed commitment to Hellreich's and Saiki's failed political strategy of doing nothing,
the official 'stand down order' remains in effect .  With just one week to go until the special session for rail funding at the State Capitol -- when greedy Democrats (and pro-tax hike RINO Bob McDermott) will push again for higher taxes -- Ostrov decided to let the golden opportunity slip away;  the unique opportunity  when Ostrov could have positioned Hawaii Republicans as the party of lower taxes; instead deliberately allowing RINO's Hellreich and Saiki to sideline the inactive state party and forcing the state GOP to remain completely silent so that NO CONTRAST AT ALL will be drawn between Republicans and Democrats between now and Election 2018.
 
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As shown by the negative reaction of past party donors who are being tightfisted and withholding funds by the millions of dollars, the kind of folks who might write checks (or donate online) to the Hawaii GOP are severely unimpressed with seeing their dollars flushed down the toilet of excessive party overhead rather than taking the fight to the Democrats during the two year cycle between each election.

 
And the numbers don't lie.   With the Hawaii GOP completely silent about issues and running a 20-year losing streak under party boss Miriam Hellreich, very few donors are footing the bill for this RINO political charade.  ONLY 15 DIFFERENT PEOPLE DONATED TO THE HAWAII GOP IN JULY 2017, according to the FEC.  Ten of these were state party leaders who were embarrassed about the fact that ONLY FIVE other people in a state of 1.3 million people gave money to the state party.  Just 15 donors, with merely 5 from outside the party leadership.  Totally abysmal.
 
Take former party treasurer Mary Smart. 
Not a penny of her $1,000 donated in July was used to help fight or repeal a single bad Democrat policy or get used to help elect a single Republican reformer or even make the case for voting Republican in Hawaii.  Where did her money go?  Well, instead of the party using experienced volunteers to file finance reports (thereby saving money), former state party treasurer Mary Smart's $1,000 donation -- plus a $500 pity donation from Democrat donor Francis "Scotty" Anderson (financial contributor to Democrat campaigns like Mufi Hannemann, Willie Espero, Stanley Chang, Clarence Nishihara, Donna Mercado Kim, Rosalyn Baker, and Clayton Hee) -- was TOTALLY WASTED to pay a completely optional monthly fee of $1,500 to a Massachusetts company called Red Curve Solutions .

That's right, $1,500 per month gets wasted to pay Red Curve's accountants to simply add up the paltry receipt of 15 donations this past month plus add up all the wasteful administrative overhead expenses each month so that this information can be sent to the Federal Elections Commission each monthBasically, this is TWO OR THREE TOTAL HOURS of work which a trained volunteer could perform for FREE.  But Shirlene Ostrov and her treasurer decided to do exactly what Fritz Rohlfing and his treasurer Mary Smart did during their tenureConsciously paying out $1,500 each and every month in precious donor funds to simply add up paltry donations, like the mere $8,000 received in July 2017.  That's nearly 20% of donor funds wasted off the top going to a mainland consultant with a pocket calculator, while what little is left over gets wasted on the party headquarters $3,000 maintenance fee, $1,500 mortgage, $830 for a copy machine, plus other costly HQ utilities and expenses like hiring a party member's son to clean HQ for $235 -- not to mention refund checks to donors who changed their minds about helping HRP (a growing trend in the past few months).
 
Any organization worth its salt understands
WHY donors give money (or refuse to give money) to its cause.  But, today, the Hawaii GOP has a MASSIVE problem because virtually nobody donates to keep this party going.  Always coming up short, a mere handful of people get 'shamed' and 'guilted' into writing checks to the state party.  And what they donate isn't even enough to cover the average $15,000 monthly nut just to keep the lights on at a party which doesn't even try to fight Democrats at all.  
Hawaii has a make-believe GOP and everybody knows it!!!   It's so bad that the closet Democrats at the Oahu League of RINO Women (OLRW) are privately raising funds ( to the chagrin of Hellreich and Saiki ) so the OLRW can contribute thousands of dollars in donor funds to pro-tax, pro-wasteful spending faux Republicans like that mega-disappointment and fellow closet Democrat Charles Djou, who wants to build heavy rail for tens of billions of dollars all the way to UH Manoa !!


Even if the party headquarters mortgage were miraculously paid off in the years ahead, the monthly savings would only be $1,500 per monthThe monthly outlay just for costly and wasteful administrative overhead would still approach $10,000 per month.  So the problem of running deeply 'in the red' from running a huge deficit each month won't disappear if the mortgage obligation disappears.  The mortgage is actually one of the smaller costs associated with maintaining the facade of the Miriam Hellreich-Oahu League luxury headquarters suite.
 
BIG QUESTION:   Since donors are NOT beating a path to the Hawaii GOP, let's understand why anyone would give money to a downward-spiraling state party which says nothing, believes nothing and does nothing except leave Democrats alone.  Seriously, WHY would anyone even bother to donate when they know their money isn't REALLY helping the Republican cause?  Pity?  Pride?  Party control?!?
 
HIRA was unable to get this small handful of five outside donors to comment on the record.  But in the case of 'insider' party leaders like Mary Smart, who keeps bailing out the albatross headquarters each month, it seems that she'll write a check because her pride is at stake; having endorsed the Ostrov/Blackburn team several months ago and having made a fiery speech against the alleged money mismanagement of Fritz Rohlfing and Jack James.
 
With that said, despite the party still being politically silent and still being politically silent/neutral -- and considering that Mary Smart is someone with inside knowledge that her money will be flushed down the toilet on costly overhead rather than (for example) TV ads, canvassing, mailers, or phone banking to identify voters -- it really makes you wonder HOW anything else but excessive pridefulness or some other bizarre personal motivator would make someone like Mary Smart or anyone else give a dime to Ostrov or Blackburn or Hellreich or Saiki???
 
The Hawaii GOP is not flush with donations from an excited Republican electorate in the islands because the party officially stands for nothing and then does nothing about it.  Just ask any Democrat how worried he or she is about what Hellreich, Saiki, Ostrov and Blackburn are up to.  Despite all the issues and statistics which could potentially state and local Democrats look awful to voters, the majority party loses even less sleep now with Team Ostrov and thin-skinned Mark Blackburn on the job than they did under Team Rohlfing and Jack James.


 
Sadly, the more things seem to change,
the more they stay exactly the same at the Hawaii GOP.

Save your money and donate to candidates instead of the useless RINO-hijacked state party.  You'll get more bang for the buck.
 
Mahalo,






ERIC RYAN
Member, Hawaii Republican Party (HRP)
President, Hawaii Republican Assembly (HIRA)
Chairman, HIRA Action SuperPAC




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