Maui Mayor Richard Bissen has appointed Maria Zielinski as the next Department of the Treasury Department director, a position previously held by Scott Teruya until February 2, when he was placed on paid leave without explanation. .
The appointment requires county council approval and will be taken up at Friday's meeting.
Mr. Zielinski, 71, was selected as acting finance director more than a month ago to fill the void left by Mr. Teruya's resignation at a critical time when Mayor Richard Bissen's budget was being finalized. This position is a step up from her previous role as county budget director.
The county has repeatedly refused to reveal why Teruya, whose salary this year was about $150,000, was placed on paid leave, saying only that it was for personnel reasons.
The Treasury Department has been the subject of significant audits in recent years, including one completed in December over the collection of Maui's transient lodging tax. According to the report, the department has failed to collect approximately $17 million in TAT, and another $9.3 million in TAT is past due as of June 2022.
“Many of these shortcomings were the result of the short program implementation period and understaffing,” Teruya said in an audit conducted by the county auditor's office.
Starting in November 2021, all short-term rental owners on Maui will be required to report and pay a 3% tax on their gross rental income to the county.
According to the audit, the department never established a system to successfully manage the new tax over the long term, and this clearly stems from the mistaken belief that the tax is voluntary.
After several months, the deputy treasurer abandoned efforts to compile an accurate list of people owed taxes and issue collection letters, the auditor's report said.
“There is no excuse for a county government to impose taxes without fully understanding how much is owed, who has paid, and who has not paid,” the audit said.
Zielinski was asked about the audit at the county council's budget committee meeting on March 5. She said the department is working to raise specifically needed funds for the Aug. 8 fire recovery costs and in counties dealing with the affordable housing crisis.
He said Monday that treasurers are working with internal revenue staff, the county auditor, the county's independent accountant, the county's current software vendor and the state Department of Taxation to adjust existing backlogs and create a better system. It said it was responding to the audit recommendations. Future process.
“This is a top priority for the department, but it will take some time to resolve,” Zielinski said.
Zielinski himself had his share of controversy.
The Honolulu Star-Advertiser reported that in 2017, she was hired by the state tax commissioner after allegations that the agency interfered with the work of a consulting firm that was supposed to provide independent oversight of a $60 million tax modernization project. suddenly resigned.
In 2017, she told Pacific Business News that it's common to have candid conversations with independent auditors and consultants and suggest modifications.
And on Monday, she said the tax modernization report was not the reason for her resignation.
“I was asked to agree to a personnel matter that I could not support in good conscience,” she said.
Four months after she resigned as state tax commissioner, the Maui County Council voted 8-1 to appoint her director of the Department of Congressional Services. The bureau provides investigative, administrative, and logistical support to members of Congress and committees.
At the April 2018 council meeting to approve her appointment, councilors praised Zielinski. According to Maui Time, no one asked about her resignation.
She served in that role until January 2023, after which Bissen appointed her head of the new administration's budget directorate. Leslie Milner currently serves as Acting Budget Director.
Zielinski said his biggest priorities as finance director will be to address numerous vacancies in various departments and invest in staff training and mentoring to help them operate more effectively while maximizing revenue collection. Stated.
She believes the biggest challenge is determining the most financially sound way to fund critical capital projects for fire recovery.
Zielinski previously served as deputy state auditor and chief financial officer for several organizations, including the California School Employees Association and Haleakala Ranch.
Civil Beat's coverage of Maui County is supported in part by a grant from the Nuestro Futuro Foundation.
