Sunday

04-27-2025 Vol 1943

Hawaiʻi’s Biennium Budget Approved with Substantial Allocations for Maui

On April 23, 2025, the Hawai‘i State Senate and House of Representatives reached a significant milestone by approving a joint version of the state’s biennium budget bill, HB 300 CD1, which encompasses an allocation of nearly $40 billion for fiscal years 2026 and 2027.

The budget has now passed through a conference committee after both chambers presented differing versions, and it is set to undergo a final reading before it is delivered to the Governor for approval.

Among the notable allocations for Maui, the budget designates a total of $3.2 million for the Kamehameha III temporary school located in Lahaina, along with an $18 million allocation for the Maui Health System.

Additionally, the revised budgets for the state’s capital improvement projects include provisions for the Lahaina small boat harbor and allocate $35 million for the establishment of the third Hawaiʻi State Veterans Home on Maui, which is further supported by $58 million in federal funds.

In terms of affordable housing, a noteworthy sum of $240 million has been set aside for statewide financing programs, such as the Rental Housing Revolving Fund and the Dwelling Unit Revolving Fund.

The budget also allocates $2.4 million over the biennium to the Department of Law Enforcement to support its Fireworks Task Force.

Senator Donovan Dela Cruz, chair of the Senate Ways and Means Committee, stressed the importance of collaboration in formulating the spending plan.

House Finance Chair Kyle Yamashita, representing House District 12 of Upcountry Maui, described the budget plan as “responsible and forward-thinking.”

The details of HB 300 CD1 include a breakdown of appropriations from the General Fund, with FY2026 budgeted at $10.593 billion and FY2027 at $10.637 billion.

The total across all funding means for FY2026 is estimated at $19.940 billion, while FY2027 sits at $19.763 billion, reflecting a comprehensive financial strategy for the coming years.

In terms of specific allocations, the Department of Accounting & General Services is slated to receive substantial funding for various initiatives:

– $3.2 million is earmarked for the Kamehameha III temporary school, which is critical for educational services in the area.

– Other notable allocations include $7.35 million and one position for the streaming of State and Local Boards and Commission meetings, promoting transparency and accessibility.

– The budget also provides $5.53 million for Microsoft 365 G5 licenses, and $10 million dedicated to the Hawai‘i Information Portal CherryRoad Enterprise.

Furthermore, provisions for cybersecurity risk mitigation are highlighted with an allocation of $3.2 million.

The budget further addresses the needs of the business sector through the Department of Business, Economic Development & Tourism, proposing various initiatives including:

– $2.9 million for a Healthcare Workforce Development Program aimed at enhancing the healthcare workforce across the state.

– Additionally, $1.7 million is designated for the Made in Hawai‘i Workforce Development Program, which seeks to bolster local businesses.

The Department of Education is also set to receive significant funding in the budget, with key allocations such as:

– $150 million for deferred maintenance, highlighting the critical need for infrastructure improvements in educational facilities.

– The budget also allocates $41.98 million for summer programs and $20 million to improve skilled nursing services, ensuring a comprehensive approach to education and health.

Among the notable capital improvement projects (CIP), a total of $3.38 billion has been allocated for FY2026 and $2.33 billion for FY2027, focusing on essential infrastructure development.

Highlighted projects include $240 million for rental and dwelling unit revolving funds aimed at addressing affordable housing needs statewide, including $68 million for the Ka Lei Momi Development Project.

The state’s agricultural sector sees considerable attention as well, with $48 million allocated for agricultural land acquisition and $22 million for state irrigation and reservoir safety efforts.

In terms of health, the budget marks a significant investment with $115 million designated for statewide healthcare services, includes funding for critical community hospitals, including $40 million for repairs at the Hawaiʻi State Hospital.

Public safety initiatives receive just under $7 million for ADA compliance upgrades and $28 million for the establishment of a consolidated health and mental health care unit at Halawa.

The transportation sector has also been prioritized, with an impressive $1.78 billion allocated for airports and a further $1.5 billion dedicated to the state highway system, demonstrating a robust commitment to infrastructure development.

Overall, the budget lays out a forward-thinking financial strategy to address the immediate and long-term needs of the state’s education, healthcare, public safety, and infrastructure sectors, while also providing crucial support for Maui’s unique initiatives.

The successful passage of this biennium budget reflects a collaborative effort among lawmakers, aimed at fostering growth, innovation, and sustainability across Hawaiʻi.

As the bill progresses towards final approval, it marks a significant step towards securing vital resources for the state’s future development and resilience.

image source from:https://mauinow.com/2025/04/23/hawai%CA%BBis-biennium-budget-advances-conference-committees/

Benjamin Clarke