HONOLULU —Hawai‘i House and Senate leaders resolved their differences over spending priorities on Tuesday evening, settling on a conference committee draft of the state budget bill that appropriates $19.2 billion for operations during the fiscal year beginning July 1.
The funding laid out in House Bill 1800 for general state operations includes $10.4 billion in state general fund revenue mixed with federal and other funding, and is subject to a vote by all House and Senate members scheduled for Friday. Approval of the bill is expected.
HB 1800 essentially tweaks a budget for the coming fiscal year that was approved by the Legislature in 2023, making adjustments that include supplemental funding for expenses that have arisen over the past year.
Chief among new expenses is the cost for Maui wildfire response and recovery work. In March, the House draft of the budget bill included $1 billion for such expenses. But the Senate preferred dealing with such expenses in separate bills, and its position prevailed. Such expenses are the subject of pending Senate Bills 3068 and 582.
“Fully determining the State’s exposure to wildfire- related expenses remains an extremely challenging task,” the conference committee on the budget bill said in a report.
A wildfire on Maui destroyed most of Lahaina on Aug. 8, 2023, killing 101 people and causing an estimated $5.6 billion in damage.
The committee report noted that the federal government often assists states in mitigating recovery costs, but that this is almost never immediate and may take several years.
“Communication, coordination, and cooperation among all branches of government will be needed in the coming days, months, and years to develop and implement solutions for survivors,” the report said. “Preserving, maintaining, and enhancing fundamental services are priorities of this budget.”
Examples of supplemental funding agreed to by the committee include $750,000 and three staff positions for a Red Hill water alliance initiative under the state Department of Land and Natural Resources, and multiple staffing and funding shifts at the state Department of Labor and Industrial Relations to reestablish a research and statistics office at the agency.
Much of the state budget goes to public education, and numerous funding additions were incorporated into HB 1800 by the conference committee. Some of these are:
• $6 million for small and remote schools.
• $2.5 million for workforce readiness.
• $1.7 million to cover inflation.
• $1.7 million for social-emotional surveys.
• $500,000 for professional development in computer science for teachers.
• $400,000 for trauma-informed care.
• $63,082 for Junior Reserve Officer Training Corps travel.
• $56,350 for math camp.
Additions for various agencies highlighted by Senate leadership included:
• $17 million for insurance and $2.5 million for software licenses at the Department of Accounting and General Services.
• $1 million and three staff positions for meat inspections by the Department of Agriculture.
• $25 million for a state rental housing fund under the Hawai‘i Housing Finance and Development Corp.
• $6 million for geothermal energy exploration under the Department of Business, Economic Development and Tourism.
• $2 million for a 2-year rural medical air transport pilot project under the Department of Health.
• $1 million for wildfire mapping and vulnerability assessments by the University of Hawai‘i.
Separate from the state’s operating budget, HB 1800 includes $4.5 billion for capital improvement projects, of which $1.5 billion is to be financed using general obligation bonds. Captal improvement projects include construction at airports, highways, harbors and other state facilities.
Sen. Donovan Dela Cruz, who led conference negotiations for the Senate, said in a statement that the compromise draft of the budget bill balances the ongoing needs of Maui while also preparing Hawai‘i for future disasters and working to diversify the local economy, among other things.
“As with any budget, difficult decisions must be made, but we are confident that the strategic forward-thinking collaboration between the Legislature and administration resulted in a budget that is proactive in developing a diversified economy and stabilizes core services and programs to address the needs of our most vulnerable residents,” said Dela Cruz (D, Mililani- Wahiawa-Whitmore Village).
Rep. Kyle Yamashita (D, Pukalani-Makawao- Ulupalakua) led negotiations for the House and said in a statement, “As we commenced this legislative session, our immediate focus remained to address the Maui wildfire recovery efforts, prioritizing safety and rehabilitation of our communities while ensuring core services for our state were not neglected.”
