The House of Representatives passed the state’s $11.3 billion budget on Thursday.
Maui fire recovery accounts for a 10th of the state budget — about $1 billion.
Notably, $500 million has been set aside for displaced Maui residents living in hotels.
About $65 million has been set aside for Gov. Josh Green’s One ʻOhana settlement fund for families of those who died in the fire.
Although some of the $1 billion in allocated funds could be reimbursed by FEMA, House Finance Chair Kyle Yamashita said that could take years.
“Historically with other disasters, FEMA hasn't been very timely in reimbursing us,” Yamashita said.
“So the state may have to front the money and wait for the reimbursement in the out years. So that's where we have to be. This budget has to be able to withstand that shock and still, at the same time, make sure that government can still operate,” he said.
The allocations are all estimates and he warned that the costs could change.
House leadership said that this proposed budget does not include dramatic cuts to state departments, and even restored some funding to the University of Hawaiʻi and Department of Education capital improvement funds.
The state had an over $1 billion budget surplus that is acting as part of the state’s reserve funds. It was from that where they pulled money for both anticipated Maui recovery and hundreds of millions of dollars for pandemic hazard pay for government employees.
“We're still in the positive, but it's not where I'm comfortable with at this point in time,” Yamashita said.
Lawmakers are still awaiting a concrete plan from the governor to move displaced people out of hotels on Maui. Yamashita wanted more collaboration between the branches of government.
“I would have appreciated more consultation with the Legislature, and working forward on these types of things,” he said.
“I think that would have been the biggest change that I would have asked for.”
Also included in the budget are increases in revenue from a proposed 1% increase in Transient Accommodations Tax and the cost of setting up a legalized marijuana program. Both measures are making their way through the legislative process.
The budget will next be heard by the state Senate.
