Mayor Rick Blangiardi has requested a bigger budget for the next fiscal year that will top over $5 billion. His administration submitted the executive operating and capital improvement project budgets to the Honolulu City Council last week.
"This four-year term, we shift from all the planning we've done into execution," Blangiardi said. "That's what this budget is reflective of, and that's to take nothing away from how much we've done so far. We've just raised the bar. And I think the public is going to see that. The public is going to feel that."
The proposed operating budget is $3.93 billion, an 8.4% increase from last year's $3.63 billion operating budget; $976.7 million — or about 25% — would go toward city employee benefits.
Honolulu's police, fire, emergency services, ocean services and public safety departments make up about 17% of the budget at $657.2 million.
The Blangiardi administration emphasized the $28 million set aside for homelessness initiatives, an increase of $14 million.
It also includes $10 million to cover any losses in federal funding for key programs and would be primarily used to cover personnel costs if needed.
"Keep in mind that we also put away, every year anywhere from $5 million to $10 million into our fiscal stability fund," said Andy Kawano, director of the city Department of Budget and Fiscal Services. "So if the repercussions of what's going on in Washington, you know, impact the economy, we have the capability to draw on that fund."
Kawano said there is currently $190 million in the fund.
The capital improvement project budget is $1.21 billion, a 15.8% increase from fiscal year 2025.
More than 45% of that — $533.7 million — will go toward refuse and sewer projects mandated by the 2010 Global Consent Decree. That includes work at the Honouliuli and Sand Island wastewater treatment plants. Highway and street improvements make up $207 million of the CIP budget, and affordable housing and homeless services have been allotted $143.8 million.
The Blangiardi administration also noted $100 million towards the acquisition and development of affordable housing with mixed uses.
The budget also sets aside $77 million to acquire land, and plan and design landfill improvements. It does not specify the proposed Wahiawā location, which has an estimated $200 million price tag.
The mayor says the status of the landfill is unclear because a bill moving through the legislature, House Bill 969, would bar any landfill from being over an aquifer. That means the budget line is fluid and may not be spent this upcoming fiscal year.
“I am hoping that that doesn't happen. I think the decision we made to put the landfill in Wahiawā, I stand by that," Blangiardi said.
The city expects the majority of revenue to come from an estimated $1.77 billion in real property tax revenue, $1.24 billion in estimated unreserved fund balances carryover from fiscal year 2025, and $108.2 million in Oʻahu Transient Accommodations Tax revenue.
“Our Fiscal Year 2026 budget is a bold and strategic investment in O‘ahu’s future—one that prioritizes housing, public safety, and critical infrastructure while maintaining our commitment to fiscal responsibility,” Blangiardi said in a statement.
- Honolulu FY 2026 Operating Budget: Bill form and report and executive summary
- Honolulu FY 2026 CIP Budget: Bill form and report and executive summary
