State lawmakers are blocking off three dates in the coming months for a special legislative session to address federal funding cuts.
The Legislature has about three weeks left of its regular session. But the magnitude of federal cuts and what it means for the state’s budget is still unknown.
House Majority Leader Chris Todd said that’s why the special session dates are in August, September and November — when more information may be available to lawmakers.
"We're going to be watching very carefully for any area where we currently receive a large amount of federal funding. So things like the Department of Human Services with SNAP benefits, Medicare, Medicaid, the Department of Education, and the university system, Department of Health,” Todd said.
"It is really extensive within certain departments, but at this stage, we're so early in the federal budgeting process that we really don't have a read on what the need will be. And then the question is going to be: Are these needs that we have the capacity to address completely? Or are we going to feel the need to prioritize because the scale of these cuts is so substantial that we can't absorb it?”
The special session is separate from a possible reconvening of the Legislature to override bill vetos from Gov. Josh Green, which must happen by July 9.
The budget overhaul being considered by Congress threatens about 75% of the state budget’s $4.6 billion in federal funds.
Some advocacy groups have started to call on the Legislature to reconsider last year’s historic income tax cut that will cost the state over $7 billion over the next seven years.
"Here at the local level we're facing a massive challenge because of this tax cut that we have that we have put the state on this trajectory towards,” said Will White, the executive director of Hawaiʻi Appleseed Center for Economic Law and Justice, at a forum about federal cuts on Wednesday.
“I think it's going to be really important for all of us to really think creatively about how we can somehow fill those gaps, right, and look at our tax code, look at last year's tax cut — it may have to be adjusted, in fact, I'm pretty sure it's going to have to be because it I don't see how it's sustainable moving forward.”
Todd explained that if the federal cuts are significant, the Legislature will have to be prepared to talk about all revenue options.
“What I try to tell people when it comes to that specific piece of legislation is the state passes tax code changes every single year,” he said. “It's constantly fluid and up for discussion. And I don't think a special session would be much different in that way.“
A special legislative session can be called by the governor or by a two-thirds vote of the chambers seeking to reconvene. Special sessions can last up to 30 days.
The dates that have been blocked off are Aug. 25, Sep. 29, and Nov. 17.
The Legislature last convened a special session in 2017 to address rail project funding.
