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Governor signs budget cutting about $100M, citing lowered revenue projections

Gov. Josh Green speaks to media at a press conference following his second State of the State address on Jan. 22, 2024.
Office of Gov. Josh Green
Gov. Josh Green speaks to media at a press conference following his second State of the State address on Jan. 22, 2024.

Gov. Josh Green signed the state’s $40 billion two-year budget into law on Monday. But he reduced it by about $110 million.

Green notified lawmakers in June that these cuts were likely as the state's revenue projections dropped since the legislative session came to a close.

He also cited concerns about impacts to federal funding coming to Hawaiʻi.

The Department of Education saw the highest cut of about $90 million over the next two years for school support.

That leaves about $30 million a year left for those projects. In a written statement, DOE said that although they already had a list of projects they would have used the full funding on, they will now re-prioritize to match the new funding levels.

The Department of Health's Adult Mental Health Inpatient program also saw a reduction of about $10 million.

Those funds were largely to pay for overtime at the state hospital. In a written statement, DOH says the lost funding will not impact patient safety or care.

“The hospital prioritizes staff safety and patient care, and we will ensure that a funding reduction does not impact this,” a department spokesperson wrote in an email.

“Because patient census is the primary driver for operational expenditures, we will continue to work to care for patients in the most appropriate setting and reduce hospital census.”

Overall, the cuts make up less than half a percentage of the state's overall budget.

In a written statement, the governor's office wrote that the cuts were decided by the department's capacity and feasibility to fulfill projects.

“With federal funding cuts looming, our state cannot afford to work in silos,” Green wrote.

“This budget reflects the collaboration between our legislators and our departments to prioritize critical funding efforts for the betterment of our people and for the health and stability of our state's budget.”

Ashley Mizuo is the government reporter for Hawaiʻi Public Radio. Contact her at amizuo@hawaiipublicradio.org.
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