The state's $20.3 billion budget has been finalized. The measure passed out of its last committee late Thursday night.
At the start of the legislative session, lawmakers faced a significant budget hole over the next six years, largely due to lost federal funding.
That brought cuts to most departments, mainly through eliminating vacant positions. The reductions were identified by the departments and are not expected to impact operations.
The state Department of Budget and Finance saw the largest funding cut at $33 million. But overall, the cuts to departments were significantly lower than the Senate’s original budget proposal.
For example, the state Department of Health previously would have seen a $25 million cut, but in the final budget draft, it’s been lowered to $4.5 million. Significant cuts to the Department of Health and the Department of Human Services were non-negotiable for House Finance Chair Chris Todd.
“This budget reflects the House's continued collaboration with the Administration and the Senate to take a balanced, responsible approach to preserving core government services and strengthening our safety net for Hawaiʻi's residents — especially those who rely on these services as a lifeline,” he said in a statement.
Senate Ways and Means Chair Donovan Dela Cruz wrote that it’s a budget that prioritizes working families.
“This budget uses cost-saving measures to help keep our promise to address the high cost of living and deliver meaningful tax reform to Hawaiʻi's citizens, especially our working- and middle-class families,” he said.
Dela Cruz also pointed to the nearly $130 million allocation of the state’s new Green Fee on hotels and cruise ships as an example of the state’s commitment to environmental stewardship, as the new revenue is intended for sustainable tourism, conservation efforts and climate resiliency.
The allocations were a mix of what was originally proposed by the Green Fee Advisory Council, which vetted projects before the legislative session, and add-ons largely by the Senate. The projects range from millions for community stewardship for coral and ahupuaʻa restoration to wildfire risk reduction. Some of the newly added projects are seemingly outside of the Green Fee’s intended purpose, such as $800,000 for Waipahu High School ADA Compliance and $7 million for a food and product innovation network.
The measure also includes capital improvement projects, which are paid for using bonds. Some significant allocations include $58 million to improve Wahiawā Dam, $446 million for improvements and repairs to schools and $50 million for the West Hawaiʻi Medical Office building.
The budget will next go for a final vote before both the full House and Senate.
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