Honolulu's operating budget for next fiscal year is receiving pushback for its proposed funding cuts to the city’s Office of Economic Revitalization.
The city council's current version of the budget would cut over $1 million in funding for the office, resulting in nearly 20 cut positions.
Many testified against the proposed cuts, including Josh Wisch, the executive director of Holomua Collective. The organization that works to keep local working families in Hawaiʻi.
“Budgets are statements of priorities,” Wisch said. “OER is really the only agency whose core mission is to build a strong economy. I think it sends the wrong message, if you're saying we're going to go ahead and eliminate the one agency that's focused on economic revitalization.”
Other testifiers gave personal examples of how OER has helped them, with some saying their small business has gained success because of the office’s help, while others said the office has been vital in post-storm recovery.
Councilmembers said they see the value in OER’s work, but they noted the recent city auditor report showed the office was slow to set economic strategy countywide.
The report stated OER has not met five out of the eight responsibilities that were established for the office when it was created in 2020.
“OER has not fully met the intent or operational scope envisioned by the resolution, limiting its ability to provide comprehensive economic revitalization leadership for the city,” the report reads.
As a result, some councilmembers believe the office needs more leadership and a clearer framework before moving ahead.
“I hope that moving forward, that we can pivot and it can become the economic leader we need it to be,” Councilmember Andria Tupola said. “The concern is not whether these programs are beneficial — we know they are and we are so grateful for the programs. It is whether this is the highest and best use of a city office uniquely positioned to lead economic policy strategy.”
The next fiscal year starts on July 1. The budget bill will be heard by the full council next.
