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Hawaii House passes $30.7B two-year budget, sends to Senate

DENNIS ODA / DODA@STARADVERTISER.COM

The Hawaii House of Representatives has passed the state’s $30.7 billion two-year spending plan, after debating which schools should get construction funding and how much money should go to Hawaiian Home Lands.

The Hawaii House of Representatives passed the state’s $30.7 billion two-year spending plan, after a heated debate about which schools should get construction funding and how much money should go to Hawaiian Home Lands.

Gov. David Ige proposed spending about $2 billion more over the biennium than the Legislature approved last year. The House on Wednesday kept the overall spending level about the same, but it reduced the governor’s operating budget request by about $47 million for 2017, approving the bill and sending it to the Senate.

Republican Rep. Gene Ward cast the lone no vote against the budget, saying the state should be giving more money to the Department of Hawaiian Home Lands, which awards 99-year land leases to Hawaiians for $1 a year as part of a federal program that began in 1920. There were more than 27,600 people on a waiting list for those land leases last year.

“I’m taking a stand for what I believe is the right thing to do, and no one has convinced me otherwise,” Ward said in an interview. “I really have a strong distaste for what they’re doing to the Hawaiian Home Lands, and the Hawaiians who have waited 96 years.”

The Department of Hawaiian Home Lands had requested $28 million, and a judge had ordered the Legislature in November to fulfill that request. But the court order was later revised.

Lawmakers also clashed over how the Finance Committee divvied up funding for school construction projects. Ige’s proposal to spend $35 million to build an additional classroom facility at overcrowded Campbell High School was reduced to $15 million, a decision Rep. Bob McDermott called a “gross misfire.” McDermott, who represents Ewa on Oahu, complained that the budget committee approved money for a new school on Maui, saying “it’s not needed, and the people of West Oahu will not stand for it.”

The budget passed by the House includes more than $300 million for school facilities statewide. The new Kihei High School being built in South Maui was awarded $37.5 million to continue construction that began in January, an amount far below what was requested for that school, House Finance Chairwoman Sylvia Luke said.

Both school construction projects will be able to proceed, Luke said. Overcrowding is not just limited to West Oahu, “it’s happening all over,” she added.

On affordable housing, the House substantially reduced the amount of bond money set aside for new housing development. Ige’s budget called for $75 million in general obligation bonds for the for the rental housing revolving fund, which gives low-interest loans to developers for construction of affordable rentals, but the House reduced that to $25 million. They also reduced Ige’s suggested $25 million for the dwelling unit revolving fund — a similar program aimed at developing affordable homes for purchase — to $12.5 million.

The budget also included nearly $4 million for previously unbudgeted vacation payout expenses for state employees.

“Departments were leaving positions vacant because of having to pay sick leave and vacation payouts,” Luke said. “No department should be forced to pass up hiring a qualified staffer just because there wasn’t enough money to pay for retiree benefits.”

13 responses to “Hawaii House passes $30.7B two-year budget, sends to Senate”

  1. FARKWARD says:

    “WIMPS”!

  2. serious says:

    Since Hawaii spends $90,000 a mile in bureaucracy costs vs the national average of $9,000–how much did they cut from costs???

  3. aomohoa says:

    No real information and a lot of money!

  4. Jonathan_Patrick says:

    So one ought to compare the budget of The State of Hawaii to those States with similar populations. Okay so $30.7 Billion over two years means $15.35 Billion over a year. There are 1,431,603 people here, a 2015 Wikipedia estimate, so $15.35 Billion divided into 1,431,603 is $10,722 per capita. Is the State generous? I don’t know. Seems the State spends a lot of money. Lots are wasted. What are going to do about it, Governor Ige? At this moment in time, I am not paying any taxes, so I am getting a good deal. How about those that pay more than their fair share? Are THEY getting a good deal?

  5. Ronin006 says:

    Not one word about how the state intends to reduce it multi-billion dollar debt.

  6. 808StateNeedsHelp says:

    No worries: IGE cancels State ERP project = $12 million loss, IGE cancels DOT FAST project = $13 Million loss. State needs to spend, no worries, just issue bonds and have taxpayers fund debt payments. AUWE..IGE one term governor!

  7. Keolu says:

    What is Sylvia Luke talking about? The state doesn’t pay out sick leave, only vacation credits, which they should change.

  8. kekelaward says:

    $30 billion for a state this small?

    We have to get rid of these tax and spend dems!

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