Gov. Josh Green plans to cut over $1B from Hawaii budget

Gov. Josh Green told state legislators today that he plans to eliminate or reduce over $1 billion in spending on 22 projects from the state budget because of projected reductions in state revenue.

The cuts — $554.7 million in fiscal year 2024 and $533 million in fiscal year 2025 — include $72 million for a proposed, controversial first responder campus.

His reduced state budget follows the latest economic projections in May that showed Hawaii taking in a net loss of 1% in revenue. The governor is required by the state Constitution to produce a balanced budget.

Green said that the projects that he wants to reduce spending on would be unlikely to spend all of the money budgeted for the 2024 fiscal year, which begins July 1.

They include a reduction of $120 million from the original plan to provide $170 million for construction of teacher housing; an $88.8 million cut to the $93.8 million budgeted for water/irrigation infrustructure and irrigation system management; elimination of $25 million of $50 million proposed for renovations and improvements to state parks; and removing $61 million of out a proposed $86 million for design and construction of transit oriented development in the Iwilei-Kapalama are.

Other funding was completely eliminated for: “infrastructure improvements for regional economic development” ($50 million); Kakaako street upgrades ($18.5 million); and $60 million for the state Department of Land and Natural Resources’ Division of Boating and Ocean Recreation.

Green emphasized that spending remains intact to address key priorities including homelessness, housing and healthcare.

The Legislature now has 10 days to consider whether to override any or all of Green’s 22 so-called line item budget vetoes.