Gov. Josh Green signed off on the state’s biennial budget Friday, along with a bill offering more tax benefits for Hawaii’s struggling families.

With roughly half a billion dollars going toward housing, Green said the intent of the legislation was to offer help for Hawaii’s working families, particularly those on the brink.

The signing of House Bill 300 — the final state budget — into law appropriates $10.7 billion for general funds in fiscal year 2024, followed by $9.8 billion in fiscal year 2025.

An additional $37.2 billion is set aside for the operating budget of the executive branch departments and agencies, and $4.2 billion for capital improvement projects over the two fiscal years.

“This is the beginning of a totally different approach to caring for our people,” said Green, thanking legislators for their work. “I’m very proud of this budget, and I acknowledge all the people who put it together.”

Green on Thursday provided official notice to lawmakers of his final line-item reductions and vetoes, citing the legal requirement to balance the budget due to lowered projections from the Council on Revenues.

Eleven bills passed during the 2023 legislative session are on Green’s veto list, including measures that would have set additional penalties for violations of the State Water Code, an art-in-private-places pilot program, and changes to the Hawaii Technology Development Corp.’s board of directors.

In June, Green also told legislators he planned to remove $72 million slated for the proposed First Responder Technology Campus in Mililani.

The governor said the administration had to “right-fit the budget” to align with its top priorities of housing, homelessness, health care services, education and the environment.

An estimated $500 million has been set aside for the development of more affordable housing and infrastructure, rent subsidies and teacher housing, among other initiatives.

On the health care front, the budget funds increases reimbursement rates for Medicaid recipients and a state loan repayment program that aims to incentivize physicians, nurses and other health care workers to practice in Hawaii.

It also gives Hawaii island hospitals a boost, including $50 million to Hilo Medical Center for its long-awaited expansion and $18.5 million to Kona Community Hospital to make urgently needed infrastructure repairs and expand its pharmacy.

Investing in neighbor isle hospitals means fewer patients will have to be transferred to Oahu for care, Green said, noting that roughly half of transfers come from Hawaii island.

The budget also allots more than $100 million to initiatives addressing climate change, energy and the environment, including $50 million for a loan program helping so-called ALICE (asset-limited, income-­constrained, employed) households shift to solar energy, $25 million to restore and maintain state parks, and nearly $15 million for ecosystem restoration.

Another $38.8 million is set aside for the Preschool Open Doors Program to help eligible families pay for preschool.

“With the signing of HB300, the state budget bill, we can expect that the resources provided within it, coupled with the shared commitment of the legislature and the Governor, will allow for considerable progress to be made in addressing Hawaii’s greatest challenges,” said state Sen. Donavan Dela Cruz (D, Mililani-Wahiawa-Whitmore Village), chair of the Senate Committee on Ways and Means, in a statement. “Millions of dollars have been put forth to tackle homelessness, the housing crisis, mental health, and workforce shortages, to name a few.”

Senate President Ronald Kouchi (D, Kauai-Niihau) issued a statement Friday saying the Senate Majority Caucus does not plan to override any of the governor’s vetoes.

Green also signed House Bill 954 into law as Act 163, which is geared toward helping ALICE households in Hawaii.

Act 163 doubles the state’s earned income tax credit for eligible families for five years, doubles the amount of the food excise tax credit and expands eligibility for the state’s most economically vulnerable residents.

Additionally, working families who struggle to pay for child or dependent care will receive a refundable credit of up to $3,000 a year.

In all, it offers $104 million in direct income support, he said, helping struggling families make ends meet.

“The people of Hawaii honored me with this position in the hope that my administration would make their lives better,” said Green in a statement. “It is a top priority of mine, and it is thanks to the collaboration between my Administration and legislative leaders that our families will receive this relief.”

House Speaker Scott Saiki (D, Ala Moana-Kakaako-Downtown) said the theme for the 2023 Legislature was cooperation, which was adopted from one of “Sesame Street’s” “word of the day” episodes.

“The budget and tax bills truly represent cooperation between the Administration, 76 legislators, and the general public,” he said in a statement. “They will deliver direct relief to over 200,000 families, our statewide parks and trails, our climate, and unsheltered individuals in need of mental health assistance.”

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SIGNED INTO LAW

>> HB 954, Relating to Taxation (Act 163): Increases the household/dependent care services tax credit for five years. Increases refundable earned income tax credit for five years. Increases income thresholds and credit amounts of the refundable food/excise tax credit for five years.

>> HB 300, Relating to the State Budget (Act 164): Appropriates funds for the operating and capital improvement budget of the executive branch for fiscal years 2023-2024 and 2024-2025.