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Editorial: Cost issues cloud Maui rebuild plan

Potential costs to the state for recovery from the Maui wildfires is drawing intense scrutiny from the state Senate, and for good reason: On Tuesday, officials told the Senate Ways and Means Committee, which exerts control over state spending and budget priorities, that the state may need as much as $800 million in unanticipated additional Maui recovery funds, including $360 million previously expected to be covered by federal sources; plus $400 million requested by Maui County for recovery help, including infrastructure repairs in Lahaina.

Exactly how much money the federal government will provide, and how much Hawaii will need to contribute, is uncomfortably unsettled. That puts the Legislature in a bind, as it must pass an updated budget by May for the state’s fiscal biennium, through June 30, 2025.

Gaining firm commitments for federal funding must be an immediate priority, and Gov. Josh Green flew to Washington Tuesday to meet with President Joe Biden and other federal officials to discuss Hawaii’s extraordinary needs.

For the sake of Hawaii’s economic stability, it’s imperative that federal officials also grasp the urgency of this situation, as about 4,700 survivors continue to be sheltered in West Maui hotels, more than six months after Lahaina burned. Federal officials must work quickly with the state to agree on planned spending and cost-sharing, and then pursue expeditious strategies to move people into secure, permanent homes.

In the “worst case” scenario, the state could need an additional $360 million, on top of $199 million already set aside by the governor’s budget, to pay for survivors’ shelter expenses. Most of this cost arises from Federal Emergency Management Agency (FEMA) determinations that 820 Maui fire evacuees now in hotels — at the shocking cost of about $1,000 per day, per household — are not eligible for FEMA support.

The state is challenging, as it should, the vast majority of FEMA eligibility determinations, and holds that only 29 survivors should be excluded; this must be resolved. Further, FEMA has refused to reimburse meal costs for survivors in hotels with no cooking facilities; that decision must be reversed.

The elephant in the room as this crisis continues is the thousands of Maui housing units that aren’t being made available for long-term housing, because owners are holding them for short-term vacation rentals. Gov. Josh Green has stepped back from considering a short-term rental moratorium, but that tack should come back on the table to ease this extraordinary emergency situation.

The state also is seeking to build homes, and has asked FEMA for support to build 1,000 units — but FEMA has committed so far to develop only 213. This cuts against the agency’s mission and fails to recognize the extreme need that exists.

Another issue that must be resolved is reimbursement to Hawaii for sheltering Compact of Free Association (COFA) migrants — and this involves addressing FEMA regulations that prohibit support for those Pacific Islanders left homeless by the Maui fire. Biden and federal officials must recognize that because federal law guarantees COFA migrants the right of free movement throughout the U.S., including legal residence in Hawaii, justice demands that the U.S. government aid those harmed by this disaster — the nation’s deadliest wildfire in over 100 years.

As for Maui County’s needs, the county reports that federal reimbursement for some costs can be expected — but not for years. Federal lobbying seems called for here, too, to maximize U.S. assistance and eliminate delays.

The Legislature must work closely with state and county officials to get a handle on fire-recovery costs. While additional spending may well be needed — including some tapping of the state’s “rainy day” fund — the end goal must be to determine the most responsible and cost-effective methods to meet survivors’ needs.

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