To meet state needs after the fire-ravaged Maui disaster, Gov. Josh Green rerouted a staggering $172 million in emergency state funds from various state programs to start paying for the fire.
It was an unusual but necessary move.
Needed and urgent as the action may have been, it is now sending political signals of possible troubles in the state Legislature.
The strongest indication comes in the form of a state House committee report just issued by the House Finance Committee chairman, Rep. Kyle Yamashita. In the report adopted by the House, the Maui Democrat cautions Green.
“In managing the crisis brought on by the wildfires, there is still a lack of a clear, comprehensive plan from the administration to address the myriad of issues that have come to light over the past eight months,” the report said.
Much of the bill will be paid by the federal government, but the rest is up to the state to pay — and that means local tax dollars are on the line.
“In total, more than 10% of the general fund budget may be needed to respond to this disaster. Therefore, this budget appropriates $1,051,100,000,” said the committee report.
Of course, the views from the legislative arena are going to be different than if you are looking at the Maui fire damage bills piling up on the governor’s desk.
And the bills are adding up. Yamashita’s committee notes a “victims’ relief fund,” plus housing costs that the Federal Emergency Management Agency did not pay, costs immediately paid by various state agencies and even repaying aid paid to Hawaii from other states.
“The costs to ensure the safety and recovery of our communities will be enormous. At the same time, we need to make sure that essential services are maintained,” the committee report pledged.
The House sees trouble ahead, but also sees money in the budget to keep Hawaii functioning. The state Senate does not share that rosy picture. Financial leaders there see a much darker view.
According to a recent Star-Advertiser article by education reporter Esme M. Infante, the state school board was told by education officials that the Senate has directed all departments to prepare plans for budget cuts ranging from 10% to 15%.
According to the article, a memo from state Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, told all state departments to draw up lists of reductions for possible budget cuts.
Dela Cruz also described how emergency appropriations to the state major disaster fund in the wake of the Maui inferno are reducing state budget carryover to “critical levels,” the news report said.
Such a warning is good, tight budgeting — but also a warning. Maui’s disastrous fire is starting to show its long-term impacts, including changing the state’s budget outlook. Hawaii will not have the same potential for growth and sustainability that it enjoyed before the fire. The state’s options have decreased and state leaders will have to do more to get the same results. It is a new day, but not easier.
Richard Borreca writes on politics on Sundays. Reach him at 808onpolitics@gmail.com.