The realities of governing never quite match the expectations of a new chief executive, which is what drives the request for a supplemental state budget 12 months later. Rarely has the reality left a gap as unexpected as the devastating Maui fire, however, which means Gov. Josh Green is beginning Year 2 with a spending plan involving more borrowing than he might have wanted.
Based on the request submitted to lawmakers, the assessment is rational. Success will depend on how competently the plan is executed. A solid analysis of where protocols and the structure of government went wrong is essential, at least as much as adding more money to the budget.
All of that should be laid out soon after the 2024 Legislature convenes Jan. 17. Green on Dec. 18 released his Budget in Brief for the 2025 fiscal year. The document outlines how he proposes to adjust, now that the wildfires of August compel the state to redirect resources to unanticipated needs of Lahaina and Upcountry Maui.
Those recovery efforts are now the No. 1 concern, according to the governor’s request. But there are more, and Green is right that the state can ill afford to sideline affordable housing priorities, homelessness outreach and health-care investments, including capital improvements project (CIP) spending.
If anything, the governor asserts, lower-income earners as well as the gap group are struggling even more to access mortgage loans, given the past year of rising interest rates.
So in an attempt to keep the agenda on track, Green has imposed a 5% budget cut across the administration’s departments, on top of another 5% trim to the discretionary funds.
And, to free up more cash from the state general fund for new expenses, the budget also would rely on general obligation bond financing for more of the CIP projects than originally planned. This will mean those projects will cost more in interest payments over the long term.
Among the allocations the governor now wants:
>> Green proposes adding 20 full-time positions as well as $653,082 in general funds for brush-fire work by the Hawaii Emergency Management Agency (HI-EMA). Also included is about $28.4 million for tasks related to wildfire mitigation and response to other agencies, such as the Public Utilities Commission, the Department of Hawaiian Home Lands and the Department of Land and Natural Resources.
A clear strategy for spending these funds — how these jobs will be defined, and how the appropriations will improve the state’s preparedness for fire emergencies — will need to be explained to the public in the coming legislative hearings. HI-EMA, for example, has been in the hot seat before for its faulty emergency responses, so will need to assure that its protocols have improved, beyond simply adding staffers.
>> The CIP budget would convert, from cash to bond financing, $55 million for University of Hawaii projects, $50 million for the state’s Dwelling Unit Revolving Fund, $180 million for the Rental Housing Revolving Fund and $100 million appropriated for public schools projects, including $45 million for faculty housing support.
It is particularly frustrating that progress in many long-awaited school improvements has lagged: Costs will rise, meaning that finishing them may be postponed further.
>> Under “Investing in Hawaii’s Future,” Green underscored the need to continue the pursuit of solutions such as the “kauhale” villages for the homeless, and requests for funds supporting mental health services and expanded Hawaii State Hospital capacity.
It is fortunate that Hawaii has maintained a strong credit rating that keeps the costs of increased borrowing relatively manageable. But that is not guaranteed, unless the administration and lawmakers have a well-considered plan for getting the most for the taxpayers’ money.
