Hawai‘i County Council passes nearly $1 billion budget for FY 2025-26

During a special meeting on Thursday, the Hawai‘i County Council passed the county’s 2025-26 budget of $953 million, which is a 3.5% increase over last year.

The new budget, which will go into effect on July 1, was passed unanimously on the second and final reading, with Council Member Ashley Kierkiewicz absent.

Hawai‘i County Mayor Kimo Alameda said the unanimous passing of the budget shows unity between the County Council and his administration, adding the council members understand the county’s needs and the administration understands theirs.

“The council members, they are responsible for advocating for their districts, and my job is advocating for every district,” Alameda said.

During the special meeting, there was a last-minute amendment presented by Council Member Jennifer Kagiwada to take $2 million from the fund balance and create a line item within the Research and Development Department to support food security programs. Several people testified in support of this amendment, including the Hawai‘i Island Food Basket.

The overall sentiment was the $2 million could support multiple nonprofits and the continued partnership with farmers to provide food to the community.

Kagiwada’s concerns stem from reports that nonprofits are losing federal funding to support their programs. During the first special meeting on the budget on May 23, the councilwoman expressed concern over the potential loss of Supplemental Nutrition Assistance Program benefits for families as the Federal government discusses tax cuts that would impact that food assistance.

“Much of this stuff is coming fast and furious and I think the mayor did what he could with the information he had, but since he put his budget together, we’ve got more information about cuts, more information about things that we can do to improve situations for our residents here on our island,” Kagiwada said Thursday. “That’s why I’m bringing this later than I might have, but I really wanted to be responsive to what I’m hearing.”

After the meeting, Alameda said there has been a limited impact on loss of federal funding.

“Most of the budget is from the property tax base, and in that sense, we’re sustainable,” the mayor said. “Funds that come from the feds, they hit housing and transportation (departments) and some to the Office of Aging.”

Alameda said the county will work with the state before they start adjusting the budget.

“We don’t want to start paying for things that the feds or state will pay for, because we’ll end up not having no money for beach parks, gyms and roads,” he said.

Diane Nakagawa, director of the Finance Department, told the council that the county strategically put money back into the fund balance with the intent to not be reliant on it and save those funds for a future need.

Looking ahead, Nakagawa said, the county wants to make sure the Rainy Day fund provides for those times of need. Also, the county is facing significant historical obligation bonds in the billions of dollars, which is monumental for the county to fund critical projects, including the Hilo Wastewater Treatment Plant.

“To keep that reserve in a place that is financially responsible and comfortable for the county,” Nakagawa said.

The amendment failed to pass with a 5-3 vote with Council Members Galimba, Kimball and Kagiwada supporting the measure. Kierkiewicz was absent.

“I don’t think it’s fiscally responsible for the county at the 11th hour to be adding in $2 million out of the fund balance without a set plan,” said Council Chair Holeka Inaba. “The fact that, Deputy Director, you’ve only known about this for a week or so, or a couple of weeks, is concerning to me.”

Inaba added that there have been other amendments in smaller amounts, but to “scoop $2 million out of the fund balance with no exact plan, I think is irresponsible.”

Click here to view the budget.

A few of the highlights in the budget include the following:

• Fire Department: Approximately $334,000 increase for a facility and fleet manager, three clerk positions to support administrative responsibilities and the conversion of three temporary part-time water safety officers to full-time, permanent positions.
• Police Department: Approximately $300,000 increase for three more police officers in the Puna area to enhance public safety efforts.
• Department of Public Works: $1 million in repair and maintenance funding was added to further address aging facilities and deferred maintenance.
• Department of Parks and Recreation: Approximate $300,000 increase for additional maintenance staff and necessary equipment.
• Finance Department: Approximately $200,000 increase for three positions in the Real Property Tax Division to efficiently address collections and administrative processing.
• Debt Service Fund: Approximately $7.7 million decrease due to adjustments in terms and project schedules.
• Provision for Compensation Adjustment: $1 million increase to address recruitment and retention efforts.
• Claims and Judgements: $1 million increase to address rising legal expenses and potential liabilities.