WATCH: Hayashi talks uncertain fiscal landscape with state Board of Education

There’s an unknown variable in the state budget equation for fiscal year 2026-27 causing difficulty for Hawai‘i education officials to find a solution.

“The fiscal landscape is very uncertain right now with the changes at the federal level,” said State Superintendent of Schools Keith Hayashi during his report to Hawai‘i Board of Education members as part of their Jan. 8 meeting. “So, we’re heading into the 2026 [state legislative] session with a lot of unknowns.”

Video Courtesy: Hawai‘i Department of Education

Hayashi refreshed the board about what the Hawai‘i Department of Education is seeking in its fiscal 2026-27 supplemental budget:

• $3.69 million to keep students globally competitive and reaffirm the department’s commitment to local education; includes funding for 16 permanent positions for math instructional coaches.
• $3.56 million for school food, which would cover 26 positions and $1.64 million for regional kitchens.
• $6.77 million for critical infrastructure needs such as essential operational, physical and technological infrastructure needs, including $1 million for repair and maintenance at neighbor island schools.
• $11.82 million for health, safety and court mandates, covering costs related to items such as wildfire prevention and refuse disposal.
• Net zero for realignment because of the department’s efforts to redeploy and repurpose program funding and positions to other school-based and related needs such as teacher-led projects.
• To be determined any federal funding, including a potential loss of assistance.

The total supplemental budget request approved by the state school board last fall is $25.8 million.

Unfortunately, Hayashi’s office was notified in November — after submitting the supplemental budget request — that Hawai‘i Gov. Josh Green would be unable to accommodate the majority of those board-approved requests.

While requests of $880,917 to base funding and $760,000 in non-recurring funds — a total of nearly $1.641 million — for regional kitchen operations were approved, adjustments to Green’s executive supplemental operating budget reduced the state Education Department’s funding by $30 million for school repair and maintenance.

“The net effect is that our general fund base budget was reduced overall by $28.4 million,” Hayashi told the board.

A total of $28,359,083 to be exact.

The state budget is one of the most critical pieces of legislation each year, Hayashi said, adding that there are many worthy needs competing for state funds.

That only adds to the uncertainty. However, there is room for some optimism.

The superintendent told the board the most recent projections from the state Council on Revenues, within the Hawai’i Department of Taxation, show that Hawai‘i’s tourism and construction industries are performing stronger than expected.

Hayashi and his staff look forward to advocating for the state’s student-focused needs during the 2026 legislative session.

His office already had briefings scheduled with Hawai‘i House Finance and Education committees, as well as Hawai‘i Senate Education and Ways and Means committees to discuss the department’s supplemental budget request.

Hayashi and his staff planned to use those briefings to “highlight the critical work happening in our schools and system to support student success.”