Hawai‘i County Council passes first reading of FY 2025-2026 budget

The Hawai‘i County Council on Thursday passed first reading of the approximately $953 million Hawai‘i County budget for Fiscal Year 2025-26, which is a 3.5% increase over last year’s budget.

“That’s the smallest increase we’ve seen within the last five years,” County Managing Director Bill Brilhante told the County Council on Thursday during the special budget meeting. “I think that’s very conservative, and it’s fiscally responsible.”

Click here to review the proposed budget.

Draft 2 of the proposed budget passed first reading with eight ayes. Council Member Rebecca Villegas was absent. The second and final reading of the budget will be June 5.

Brilhante said 50% of the county’s proposed expenditures are related to salaries, wages and benefits.

In draft 2 of the budget, there is a $15.5 million increase from the first budget submittal to the council in March. According to a letter from Mayor Kimo Alameda to the council, the revised budget proposal prioritizes funding for the repair and maintenance of county facilities and infrastructure, strengthens public safety initiatives, and supports county department personnel and operations.

The document also indicates an approximate revenue increase of $12.7 million due to increases in projected property values. Intergovernmental revenue also shows an increase of approximately $7.3 million due to grants awarded after March.

Brilhante gave a presentation on the budget, telling council members the county leaders wanted to address aging infrastructure that had been “kicked down the road,” including funding projects like the Hilo Wastewater Treatment Plant.

“Our primary goal right now relates to repair and maintenance of existing facilities and, you know, infrastructure,” Brilhante said. “Our second goal is … public safety.”

The proposed budget calls for an increase in public safety positions islandwide.

In his letter to the council, Alameda broke down a few of the highlights in the proposed budget.

• Fire Department: Funding increased by approximately $334,000 to fund 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 Departmen: Approximately $300,000 was added to the budget to fund 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: Funding increased by approximately $300,000 for additional maintenance staff and necessary equipment.

• Finance Department: Funding of approximately $200,000 was added to fund three positions in the Real Property Tax Division to efficiently address collections and administrative processing.

• Debt Service Fund: Funding decreased by approximately $7.7 million due to adjustments in terms and project schedules.

• Provision for Compensation Adjustment: Funding increased by $1 million to address recruitment and retention efforts.

• Claims and Judgements: Funding increased by $1 million to address rising legal expenses and potential liabilities.

While county’s revenue is up 7% with the fund balance from this past fiscal year, Brilhante explained they only increased this year’s budget by 3.5% so the county can be less reliant on that balance.

“What we’re looking at as we proposed a status quo budget early in the year, it is the intention to stay within the revenues that we collect,” Brilhante said. “In doing so, we would like to be less reliant on that fund balance carryover.”

The county would like to only use that Rainy Day Fund for times of revenue shortfall or other uncertainty items that may come up.

Council Member Jennifer Kagiwada appreciated the sentiment, however, she raised concerns over the potential loss of SNAP benefits for families as the Federal government discusses tax cuts that would impact that food assistance.

Kagiwada said that with the county revenues up and not putting some of that aside for the potential loss of federal benefits concerns her.

“In addition, we have, you know, our major wastewater projects coming up that are going to put us in debt with bonds for the next foreseeable number of years,” Kagiwada said. “So I just don’t understand why we wouldn’t be looking at this increase of revenue.”

Brilhante said the potential loss of SNAP benefits hasn’t gone unnoticed. The county has been in discussions with Gov. Josh Green and the mayors earlier this week where they’ve discussed potential impacts from the proposed tax cuts.

At this point, Brilhante said everything is manageable. SNAP benefits were priority number one in those discussions.

“The state does have a plan in place, and the county is following suit,” Brilhante said. “I think one of the outcomes from that discussion was we really don’t want to scare people. We don’t want to bring fear to people’s lives.”

Council Member Ashley Kierkiewicz weighed in on Kagiwada’s concerns over the potential loss in food assistance.

“When I take a look at the budget and everything that you have presented, the allocations are based on what we are mandated to do in the charter,” Kierkiewicz said to Brilhante. “I think that the county is not meant to solve all problems and to be everyone’s savior.”

Kierkiewicz also said she doesn’t want to disregard the need for food support amid the “astronomical” cost of living in Hawai‘i.

“So we have to think creatively about how we help to be part of the solution,” she said. “We can convene conversations with food hubs, resilience hubs, local producers that exist here on our island, and think about reaching out to Hawai‘i Community Foundation, local philanthropy, many of our wealthy manufacturers that live here on island to see if they can co-op.

“I don’t know if the solution is always for us to be drawing down our fund balance, but I think we, as the county, can serve the role of convener and find ways to pull all of that support together.”

The council also took up four amendments to the budget, filed by Council Member James E. Hustace, who represents the South Kohala District, to appropriate funds to projects specifically for his district.

Several testifiers came out to support one of those amendments that appropriated $2.5 million for the design and construction of Waikōloa Artillery Road and Kamakoa Drive.

Concerns over emergency access in Waikōloa have plagued the community for years, with only one way in and out of the community, and only one other emergency route – Hulu Street – that is locked. The access issue was brought to light following the Mana Road Fire in 2021 when it took hours for thousands of residents to evacuate the community as flames came dangerously close to homes.

Under former Mayor Mitch Roth’s leadership, there was a groundbreaking on Kamakoa Drive a year ago, where Gov. Josh Green and Hawai‘i Department of Transportation Director Ed Sniffen met with community members and the land developer, Charles Sommers, to celebrate the future construction of the new emergency evacuation road.

Hustace said the event was a sign of commitment with one of the developers of the area to work with the state and county on the emergency egress road.

“To my knowledge, their work has been held up by SHPD (State Historic Preservation Division) because they didn’t request the correct permits,” Hustace said.

Aslan Chalker, a Waikōloa resident, was among the dozens of testifiers supporting the budget amendment. One year ago, she said the community was cautiously optimistic after the groundbreaking.

“We were promised the road would be done by, quote, ‘next year,'” she said. “And as we mark one year since that groundbreaking with nothing to show for it, I am begging you to not let another fire season pass without any action.”

Council Member Dennis “Fresh” Onishi couldn’t believe a groundbreaking for the road was held without the proper permits. He noted with the affordable housing the county is building in Waikōloa, “we’re adding to the density. We’re adding to the problem.”

The amendment was passed.

The council also passed Hustace’s following proposed amendments:

• To add the Public Works Department’s Paniolo Avenue Widening project in the amount of $5 million.

• To reappropriate the Parks and Recreation Department’s Kohala Swimming Pool Repairs project in the amount of $5 million.

• To reappropriate the Parks and Recreation Department’s Spencer Kalani Schutte District Park Improvements and Expansion project in the amount of $5 million.