Hawai‘i County proposed budget bills move forward; first readings in May
A committee of the Hawai‘i County Council gave positive recommendations Friday for the proposed operating and capital improvement budgets for the 2026-27 fiscal year.
These budgets next will be discussed at a special meeting before the full council on May 21 in the Hilo chambers. The council will hear the first reading of Bills 135 (operating budget) and 136 (capital budget).
Hawai‘i County Mayor Kimo Alameda’s nearly $1 billion proposed Hawaiʻi County operating budget includes a 1.4% increase of $13.47 million to fund priorities such as public safety, infrastructure and recreation. His proposed capital budget is $358.7 million, of which $42 million is intended to be funded by federal grants, $23 million by state funding and $8.5 million with private money.
Friday’s positive recommendation comes after the committee spent four days, April 14-17, hearing budget presentations from the county departments, most of which were status quo.
The last of the budget presentations on Friday came from the Department of Public Works; Department of Research and Development; Office of Sustainability, Climate, Equity, and Resilience; and the Planning Department.
Public Works Director Wes Segawa presented a budget of approximately $31.2 million, which includes salary and wages for the department’s 480 positions, of which 71 are vacant.
The budget includes $400,000 to repair the Coconut Island Bridge after it partially collapsed in November 2025, and another $64,767 in support dollars to cover cost increases associated with the water spigot program that has experienced rising usage and maintenance costs. The program has 18 locations around the island that provide a continuous supply of safe drinking water.
Segawa said the Department of Public Works in 2025 processed and issued 50 percent of residential building permit applications within 60 days.
“We completed 66 percent of building inspection requests within two days after notification,” Segawa said. “We completed $26.5 million in federally funded highway construction projects. We resurfaced 33.94 road miles island-wide, completed 99 percent of incoming vehicle repair orders, and completed 86 percent of construction repair orders in-house.”
Going into the next fiscal year, Segawa said his department will be advocating for efficient delivery and completion of capital improvement projects for both the county’s building and engineering divisions.
Benson Medina, the Director of Research and Development, said his department plays a critical role in advancing Hawaiʻi County’s economic future through strategic initiatives in agriculture, tourism, workforce development, energy and business development.
The department’s proposed budget totals approximately $5 million. The department is currently completing a five-year agriculture foods plan that charts the direction of agricultural foods for Hawai‘i County. The department also is putting together the first Moku o Keawe craft fair in Kona this coming November to highlight locally made and grown products.
The council can’t move forward with the budget until the finance director provides them with what the net taxable real property will be for the upcoming fiscal year. Also, the council is responsible for setting the new third tax tier for second homes that are valued at more than $4 million.
The council has until June 20 to adopt the tax rates.
The council has until June 30 to adopt the operating and capital improvement budgets.
Read more about previous budget stories below:
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