Ige Outlines Proposed Biennium Budget for 2015-2017

Governor Elect David Ige. Photo by Wendy Osher.

By Wendy Osher

Governor David Ige and Wes Machida, Director of Budget and Finance Designee, will outline the proposed budget for the 2015-2017 biennium during a press conference this afternoon.

The budget has already been submitted to the State Legislature for review and includes a $25.77 billion operating budget over two years.  The financing represents an increase of 4% in 2015-2016 and an 8.2% increase in 2016-2017 over current levels.

“One of the most important responsibilities that I have, as Governor of the State of Hawaiʻi, is to deliver a balanced budget to the legislature and to the people of our State. To that, I am fully committed,” said Ige in the budget overview portion of the document.

“We will not propose new programs when we cannot afford to pay for them – we will live within our means, just like Hawaiʻi’s
families. We will spend public funds wisely to avoid raising taxes,” he said.  “State government should be run like a business, striving to increase efficiency and reduce waste and costs.  Accountability and transparency will be the core principles upon which we provide services to our customers, the people of Hawaiʻi.”

Ige said that due to the short time between administrations and an impending deadline, the Executive Budget was primarily compiled by the previous administration.  “We consider this Executive Budget to be a starting point from which my administration can build,” he said.

The Operating Budget

“Limited general fund requests were included as part of the baseline budget, with the majority of the funds targeted for non-discretionary costs,” according to the budget document.

Significant general fund requests outlined in the document include:

• $18.9 million in FY 16 and $18.4 million in FY 17 for Behavioral Health Services for mentally ill Medicaid recipients ($34.9 million in FY 16 and $35.1 million in FY 17 in federal funds also recommended).
• $4.6 million in FY 16 and $58.8 million in FY 17 for debt service for capital improvement projects for Department of Education, University of Hawaiʻi and other State programs.
• $87.4 million in FY 16 and $216.3 million in FY 17 for health premium payments for DOE, UH and other State programs.
• $65.5 million in FY 16 and $99.8 million in FY 17 for retirement benefit payments for DOE, UH and other State programs.
• $18.8 million in FY 16 and $36.0 million in FY 17 for collective bargaining costs for the UH Professional Assembly ($1.5 million in FY 16 and $2.9 million in FY 17 in special funds, $0.5 million in FY 16 and $0.9 million in FY 17 in federal funds and other federal funds, and $0.1 million in FY 16 and $0.2 million in FY 17 in revolving funds also recommended).
• $9 million for FY 16 and FY 1 “? for increased utility costs for DOE.
• $9.6 million for FY 16 and FY 17 for administrative and operating expenses for the Department of Hawaiian Home Lands.

The Capital Improvements Program Budget

The Capital Improvements Program budget includes recommendations for a total of $1,136.5 million in FY 16 and $683.4 million in FY 17. Of these amounts, Ige said the requests for general obligation bonds total $290.8 million and $255.9 million, respectively.

State officials say these projects are necessary to “maintain and improve our State facilities, including public schools and UH, and will address facility requirements that will allow state programs to better service Hawaiʻi’s people.”

According to the budget document, major GO bond funded CIP requests include:
• $12 million in FY 16 and FY 17 for maintenance of existing State facilities, Statewide.
• $4 million in reimbursable G.O. bond funds in FY 16 for design of the Kakaʻako Makai parking structure, Oʻahu.
• $38.1 million in FY 16 for reauthorization of funding for transfers to the State Educational Facilities Improvement
Special Fund to support previously authorized CIP projects for the DOE.
• $100 million for FY 16 and FY 17 for the maintenance and improvement of Hawaiʻi’s public school facilities, statewide.
• $2.5 million for FY 16 and FY 17 for health and safety improvements for public libraries, statewide.
• $3 million in FY 16 for decommissioning and restoration of four dams in Anahola, Kauaʻi.
• $1.8 million in FY 16 and $3.0 million in FY 17 for sewer improvement on Hawaiian Home Lands in Papakōlea, Oʻahu.
• $2.2 million in FY 16 and FY 17 for the Department of Health’s Wastewater Treatment Revolving Fund and $1.8 million in FY 16 and FY 17 for the Safe Drinking Water Revolving Fund.
• $3.6 million in FY 16 and $59,000 in FY 17 for DOH’s health and safety projects for facilities, statewide.
• $1.2 million in FY 16 and FY 17 for Hawaiʻi Health Systems Corporation projects, statewide.
• $5 million in FY 16 and FY 17 for public housing development, improvements, and renovations, statewide.
• $3 million in FY 16 and FY 17 for rockfall and flood mitigation, statewide.
• $5 million in FY 17 for dredging of the Ala Wai Canal, Oʻahu.
• $4 million in FY 16 for the Department of Land and Natural Resources’ Maui Office Annex Building, Maui.
• $8.5 million in FY 16 and $12.5 million in FY 17 for repair and improvements for Department of Public Safety facilities, statewide.
• $36.1 million in FY 16 and $27.4 million in FY 17 to correct health, safety and code deficiencies for UH facilities, Statewide.
• $13.9 million in FY 16 and $27.6 million in FY 17 for capital renewal and deferred maintenance at UH campuses, Statewide.
• $20.1 million in FY 16 and $20.4 million in FY 17 for CIP staff costs for the Department of Accounting and General Services; Department of Business, Economic Development and Tourism; DOE; and DLNR.

According to Ige, significant projects funded by other means of financing include many to maintain and improve the State’s airports and harbors. Major CIP requests funded by other means of financing as outlined in the budget include:

• $9.8 million in revenue bond funds and $20.3 million in federal funds in FY 16 for runway widening and lighting
improvements at Honolulu International Airport, Oʻahu.
• $2.3 million in revenue bond funds in FY 16 and $24 million in revenue bond funds in FY 17 for aircraft apron reconstruction at Honolulu International Airport, Oʻahu.
• $5 million in revenue bond funds in FY 16 and $36 million in revenue bond funds and $20 million in federal funds in
FY 17 for a regional Aircraft Rescue and Fire Fighting training facility at Kona International Airport at Keāhole, Hawaiʻi.
• $5.5 million in revenue bond funds and $14.5 million in federal funds in FY 16 for airfield improvements at Līhue Airport, Kauaʻi.
• $189,000 in revenue bond funds and $1 .9 million in federal funds in FY 16 and $1 .3 million in revenue bond funds and $11.3 million in federal funds in FY 17 for Part 139 improvements at Hāna Airport, Maui.
• $74.8 million in special funds and $129.1 million in revenue bond funds in FY 16 for rental car facility’ improvements,
statewide.
• $250 million in revenue bond funds in FY 16 for Kapālama Military Reservation Improvements at Honolulu Harbor, Oʻahu.
• $17 million in revenue bond funds in FY 16 for land acquisition and improvements and an additional $10.5 million in revenue bond funds in FY 16 for other improvements at Kahului Harbor, Maui
• $50,000 in revenue bond funds and $200,000 in federal funds in FY 16 and $3.4 million in revenue bond funds and $13.6 million in federal funds in FY 17 for Kīpapa Stream Bridge rehabilitation and/or replacement, Kamehameha Highway, Oʻahu.
• $3 million in revenue bond funds and $12 million in federal funds in FY 17 for replacement of Wainiha Bridges Nos. 1, 2 and 3, Kauaʻi.
• $6 million in revenue bond funds and $24 million in federal funds in FY 16 and FY 17 for major pavement improvements, statewide.
• $2.8 million in special funds and $125,000 in other funds in FY 16 and FY 17 for the Airports Division, $1 .7 million in revenue bond funds in FY 16 and FY 17 for the Harbors Division, and $16 million in special funds and $8 million in federal funds in FY 16 and FY 17 for the Highways Division for CIP staff costs for the Department of Transportation.
• $20 million in federal funds for the Department of Hawaiian Home Lands’ Native American Housing Assistance and Self Determination Act of 1996 development projects, statewide.