Budget panel advances its fiscal 2025 spending plan to full Council

The Maui County Council’s Budget, Finance and Economic Development Committee has completed its version of fiscal year 2025 budget, calling for overall spending of $1.647 billion, a 2.92% reduction from Mayor Richard Bissen’s proposed budget of $1.697 billion.

“The committee’s version of the budget does not incorporate state funding for recovery projects, nor the bridge loan from Hawaiʻi Community Foundation included in the Mayor’s proposed budget,” said Committee Chair Yuki Lei Sugimura. “Still, the committee, in working with the administration, was able to rework funding and include all of the originally proposed  projects that will be vital in supporting recovery efforts, including housing and infrastructure.”

Sugimura said highlights from her committee’s work on the budget includes Affordable Housing Fund appropriations to support housing in wildfire-impacted West Maui. These include: $36 million for a loan to Ikaika ʻOhana for Kaiāulu o Kupuohi, including $3.1 million for land acquisition; a $15 million grant to Maui Oceanview LP for the Pulelehua housing development; and $3 million for the Permanently Affordable Rental Unit Strategy.

From the General Excise Tax Fund, the committee sets aside $33.4 million for costs related to the wildfire permanent disposal site at the Central Maui Landfill; nearly $16.7 million for water infrastructure and wastewater repairs; and $10 million for the acquisition of private water systems and develop a municipal water system.

The committee proposes to use bond funding to pay $5 million for road and sidewalk repairs related to the August 2023 Maui wildfires; $5 million for temporary repairs for sewer pump stations damaged by the wildfires; and $8 million for repairs to storm drainage in wildfire-impacted areas and to implement green infrastructure and flood control improvements to current standards.

From the General Fund, the committee calls for spending $7,967,000 for the Office of Recovery for wildfire-related matters; $14 million for the Maui Emergency Management Agency for continued security in and around Lahaina; and continued funding for social services and economic development.

Sugimura said nonprofit funding proposed by the Bissen administration remained largely unchanged, particularly in the Department of Human Concerns. Some grants received 5% cuts, mainly in the budget of the Office of the Mayor, she said.

The Budget Committee did not factor in funding from the state included as part of Senate Bill 3068. That measure provides wildfire recovery funding in the form of a loan, with Maui County responsible for interest payments as well.

“Because of this, and with guidance from the administration, the committee’s version of the budget funds the recovery projects proposed by the Mayor utilizing a combination of bond funding and cash from revenue sources such as the general excise tax surcharge,” Sugimura said.

First reading of the Council’s version of the budget is set for May 21. Second and final reading is scheduled for June 5.

The fiscal 2025 budget goes into effect July 1.