Gov. Green signs budget; identifies healing and resilience for Maui among top priorities

Gov. Josh Green, M.D., signed House Bill 1800 (HB 1800), the supplemental budget bill which amends Act 164, Session Laws of Hawaiʻi 2023 and appropriates funds for Executive Branch operations and capital improvement projects. The budget appropriates $19.1 billion across all means of financing, including more than $10.3 billion in general funds for operating support for fiscal year 2025. For CIP, $4.5 billion is appropriated across all means of financing including $1.4 billion in general obligation bond funds for construction projects statewide. HB 1800 represents an increase of more than $480 million in general funds for fiscal year 2025, with significant funding in key priority areas for the state.

“This budget makes historical investments in affordable housing, health care, climate and education – all of our big priority areas as a state. It will provide over $200 million for Maui’s recovery efforts through the Major Disaster Fund. In addition to what is funded in the budget, we passed historical tax reform this session which will put more money into the pockets of local families to combat inflation,” said Green.

“Building affordable housing, giving more money back to families through the tax plan and boosting our social services and access to health care will allow more families to be able to afford to stay here in Hawai‘i and to thrive in our island home.”

Included in HB 1800 were line-item budget reductions and vetoes totaling $74.2 million for operating and $79.5 million for CIP in general funds, representing less than 1% of the total state budget. These reductions are part of a larger plan that reduced other appropriation bills to rebalance the state’s finances and maintain stable reserves. These items were identified because they have other sources of funding available or were not feasible given funding timelines and department capacity.

Last year, the governor issued line-item budget reductions and adjustments totaling $1 billion dollars. This year, Green issued more than $500 million in adjustments to balance the financial plan and ensure a strong carryover balance while maintaining a $1.5 billion rainy day fund.

The top five priority areas funded through appropriations in the budget are:

Healing and Resilience for Maui

“In August 2023, we witnessed one of the worst natural disasters to affect our state. Over the last year, the Green administration has led a comprehensive disaster response, which has shifted into the recovery and rebuilding phases,” according to a news release issued by the governor. “Through building temporary housing for survivors, creating the One ʻOhana Fund for victims and their families, investing in public infrastructure in affected communities and funding measures to mitigate and prevent future wildfire risk, the state of Hawaiʻi is committed to the  long-term recovery efforts. This budget contains more than $200 million in general fund appropriations that will be deposited into the Major Disaster Fund to support Maui wildfire recovery efforts, including those prioritized by the Legislature this session,” according to the release.

Developing Affordable Housing and Reducing Homelessness

Housing continues to be a major issue for the state and its residents. Families continue to leave the state because of a lack of affordable housing. With 21 kauhale (tiny village homes) and 13,000 new affordable units set to be built by 2026, the Green Administration has demonstrated its deep commitment to building housing for all Hawaiʻi residents, especially for its most vulnerable groups. 

This budget continues the administration’s multipronged approach by funding:

• $230 million in G.O. bond funds for Hawai‘i Housing Finance and Development Corporation to finance additional affordable housing statewide; 
• $5 million in general funds for Hawai‘i Community Development Authority to build supportive housing and support services;
• $10.5 million in general funds for the Hawai‘i Public Housing Authority rehabilitation and repair of housing units; 
• $1.5 million in general funds for the State Rent Supplement program for Hawai‘i Public Housing Authority to help low-income residents pay rent;  
• $33 million for kauhale projects statewide for the Office on Homelessness and Housing Solutions; and
• $1.32 million in general funds for state homeless programs contract increases. 

Investing in Hawaiʻi’s Health Care Systems

Access to quality care is a key pillar of Governor Green’s The Hawaiʻi We Deserve policy framework. Ensuring that all residents have access to high-quality, comprehensive health care services is vital to the well-being and resilience of our people. 

With the recently expanded HELP program to provide loan repayment assistance to Hawaiʻi’s healthcare professionals as well as unprecedented private investments into our statewide health care systems, the Green Administration is committed to making historical investments into our health care system. This will create positive downstream effects in building resilient and healthy communities and generate long-term cost-savings for the state by providing upfront access to quality health care services. 

This budget includes: 

• $30 million in general funds, and $42.3 million in federal funds to increase the rate of the Medicaid reimbursement for healthcare providers to be equal to Medicare 
• $6.6 million for Behavioral Health Crisis Center and Supportive Housing Services
• $5.75 million in general funds and $9.7 million in federal funds for Medicaid payment adjustments for home- and community-based services 
• $2.6 million in general funds and $3.8 million in federal funds for behavioral analysis payments for the Medicaid program 
• $1 million in general funds for the in-community youth program services at the Hawaiʻi Youth Correctional facility to support youth mental health 
• $3 million in general funds for mobile treatment clinics 
• $17.4 million in general funds for the Maui Health System operating subsidy 
• $9.5 million for the Hawai‘i State Hospital
• $6.8 million in general funds for contracts for psychiatric in-patient services for the Hawai‘i State Hospital 
• $13 million for locum tenens (substitute practitioners) for Adult Mental Health – Inpatient at Hawai‘i State Hospital
• 4 positions and $2.1 million in general funds for positions, new cameras, and enhanced security for the Hawai‘i State Hospital 
• $8.8 million in general funds for new and existing group home services
• $18.8 million for contracts for the Child and Adolescent Mental Health Division
• $4.9 million in general funds for early intervention services for the Family Health Services Division 
• $4.2 million for emergency medical services and injury prevention system 
• $2 million for essential rural medical air transport

Preserving our ‘Āina for Generations to Come

As one of the most ecologically diverse areas in the world, Hawaiʻi serves a critical role in leading global environmental protection and ecological conservation efforts and policies. Through the efforts of state agencies such as the Department of Land and Natural Resources, the Department of Agriculture, the Hawai‘i State Energy Office and the Hawai‘i Department of Transportation, as well as newly formed working groups such as the Governor’s Climate Action Team (CAT), the Green Administration is committed to comprehensive plans to reduce greenhouse gas emissions, transition energy infrastructure to renewable sources and invest in policies to combat and remove invasive species across our islands.  

To further the state’s commitments to environmental conservation, this budget includes:

• $20 million in state park special funds for state park administration and operations 
• $3 million in general funds for geothermal energy exploration 
• $21.3 million for ecosystem protection and restoration efforts
• $8.9 million for a native resources and fire protection program
• $24.7 million for natural area reserves and watershed management
• 3 permanent brand managers and $3.7 million in general funds for regenerative tourism development and community enrichment program, including funding for the Kūkulu Ola program which provides funds to community-based awardees that enhance, strengthen, and perpetuate Hawaiian culture through genuine experiences for residents and visitors

Educating our Keiki and Investing in Hawaiʻi’s Future

Educating our keiki and ensuring that our state’s educators, classrooms, and programs are adequately equipped and resourced is a major area of focus for the Green Administration. Through negotiating fair deals with our teachers to combat our state’s public school teacher shortage, developing teacher housing statewide and investing in programs for our keiki, Governor Green’s comprehensive approach is supporting our education system. 

To further the state’s commitment to education, this budget includes: 

• $20.9 million for summer learning hubs to ensure summer programming for our keiki 
• $18 million for school food service program
• $18.2 million for school bus contracts
• $14.9 million in pay increases for educational assistants and vice principals
• $6 million for weighted student formula for small and remote schools
• $5 million of funding school security and active threat response training for public schools
• $5 million for mobile applications to mitigate threat-based safety risks 
• $1.3 million in general funds for the Hawaiʻi Keiki Healthy and Ready to Learn Program, which provides access to school nursing services in public schools 
• $1.3 million for special education and student support services, including speech-language pathology services
• $3.6 million for work-based learning for students with severe disabilities
• $1 million for instructors, technicians and other staff to expand the nursing programs at UH Mānoa and UH West Oʻahu
• $3.7 million to continue the Hawaiʻi Promise scholarship program for the community colleges system to cover last-dollar education costs, including tuition, fees, books and other supplies
• $925,000 for JABSOM’s Neighbor Island Health Access and Pathway Extension, to expand access to health care for underserved communities
• $3,200,000 for UH Mānoa women’s sports, to include travel, visiting team guarantees, meals, recruiting and supplies
• $2.8 million for Statewide Access Master Plans for the Community Colleges
• $1.2 million for staff, equipment, training and supplies to comply with Act 76, SLH 2023 which expands protections for victims of sexual and domestic violence in the UH System