Council approves nearly $1.56 billion budget amid ‘economic uncertainty’

Council members ended their work on the fiscal 2026 budget Tuesday, giving final approval to a $1.558 billion spending plan that sets the course for Maui County government beginning July 1.

Council Member Yuki Lei Sugimura, chair of the Budget, Finance and Economic Development Committee, said it was a lot of work to put together the 2026 fiscal plan, “shaped by economic uncertainty, wildfire recovery, and growing community needs.”

“Inflation and federal tariffs have driven up the cost of living, especially for our working families and our kūpuna on fixed incomes,” she said. “Shifting federal priorities have added even more uncertainty to our long-term recovery efforts.”

The Budget Committee’s aim was to address the community’s goals of addressing both immediate recovery from the August 2023 wildfires as well as long-standing needs, she said.

Sugimura emphasized that the budget was developed with extensive community input through listening sessions and online surveys. “The message was very clear: Housing is a high expense and top priority. Services are stressed, stretched thin. Real property valuations are climbing while incomes are not, and families need help to address these challenges,” she said.

Key provisions highlighted by Sugimura include:

• A $12 million appropriation for the Kamaʻāina Credit Program, championed by Council Member Gabe Johnson, to provide relief to Maui County’s working poor
• Funding of $25 million for the Līpoa Apartments project to create “missing middle” housing.
• Adjustments to real property tax rates for non-resident and tourism-based classifications to “align tax rates with people’s ability to pay (for) the services provided.”
• Significant investments in housing initiatives, the rental assistance program and housing for wildfire survivors.
• Increased funding for mental health services, harm reduction and “initiatives to keep our neighbors safe and clean.”
• Support for culture and keiki programs, including early childhood care, STEM Works, performing arts, and travel assistance for youth in rural areas.
• Strengthened support for agriculture and local food systems, with grants for crop restoration and local food production.
• Enhanced support for the Maui Humane Society and efforts to manage invasive species like axis deer.
• Investment in improving County human resources systems, compensation and retention to address approximately 600 county vacancies, including $15 million for potential supplemental agreements for county employees and $7.4 million to compensate firefighters for their work during the COVID-19 pandemic.
• Infrastructure improvements for roads, water, wastewater and public facilities, “especially where housing growth and environmental needs are urgent.”
• A shift of some capital improvement projects from the general fund to bond financing “to preserve liquidity and ensure flexibility for the future.”

“This budget reflects our commitment to resilience, fiscal responsibility, and serving the people of Maui County,” Sugimura said, thanking everyone involved in the “long days and difficult decisions.”

Following Sugimura’s remarks, there was a point of clarification raised by Council Member Tamara Paltin regarding the accuracy of the $15 million figure for supplemental agreements. Budget Director Lesley Milner and Council Member Keani Rawlins-Fernandez explained that, while $5 million had been cut from broader fringe benefits as a line item at first reading, the $15 million allocation remained in the budget under the Department of Finance’s countywide costs, fringe benefits. Of the $15 million, $10 million must be used for a healthcare benefits program.

Johnson expressed pride in portions of the budget, particularly the Kamaʻāina Credit Program aimed at the “asset limited, income constrained, employed” population, known as ALICE.

“The ALICE population in our community is really suffering and it’s growing, and the fact that we did something about it makes my heart swell with pride,” he said.

However, Johnson also said he was frustrated with the budget process and budget reductions that came with concerns about overspending.

“The cuts made me a little bit salty,” he said. But, “we compromise. I get it.”

And, restrictions imposed by the state’s Sunshine Law prohibit “a lot of pre-discussion, so we’re kind of stuck with that,” Johnson said.

However, he expressed hope that the Council could work better with the mayor to improve the budget process.

Johnson also reiterated his stance on property taxes: “We have the lowest property taxes in the nation, and there’s a lot of wealthy folks here who could pay more in property taxes.”

Council Member Shane Sinenci echoed gratitude to Council staff and constituents who turned out at Council budget hearings. He said the community clearly wanted the budget to be “an investment into our people.”

“We heard it everywhere we went,” he said.

Sinenci raised concerns about potential cuts to federal funding for diversity, equity and inclusion initiatives, which are vital for local nonprofits. He charged that the current administration in Washington, D.C., is engaged in a “full assault” on so-called DEI programs.

“That’s us,” he said. “We’re the most diverse state in the entire union. It’s an insult to a lot of our generations of kupuna that fought for equality against injustices and for  rights that exist here in our state.”

Sinenci also highlighted the housing insecurity faced by many families following the lift of Gov. Josh Green’s eviction moratorium.

“I believe the budget should reflect the values of our people,” he said. “I don’t think those values are about giving, you know, the wealthy or people with second homes tax breaks while our people suffer just trying to get a home here.”

During public testimony, council members heard from representatives of Kaʻehu, a nonprofit dedicated to restoring the land and perpetuating Native Hawaiian culture through environmental stewardship and sustainable agriculture.

The group has received a $250,000 grant to manage and restore County shoreline property off of Waiehu Beach Road in Paukūkalo, north of ‘Īao Stream.

Lohelani Furtado-Gaspar, director of cultural education for the group, said its program teaches professional development and provides cultural competency training, along with service work and workshops. The number of people served amounted to 1,707 last year, and 1,666 so far this year, she said.

“So I predict by the end of the year, we’ll probably double our numbers, and I think that is just a testament of the amount of traction that we’ve been getting,” she said.

Also, during final budget deliberations Tuesday, council members re-allocated $75,000 previously granted to Mālama Maui Nui.

Sugimura proposed reducing the Mālama Maui Nui appropriation by $75,000 and creating a new grant of up to $75,000 for Nā Koa Manu Conservation Inc. The adopted budget provides that up to $75,000 must be for the Kula Community Watershed Alliance project for revegetating and reforesting the Kula burn scar.

However, Nā Koa Manu Conservation must receive one-to-one matching funds from the Hawaiʻi Community Foundation before the release of County funds, according to the Office of Council Services.

The Council’s final 8-0 vote, with Council Member Tasha Kama absent and excused, makes the budget virtually veto proof. The next step is to forward Bill 41 and other associated budget bills to the desk of Mayor Richard Bissen for final action.

“We welcome the passage of the fiscal year 2026 budget and are encouraged that it retains much of what we originally proposed to address our core priorities — housing for kamaʻāina, recovery and well-being, and the protection of our cultural and natural resources,” Mayor Bissen said Tuesday afternoon. “We appreciate many of the Council’s additions, including support for the ALICE initiative and the Līpoa Apartments Project.”

Recalling a statement he made during his submission of the administration’s budget proposal on March 25, Bissen said: “We stand united with the Council and our community in our shared commitment to serve the people of Maui County. This budget will serve as our kahua — our foundation — as we move forward into the new fiscal year.”

The Council’s budget is $46.1 million more than the $1.512 billion proposed by the Bissen administration. The Council’s spending plan calls for $1.262 billion for operating expenses and $296.5 million for capital improvement projects.

The new budget goes into effect July 1.