Senate WAM Committee votes to approve the Senate’s version of the State Budget Bill

The Senate Committee on Ways and Means advanced the State Budget Bill, HB1800 HD1 SD1, Wednesday. “As the Senate strives to preserve future income tax cuts for working families, the budget reflects a multi-pronged approach that captures underutilized funds to prioritize resources for essential public services,” according to the Hawaiʻi State Senate Majority.

Federal funding cuts shifted administrative costs to the State for essential services like SNAP and Medicaid. Federal policies have also created economic uncertainty, resulting in lower general fund tax revenues. While addressing these shortfalls, the Senate Draft of HB1800 also directs funding toward critical areas including housing affordability, workforce development and economic diversification, climate resilience, and environmental stewardship as identified in the Senate Majority Priority package.

“This budget is a part of a larger package of revenue-generating strategies, long-term investments, and cost-saving measures to increase the resilience of the State, while also delivering on the meaningful tax reform that was promised to our working- and middle-income taxpayer,” said Sen. Donovan M. Dela Cruz (District 17 – Portion of Mililani, Mililani Mauka, portion of Waipi‘o Acres, Launani Valley, Wahiawā, Whitmore Village), Chair of the Senate Committee on Ways and Means. “Protecting the tax cuts to working families is a shared responsibility, and we must all do our part.”

The budget thus includes cost–saving strategies by reducing unspent funds by state agencies as averaged over the previous five years, reducing positions that have been vacant for more than five years, and reducing positions that are not in active recruitment, according to Senators.

“In these times of economic uncertainty, we focused on the essentials: improving safety and security for our residents by fortifying critical infrastructure and maintaining and modernizing state assets,” said Sen. Sharon Y. Moriwaki (District 12 – Waikīkī, Ala Moana, Kaka‘ako, McCully), Vice Chair of the Senate Committee on Ways and Means. “We’ve also focused on our Senate priorities of housing, climate and hazard resilience, economic diversification including agricultural innovations, and education.”

The Senate Committee on Ways and Means today also passed the Judiciary Budget Bill, HB2095 HD2 SD2. Both budget bills will proceed to the Senate floor for third reading.

Click Here for Highlights from Senate Budget Bills.