Maui Council Budget Committee slightly trims mayor’s $1.616 billion budget

The Maui County Council’s Budget, Finance and Economic Development Committee completed its review of Mayor Richard Bissen’s proposed fiscal year 2027 budget this week, unanimously adopting a revised spending plan of approximately $1.608 billion.

The committee’s version comes in about $8.44 million, or 0.52%, below the mayor’s original proposal. Both spending plans are higher than the $1.556 billion budget approved by the Council last year for the current fiscal year.

The committee also recommended full Council passage of bills for capital improvement projects and bond financing, among others.

Committee budget revisions

A 266-page spreadsheet with committee revisions to the mayor’s budget can be found here.

Among many Council budget changes was a proposal by Council Member Nohelani Uʻu-Hodgins to cut $1.2 million from the Managed Retreat Revolving Fund and add that amount to the Special Management Area Revolving Fund. The motion came with the condition that up to $2.5 million must be for a grant to Mantokuji Mission of Pāʻia for shoreline restoration and rehabilitation of property owned by the mission that fronts Mantokuji Bay.

The motion passed 8-1, with Council Member Keani Rawlins-Fernandez dissenting.

Uʻu-Hodgins also proposed adding a condition under the General Excise Tax Fund to require that up to $9 million must be for the Hoʻonani Village mixed-use development project for well and water system improvements, infrastructure and connections.

In another revision, Council Member Shane Sinenci proposed adding a $3 million grant to the Open Space, Natural Resources, Cultural Resources and Scenic Views Preservation Fund with the condition that up to $3 million must be a grant to Ke Ao Hāliʻi for the purchase of approximately 115.56 acres at Haneoʻo, Hāna, to acquire land for conservation.

The committee, as a friendly amendment to Sinenci’s motion, agreed to delete a prior condition for the acquisition of property located at 131 Shaw St. in Lahaina and for the Ke Ao Hāliʻi acquisition of 9.78 acres located at Nānualele, Kawaipapa, Hāna.

Sinenci also was successful in gaining a $59,000 grant to the Kīpahulu Community Association for the purchase of approximately 2.640 acres in Kīpahulu for conservation.

Committee members agreed with Council Chair Alice Lee’s proposal to amend the condition for the ʻOhana Assistance Program under the Homeowner Programs Revolving Fund to require that at least $3 million must be for disbursement of grants of up to $100,000 each for qualified Maui County residents participating in the ʻOhana Assistance Program.

Lee also successfully proposed increasing a grant to Hale Mahaolu for homeowners and housing counseling by $165,000 for a total of $375,000.

Committee members unanimously agreed with Council Member Tom Cook’s proposal to include a capital improvement budget item for the Department of Public Works to spend $3.4 million to acquire land in Kīhei for the southern terminus of the North-South Collector Road and flood control. The money will pay for a 14-acre parcel on Alahehe Place.

Rawlins-Fernandez won unanimous committee approval for her proposal to add $2 million to the Voluntary Housing Deed Restriction program.

The committee was divided 4-4, with Uʻu-Hodgins absent during voting, on a proposal by Rawlins-Fernandez to remove a $2.5 million appropriation from the Department of Environmental Management budget for the Māʻalaea Village Association to support efforts to eliminate the use of injection wells at Māʻalaea Village in South Maui.

Joining Rawlins-Fernandez in voting “aye” were Sinenci, Yuki Lei Sugimura and Kauanoe Batangan. Voting “nay” were Cook, Lee, Tamara Paltin and Gabe Johnson.

Paltin received unanimous committee support for her proposal to provide a $300,000 environmental protection grant to the Maui Ocean Center Marine Institute.

Uʻu-Hodgins received committee approval for her proposal to provide up to $40,000 to the Haʻikū Community Association to support the Haʻikū Stream Testing Program.

Uʻu-Hodgins also successfully proposed a grant of up to $50,000 for Nā Maka O Māliko for disposal, recycling, testing, and remediation of environmental contamination.

Johnson successfully proposed a new budget item, Nāulu Cloud Revival, for $2.4 million with the following conditions: up to $1,100,000 must be for Mālama Haleakalā Foundation; up to $740,000 must be for Uhiwai o Haleakalā; and up to $500,000 must be Kahoʻolawe Island Reserve Commission.

Budgetary cuts and rationale

On March 25, Bissen proposed a $1.616 billion budget. The administration’s request allocated $1.245 billion for operations and $371.1 million for capital improvements.

The committee’s review spanned several weeks of deliberations that touched on staffing levels, position vacancies, department-by-department spending, and the county’s ongoing fiscal discipline priorities.

Committee Chair Sugimura set the tone early in the process, calling for a disciplined approach to budget-making and citing the strain that high gas and grocery prices have placed on Maui households.

Vice Chair Batangan proposed an across-the-board 1.25% cut for non-first-responder departments, which he estimated would yield more than $5 million in savings. Batangan argued the proposal was warranted by the county’s record of annual carryover savings dating to 1999, suggesting the consistent surplus indicates the county has been overtaxing its citizens. The county’s current carryover savings is estimated at more than $174 million.

Water and sewer fee increases

Budget Committee members did not recommend substantive changes to the Department of Water Supply’s proposed 5% increase to monthly service fees and higher tiered rates for fiscal 2027. The additional funds are needed to pay for $30 million in annual infrastructure needs. The hikes will help the department avoid a $2.6 million deficit and pay for aging pipe replacements and new water sources.

Meanwhile, the committee made no revisions to the Department of Environmental Management’s request for a 9% sewage fee increase for fiscal 2027, which follows an identical 9% hike already in effect for the current fiscal year.

Starting July 1, 2026, the monthly base charge for a single-family home will jump from $51 to $61. For a local family reaching maximum usage levels, this means an annual wastewater bill of $1,245 as the monthly cap rises from $92.40 to $103.75.

The sewer usage fee increase continues a trend of rising costs after years of smaller adjustments, including a 2% increase in 2025 and a 3% rise in 2023. Multi-family residence rates are also slated to rise from $78.60 to $89.50 per month.

Refuse collection fees will also increase to pay for a new routing and customer service system. Residents on Maui and on Molokaʻi will pay $37 a month, while residents on Lānaʻi will see a 50-cent increase to $18.50.

Staffing and vacancies

Among the issues that surfaced during deliberations was the administration’s proposal for more than 90 expansion positions, even as more than 90 existing county positions remained vacant. Uʻu-Hodgins questioned whether the county should prioritize a review of its current vacancies before authorizing the creation of new roles.

Revenue and property values

On the revenue side, all properties in Maui County were valued in 2026 at approximately $83.18 billion. Real property taxation accounts for 40.8% of the county’s annual revenue. Transient vacation rentals and short-term rental housing generate the highest share of any single property class, totaling more than $254 million from 13,234 parcels.

Next steps

A detailed committee report spelling out the final rationale behind specific cuts and policy choices is scheduled for release May 8. The full Council is then scheduled to take up the budget for a final vote at its May 15 meeting. A resolution approving proposed real property tax rates will also be taken up at that meeting.

At 9 a.m. May 15, the full Council will hold a public hearing on proposed fuel rates. See below:

The county’s new fiscal year begins July 1.