State budget directs $200 million to Maui wildfire recovery

A Hawaiʻi Appleseed report released Thursday details the state’s $20.32 billion executive operating budget and its $4.53 billion for capital improvements, highlighting $200 million for Maui wildfire recovery, including rebuilding King Kamehameha III Elementary.

“This year’s budget was shaped by a perfect storm,” said Hawaiʻi Appleseed Director of Tax and Budget Policy Devin Thomas, noting revenue loss from Act 46, hundreds of millions in federal cuts under federal House Bill 1, and climate disaster costs.

The general excise tax remains the state’s largest revenue source, generating $5.56 billion, or 53.1% of total state revenue.

Hawaiʻi Appleseed reported the state maintains a regressive tax structure, where the poorest 20% of residents pay 14.1% in effective state and local taxes, and the wealthiest 1% pay 10.1%.

It noted key investments, including:

●  $700 million for county transit funding and a new major disaster fund.

● $49.5 million for the New Aloha Stadium district.

For food equity, lawmakers passed Senate Bill 3245, which simplified SNAP recertification for kūpuna, and House Bill 1518, which created a pre-release SNAP application for incarcerated individuals. The budget bill, House Bill 1800, also secured Farm to Families funding.

Under transportation equity, the “Summer Streets” pilot and e-bike classification passed, but pedestrian safety measures, jaywalking reform and Keiki Ride Free died without explanation.

Hawaiʻi Appleseed also released an annual legislative report titled Policy in Perspective.

Hawaiʻi Appleseed Executive Director Will White said the report analyzes why certain legislative outcomes happen.

“What we found is a pattern: reforms that would rebalance power away from established interests consistently fail,” White said.

Lawmakers paused tax cuts for high earners and added a surcharge on income over $1 million. Broader tax reforms failed to pass.

Failed bills included measures designed to lower housing costs, such as funding for the Department of Hawaiian Home Lands. A conveyance tax bill that would have provided $60 million annually for the department died in conference.