Office of the Governor – News Release – Gov. Green Submits Biennium Budget Prioritizing Affordability, Housing, Health Care, Education, Biosecurity

STATE OF HAWAIʻI
KA MOKU ʻĀINA O HAWAIʻI

JOSH GREEN, M.D.
GOVERNOR
KE KIAʻĀINA

GOVERNOR GREEN SUBMITS BUDGET PRIORITIZING AFFORDABILITY, HOUSING, HEALTH CARE, EDUCATION AND BIOSECURITY

FOR IMMEDIATE RELEASE
December 16, 2024

HONOLULU - Governor Josh Green, M.D., today submitted the Executive Budget for Fiscal Biennium 2025-2027 to the Legislature.

"The budget reflects our values as a state. It prioritizes reducing the high cost of living, improving education, building affordable housing for working families, sheltering and caring for vulnerable Hawai'i residents, and making large investments in health care, biosecurity, wildfire mitigation and infrastructure across our state," said Governor Green.

"We engaged in a collaborative process this year, engaging our Senate Ways and Means Chair Donovan Dela Cruz and House Finance Chair Kyle Yamashita early, to understand their priorities so that we could develop a budget that tackles our largest economic and social challenges, expands education opportunities for our keiki, protects our natural resources, promotes energy independence and strengthens our response to the adverse impacts of climate change," the Governor said.

Total requests for general funds amount to $10.4 billion in fiscal year 2026 and $10.5 billion in fiscal year 2027, which represents an increase of $620 million (6.3%) in the first year and $664 million (6.7%) in the second year.

For fiscal biennium 2025-2027, total requests for capital improvement projects amount to $1.3 billion in fiscal year 2026 and $601 million in fiscal year 2027 primarily funded with general obligation bond funds.

This budget places a high priority on housing, infrastructure and addressing homelessness by including:

• $56 million for the Mayor Wright Homes redevelopment project to transform the 70-year, 364-unit public housing project into a 2,448-unit mixed-use complex for our low-income and middle-income families;

• $30 million for the Aloha Homes Program to develop 99-year leasehold units to support affordable housing efforts;

• $62 million for infrastructure development at UH West Oʻahu for University Village near the rail line;

• $50 million in each fiscal year to continue kauhale development and service provider contracts across the state. To date, 16 kahaule are active statewide. The state of Hawai'i continues to partner with county mayors and communities to provide immediate relief for individuals experiencing homelessness;

• $10.8 million in each fiscal year for the Housing First Program, the Rapid Re-Housing Program, homelessness outreach and for civil legal services.

• $50 million in each fiscal year for the Rental Housing Revolving Fund to support the development of affordable housing across the state;

• $75 million in each fiscal year for the Tier II Rental Housing Revolving Fund, which specifically supports the development of housing for those earning 60% to 100% of the area median income;

• $20 million in each fiscal year for the Dwelling Unit Revolving Fund which supports infrastructure investments; and,

• $25 million in each fiscal year for student housing at the University of Hawai'i to ensure the existing dorm inventory remains active to support the student experience.

The Executive Biennium Budget expands educational opportunities for our keiki and improves recruitment and retention of health care professionals as well as support for critical social programs - doctors, physicians and social workers - in high-shortage and rural areas by including:

• $15 million in each fiscal year for the Health Care Education Loan Repayment Program (HELP). More than 900 medical professionals in the state received debt relief through the first year of this program which improves health care workforce stability. This program pays off educational loans for primary care and behavioral health providers who care for patients in designated Health Professional Shortage Areas of Hawai'i. Applications remain open for the third cohort. For more information, please go here.

• $94 million per year for the Department of Education to continue critical programs such as Summer Learning Hubs, Advanced Placement classes, Hawaiian language immersion programs and for increased support for school coaches and athletics transportation.

• $30 million in fiscal year 2026 for the Department of Human Services to continue support for critical social programs like child protective services, BESSD, and rental assistance.

To provide more resources for resilience efforts, to broaden the responsibility in preserving Hawai'i's natural beauty and to protect against future climate-related disasters, the Executive Biennium Budget also includes:

• $2.2 million for the State Fire Marshal and the development of the agency;

• $15 million for the Department of Transportation Fire Mitigation program;

• $13 million for Lahaina Small Boat Harbor Reconstruction;

• $12.7 million each fiscal year for 44 positions and to fund biosecurity efforts at the Department of Agriculture; and,

• $4.1 million for the Hawai'i Invasive Species Council.

The preparation for this Executive Biennium Budget included a deep look into long-standing vacancies across departments in the state. Department of Budget and Finance Director Luis Salaveria conducted a systematic review of positions that have been vacant for more than four years. This was to ensure that public resources are allocated effectively. Considerations for any new position were analyzed against existing vacancies as some these long-standing vacancies could be repurposed to meet new and emerging needs in the departments.

Governor Green also emphasized that the Rainy-Day Fund remains at a historic and healthy $1.5 billion.

"Despite one of the most tragic and devastating disasters in our state history, we were able to preserve the entirety of the state's Rainy-Day Fund, which is at its highest-ever level of $1.5 billion, while providing increases in services and large investments in major areas for the state. Our state financial plan shows healthy balances and we are fortunate to be in a strong financial position as we navigate through the wildfire settlement, deliver historic tax relief to residents, and continue to provide services and investments that our community needs," said Governor Green.

The Governor and his team continue to review legislative proposals for inclusion in the administration's legislative package. The Council on Revenues will convene on January 8, 2025 to review tax collections and make its revenue projections which currently stand at 3.5% growth for Fiscal Year 2025 after incorporating the revenue impact of historic tax relief.

"We took a collaborative approach to the budget this year. It was important to have the input of state leaders like Sen. Dela Cruz and Rep. Yamashita. I look forward to working with the Legislature in the upcoming session to continue our progress on addressing the high cost of living, finding revenue for resiliency projects, and securing funds for the wildfire settlement so that those who have lost so much can truly begin to rebuild," said Governor Green.

The slides presented by the Governor can be seen here.
The Budget in Brief with the Executive Biennium Budget for Fiscal Biennium 2025-27 is publicly available.
Budget documents can be found online.
Photos from today's news conference, courtesy Office of the Governor.
Double-click here to view the Facebook livestream.

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Media Contacts:
Erika Engle
Press Secretary
Office of the Governor, State of Hawai'i
Phone: 808-586-0121
Email:[email protected]

Makana McClellan
Director of Communications
Office of the Governor, State of Hawaiʻi
Cell: 808-265-0083
Email: [email protected]

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