The state’s capital improvement projects revised budgets set aside funds for projects such as the Lahaina small boat harbor and the third Hawai‘i State Veterans Home on Maui, with a total of $35 million allocated for the latter, plus $58 million in federal funds.
Key Highlights of the FY26 and FY27 Budget
- $3.2 million for Kamehameha III temporary school in Lahaina
- $18 million for Maui Health System
- $35 million for Maui Health System’s third Hawai‘i State Veterans Home
- $240 million for financing programs, such as the Rental Housing Revolving Fund and Dwelling Unit Revolving Fund, for affordable housing statewide
- $2.4 million for the Department of Law Enforcement’s Fireworks Task Force
The budget measure, finalized in a conference committee after both chambers passed different versions, now moves to a final reading before heading to the Governor’s desk for approval.
Department of Accounting & General Services
| Department | Amount |
|---|---|
| Department of Accounting & General Services | $3,200,000 |
| Kamehameha III temporary school | $3,200,000 |
| Streaming of all State and Local Boards and Commission meetings | $7,350,000 |
| Microsoft 365 G5 licenses | $5,530,000 |
| Cybersecurity Risk Mitigation | $3,200,000 |
| Independent Verification and Validation | $2,000,000 |
| Data/AI Office, AI Risk Management Tools, Geospatial License Renewal | $3,773,000 |
| Cemetery Management Office | $2,255,500 |
| Electronic Filing System Upgrade | $2,495,000 |
| Voting System Contract, Digital Voter Information Guide, Electronic Registration Information Center | $4,103,275 |
| Expansion of 911 services to new/emerging technologies | $10,000,000 |
| System support for Enterprise Financial System Project | $3,306,644 |
| Business Transformation Office | $1,601,280 |
| Business plan for revenue generation development | $150,000 |
The conference committee worked closely with lawmakers to create a spending plan that balances the needs of various departments and agencies.
Department of Agriculture
- $26,649,462 for biosecurity
- $556,000 for vehicle replacement
- $2,000,000 for irrigation systems revolving fund supplement
The conference committee emphasized collaboration in crafting the spending plan, with Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, saying, “Collaboration is key to finding solutions that meet the needs of our communities.”
Department of Education
- $150,000,000 for deferred maintenance
- $4,002,384 for Kaiapuni Program
- $11,781,786 for Athletics (travel, coaching salaries, athletic training supplies, flag football, equity, trainer at Kūlanihāko‘i HS)
- $2,200,000 for English Learner Standards
- $41,980,000 for Summer Programs
- $7,550,000 for Workforce Readiness
Economic Development & Tourism
- $36M for Convention Center repairs and upgrades
- $29M for post-harvest/food processing facilities
- $21M for small animal slaughter, processing, and storage facility
- $2,000,000 for Manufacturing Assistance Program
- $2,000,000 for Hawai‘i Small Business Innovation Research Phase II & III
- $2,000,000 for Accelerator Grant Program
Capital Improvement Projects
| Project | Amount |
|---|---|
| Lahaina small boat harbor | $28M |
| Third Hawai‘i State Veterans Home on Maui | $35M (state) + $58M (federal) |
| King Kalakaua Building | $12M |
| Statewide siren maintenance and upgrades | $10M |
| National Guard Youth Challenge Academy | $4,466,126 |
| King Kalakaua Building | $12M |
The budget measure includes $240 million for financing programs, such as the Rental Housing Revolving Fund and Dwelling Unit Revolving Fund, to support affordable housing statewide.
House of Representatives
House Finance Chair Kyle Yamashita
“The plan is’responsible and forward-thinking,’ and I’m happy to see that it includes funding for critical programs like the Rental Housing Revolving Fund and the Department of Education’s deferred maintenance.
Senate Ways and Means Committee Chair Donovan Dela Cruz
Collaboration is key to finding solutions that meet the needs of our communities.
Conclusion
The biennium budget now moves to a final reading before heading to the Governor’s desk for approval. The conference committee worked closely with lawmakers to create a spending plan that balances the needs of various departments and agencies. As the budget measure progresses, lawmakers and stakeholders will continue to review and refine the plan to ensure it meets the needs of the community.
