Hawaii House and Senate leaders agree on state budget

State House and Senate negotiators have unanimously approved a budget — pending full approval by both chambers — aimed at key priorities including early childhood education, homelessness, housing, adding more nurses and shoring up neighbor island and rural hospitals.

Specific details of the proposed budget are expected to be revealed by the end of the week.

Overall, the budget includes general funds of $11.3 billion in fiscal year 2024 and $10.4 billion in fiscal year 2025; capital improvement funding of $2.9 billion in fiscal year 2024 and $1.3 billion in fiscal year 2025; and $40 million in grants-in-aid to nonprofit organizations.

Gov. Josh Green, who will have to sign off on the budget, said in a statement to the Honolulu Star-Advertiser: “We were pleased to hear some of the major highlights from their decisions on the budget mirrored our priorities on housing, homelessness, health-care and climate. We are anxiously awaiting hopeful passage of our tax relief proposals for working families, and will have to more carefully scrutinize the budget when the documents become available. But, overall, we are really pleased with where we’re at right now in this process.”

House and Senate members and leaders announced highlights on Wednesday after the budget was approved Tuesday night in a joint conference committee to resolve differences in both versions.

Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee who led the Senate side of the budget conference committee, said in a statement that the budget addresses “not only the priorities of the Senate, House, and the Governor, but it is also reflective of the concerns and issues that matter the most to the people of Hawai‘i. In working collaboratively with the Governor and our colleagues in both chambers, we are confident that this bill will provide opportunities for Hawai‘i residents not just to survive, but to thrive in Hawai‘i.”

Rep. Kyle T. Yamashita, chair of the House Finance Committee who led the House side of the budget conference committee, said in a statement the budget “focuses on healing and investing in the future. We are increasing Medicaid reimbursement rates by providing over $72 million to our health care industry to make it more resilient in providing critical health care services, especially to lower income families. We are providing over $100 million to agencies responsible for healing our natural resources by fixing our parks and beaches, rejuvenating our conservation and preservation lands, and supporting our aquatic resources. We are adding $38.8 million to the Preschool Open Doors program that will get matched by federal funds, allowing us to expand public and private preschool and early learning opportunities to three-year-olds. We are investing over $300 million to increase our inventory of affordable housing for the middle class.”

The budget includes:

>> $202.3 million in fiscal year 2024 and and $182.5 million in fiscal year 2025 for capital improvement projects for the University of Hawaii, including $14 million for upgrades to UH locker rooms, its baseball stadium and other athletic facilities.

>> UH funding also includes $17.5 million in fiscal year 2024 to restore cuts during COVID-19.

>> $170 million in fiscal year 2024 for a public-private partnership to develop housing for teachers, educators and staff, starting at Nanakuli, Waipahu and Mililani high schools.

>> $109 million in fiscal year 2024 and $24.2 million in fiscal year 2025 to the state departments of Agriculture and Land and Natural Resources to increase food sustainability and local farm production and to protect water sheds and “critical habitat.”

>> $100 million in fiscal year 2024 and $180 million in fiscal year 2025 for the rental housing trust fund; and $50 million in both fiscal years for the dwelling unit revolving fund.

>> $6 million in fiscal year 2024 for the state’s Rent Supplement Program.

>> $38.8 million in fiscal year 2025 to expand preschool education to include 3-year-olds.

>> $898,560 for after- school care for students with disabilities.

>> $15 million in fiscal year 2024 for the Ohana Zones Pilot Program.

>> $15 million in fiscal year 2024 and $33 million in fiscal year 2025 for more “kauhale” tiny home homeless villages across the state.

>> $3.7 million in fiscal year 2024 and again in fiscal year 2025 for the state’s Housing First program that places the most chronically homeless people, often with mental health and substance abuse issues, into fair market housing that comes with social service support.

>> $1.7 million in fiscal year 2024 and again in fiscal year 2025 for homeless outreach services.

>> $3.7 million in fiscal year 2024 and again in fiscal year 2025 for the Rapid Re-Housing program, which provides temporary financial assistance with rent or utility payments to keep renters housed to prevent them from becoming homeless.

>> Over $12 million in fiscal year 2024 and $12 million in fiscal year 2025 for contracted skilled nursing services.

>> $129 million in fiscal year 2024 and $43.5 million for fiscal year 2025 for public hospitals, including:

>> $50 million to expand Hilo Medical Center and $18.5 million for Kona Community Hospital;

>> $23.2 million for Kauai medical facilities;

>> And $6 million for Kahuku Hospital.

Hilo Medical Center was founded as a 10-bed hospital in 1897 and is now the largest hospital on Hawaii island.

“The funding for this expansion at Hilo Medical Center will address the issues of expanded services and increased capacity that have been a problem recognized by our Hilo Representatives,” Rep. Richard H.K. Onishi (D, Hilo) said in a statement.

In a statement, Rep. Chris Todd (D, Hilo-Keaau-Ainaloa) called the funding for Hilo Medical Center “a massive win for the future of East Hawai‘i.”