Proposed Budget - Fiscal Years 2024-2025
On December 19, Hawaii Governor Josh Green released his budget proposal for the next biennium, covering fiscal 2024 and fiscal 2025. The budget calls for total spending of $18.02 billion in total spending in fiscal 2024 and $17.86 billion in fiscal 2025, with general fund operating spending at $9.85 billion in fiscal 2024 and $9.66 billion in fiscal 2025. This represents a 4.4 percent increase in total spending and a 7.3 percent increase in general fund spending in fiscal 2024 compared to fiscal 2023 appropriated levels. The budget is based on general fund revenue estimates of $10.37 billion in fiscal 2024 (a 4.0 percent increase from fiscal 2023’s estimated level) and $10.73 billion in fiscal 2025 (a 3.5 percent increase from fiscal 2024’s estimated level). The Emergency and Budget Reserve Fund (EBRF) is projected to have a balance of $972.8 million at the end of fiscal 2023, while the governor’s budget proposal also includes a $500 million deposit to the EBRF.
Proposed Budget Highlights
In releasing his budget proposal, the governor said he worked with the prior administration to include some high-priority items in the budget submittal. The governor added he is still reviewing other requests from state agencies and will be transmitting additional budget items to the legislature in the coming months. In his message to the legislature, the governor said he will work to implement an emergency housing plan; ease the state tax burden on necessities such as food and medicine; address the teacher shortage; increase investments in universal prekindergarten; make healthcare a priority; provide the necessary support to the Native Hawaiian community; create a sustainable tourism industry, and address climate change and mitigate its impact.
Highlights of the governor’s originally submitted budget proposal include:
- $15 million in each fiscal year for the ‘Ohana Zones Pilot Program, which has served over 5,510 previously homeless individuals and has placed 1,368 people into permanent housing
- $10.8 million in each fiscal year for homeless service and outreach programs
- $10 million in fiscal 2024 and $20 million in fiscal 2025 for the Hawaii State Loan Repayment Program, which pays off educational loans for primary care and behavioral health providers who work in designated health professional shortage areas
- Funding for over 60 positions and $4.4 million for nursing and medical-related programs across University of Hawaii campuses and community colleges
- $5 million in fiscal 2024 and $10 million in fiscal 2025 for Medicaid provider payments, increasing the Medicaid reimbursement rate for providers
- $50 million for Hilo Medical Center for the expansion of the intensive care unit and medical surgical unit