Proposed Supplemental Budget - Fiscal Year 2025
During the 2023 legislative session, Hawaii enacted a biennial budget for fiscal 2024 and fiscal 2025. On December 18, 2023, Hawaii Governor Josh Green released a supplemental budget proposal for fiscal 2025. Under the governor’s revised operating budget recommendation, total spending in fiscal 2025 would be $19.2 billion, a 1.1 percent increase compared to previously enacted levels for fiscal 2024, and general fund spending would be $10.2 billion in fiscal 2025, a 4.8 percent decline from previously enacted levels for fiscal 2024. The governor’s supplemental budget request adds $326 million in general funds to the operating budget to continue essential operations and support statewide priorities, and $890 million in general obligation bond funds for capital improvement projects statewide. For fiscal 2025, total proposed adjustments to the operating budget for all spending would amount to a net increase of 5.7 percent compared to previously enacted fiscal 2025 levels, and a general fund net increase of 3.3 percent compared to previously enacted fiscal 2025 levels. The revised budget is based on the state’s Council of Revenues’ September 2023 general fund revenue forecast projecting 5.2 percent revenue growth in fiscal 2025, following 1.3 percent estimated growth in fiscal 2024. The proposal calls for a general fund ending balance of $755 million and a balance in the Emergency and Budget Reserve Fund (EBRF) of $1.6 billion (15.4 percent of the executive branch’s general fund budget) at the end of fiscal 2025.
Proposed Budget Highlights
The governor’s supplemental budget for fiscal 2025 includes amounts to cover immediate fire response and recovery needs related to the 2023 Maui wildfires. The budget proposal repurposes state resources to ensure general funds are available to allow continued support for statewide priorities and respond to the impacts of the Maui wildfires. General fund capital improvement projects are requested to be reauthorized as general obligation bond funds to maintain strong reserves and keep the projects on track. Other highlights of the supplemental budget include funding for school food and transportation programs, continued support for the Hawaii Public Housing Authority, improvements across hospitals statewide, and expanded healthcare education and mental health services across the University of Hawaii campuses.
Highlights of the budget proposal include:
Wildfire Recovery
- $200 million revolving fund ceiling increase for the Risk Management Revolving Fund.
- $186.2 million in general funds as a set-aside to ensure that additional funds are available for recovery costs for the 2023 wildfires as they arise.
- 6.00 FTE federal fund temporary positions, $13.4 million in general funds, and $12.8 million in federal funds for emergency management related to the Maui wildfires for the Department of Human Services (DHS).
Statewide Wildfire Mitigation and Response
- $1 million for the Public Utilities Commission (PUC) Special Fund ceiling for consultant contracts for utility dockets.
- $20 million in general funds for wildfire response, recovery, and prevention measures for the Department of Hawaiian Home Lands (DHHL).
- $7.4 million in general funds for fire response and rehabilitation and fuels reduction contracts for the Department of Land and Natural Resources (DLNR) Division of Forestry and Wildlife (DOFAW).
- $10.0 million in general funds for fire and emergency response equipment for DLNR's DOFAW.
- $35.4 million ($2.4 million in G.O. bond funds, $6.6 million in revenue bonds and $26.4 million in federal funds) in the CIP budget for recovery of state facilities and to improve wildfire mitigation capabilities on Maui.
Mental Health
- $74.5 million ($64.7 million in general funds and $9.8 million in federal funds), including $20 million for the Hawaii State Hospital, $10.8 million for Child and Adolescent Mental Health contract increases, and $6.7 million for the Behavioral Health Crisis Center and Supportive Housing services.
- In the CIP budget, $45 million in additional G.O. bond funds for the Consolidated Healthcare Unit at the Hawaii Community Foundation.
Housing
- $22 million in G.O. bond funds for increased construction costs for the Hawaii Public Housing Authority (HPHA) School Street Campus project.
- The conversion of $45 million in operating general funds for teacher housing to G.O. bond funds.
Homelessness
- $1.3 million in general funds for the Homeless Programs Office's homeless services contracts and $400,000 in general funds for a rent supplement program.
Natural Resources
- 3.00 FTE permanent positions and $154,000 in general funds to support the Climate Change Mitigation and Adaptation Commission.