Supplemental Proposed Budget - Fiscal Year 2027
During the 2025 legislative session, Hawaii enacted a biennial budget for fiscal 2026 and fiscal 2027. On December 22, 2025, Hawaii Governor Josh Green released a supplemental budget proposal for the current biennium. Under the governor’s revised operating budget recommendation, total spending in fiscal 2027 would be $20.4 billion, a $646.3 million increase from enacted fiscal 2027 levels, and a 3.2 percent increase from recommended fiscal 2026 levels. The budget recommends general fund spending of $10.59 billion in fiscal 2027, a $1.6 million decrease from enacted fiscal 2027 levels, and a 2.0 percent increase from recommended fiscal 2026 levels. The supplemental also proposes to add $903 million in general obligation bonds for fiscal 2027, for a total general fund bond appropriation of $1.32 billion for fiscal 2027. Total revenues are estimated at $10.59 billion in fiscal 2027, a 3.4 percent decrease from projected fiscal 2026 levels, while tax revenues are estimated at $9.70 billion in fiscal 2027, a 2.0 percent increase from fiscal 2026 projections. The proposal calls for a general fund ending balance of $1.13 billion, or 10.3 percent of prior year revenues, and a balance in the Emergency and Budget Reserve Fund (EBRF) of $1.68 billion, or 15.3 percent of prior year revenues.
Proposed Budget Highlights
The governor’s supplemental budget proposal is focused on the administration’s core priorities of improving healthcare outcomes and access, reducing homelessness, building affordable housing, investing in climate resiliency, strengthening the economy, and reducing the cost of living. The budget includes record investments in infrastructure, construction, housing, and healthcare access while also preparing for anticipated federal changes. The supplemental budget proposal recommends additional funding in a series of areas, including:
Healthcare
- General funds for Hawaii State Hospital psychiatric beds and to support critical staffing for overtime, to strengthen mental health services statewide.
- General obligation bond funds for West Hawaii Medical Office on Hawaii Island to strengthen its healthcare capacity and improve services for residents.
- Both general funds and federal funds for Medicaid technology upgrades to meet new federal requirements, ensuring residents maintain affordable coverage.
- Both general funds and federal funds for the Medicaid program to maintain access to care.
- General funds for aeromedical transport services to provide rapid, specialized medical care for residents.
Food Security
- General funds to continue administering the Supplemental Nutrition Assistance Program (SNAP), providing direct food relief to families statewide.
Homelessness
- General funds to expand kauhale (communal living spaces) programs across the islands, providing shelter and pathways to permanent housing.
Climate Resiliency
- First‑year implementation of the Governor’s Green Fee, a dedicated funding source for environmental stewardship, hazard resilience and sustainable tourism.
- Budget placeholders will be refined during the legislative session based on recommendations from the Green Fee Advisory Committee, which represents a broad range of community stakeholders.