Hawaiʻi Senate Votes to Approve Senate Draft of State Budget

The Hawaiʻi State Senate today voted to pass an amended Senate version of HB 200, the state’s operating budget for fiscal years 2021-2022 (FY22) and 2022-2023 (FY23).

Despite an original projected deficit of nearly $2 billion, the Senate unanimously approved the bill, which includes $1.6 billion in federal aid to the State from the American Rescue Plan Act (ARPA) and $15,991,265,341 in general funds for the fiscal biennium beginning July 1, 2021, and ending June 30, 2023.  

“The Senate approached this biennium budget with the intent to exercise fiscal responsibility and restraint, while also making sure that we meet our financial obligations,” said Senator Donovan Dela Cruz (District 22 – Mililani Mauka, Waipi‘o Acres, Wheeler, Wahiawa, Whitmore Village and portion of Poamoho), chair of the Senate Committee on Ways and Means. “In the event that we are faced with another unforeseen economic upheaval, this budget will help ensure that we remain on a firm financial footing.”

The Senate draft of the State budget includes the following highlights:

Department of Agriculture:

• Adds $800,000 to start the Pesticide Disposal Program. 
• Adds $800,000 ceiling increase for Water Infrastructure Loans.
• Adds $600,000 in FY22 and $500,000 in FY23 to pesticide disposal.
• Adds $50,000 for Hemp Licensing Program.

Department of Accounting and General Services:

• Adds 5 permanent positions and $836,550 each year for IT modernization for unemployment insurance system, disability compensation, financial management, child and family welfare, behavioral health, and state employee benefits system.
• Adds $287,000 in FY22 for 2021 reapportionment for the Office of Elections.
• Restores $629,777 in FY22 and $259,554 in FY23 for the Office of Elections Voting System.
• Denies Aloha Stadium request for $2,887,000 in FY22 for operating costs and structural assessment.
• Adds $550,000 in FY22 and FY23 for insurance program for state risk management and insurance administration (using ARPA funds).

Department of the Attorney General:

• Restores $1,800,000 for the Career Criminal and Victim Witness Program to provide 24-hour hotline services and allow medical examinations to be offered on evenings and weekends to ensure the timely collection of evidence.
• Restores $714,000 for the Sex Abuse Treatment Center to provide evening and weekend services to victims. 

Department of Business, Economic Development and Tourism:

• Reduces $27,357,559 in special funds for the Hawaiʻi Tourism Authority (HTA) and changes the means of finance for the remaining $48,140,000 (using ARPA funds).
• Reduces $950,000 for Strategic Marketing and Support.
• Restores $66,231 in FY22 and $132,462 in FY23 for Statewide Land Use Management.

Department of Budget and Finance:

• Pay the Annual Required Contribution (ARC)/Other Post-Employment Benefits (OPEB) prefunding of $378,368,000 in FY22 and $338,079,000 in FY23. 
• Adds $160,020,792 in FY22 and $153,659,250 in FY23 for payment of working capital (using ARPA funds).
• Adds $93,248,158 in FY22 and $122,625,227 in FY23 for debt service.
• Adds $24,700,000 for health premium payments.
• Adds $720,000 in FY22 and $240,000 in FY23 for ʻIolani Palace (using ARPA funds).
• Restores $626,000 subsidy to Bishop Museum (using ARPA funds).
• Reduces $9,076,579 each year for retirement benefits.

Department of Commerce and Consumer Affairs:

• Increases ceiling by $700,000 in FY22 and $1,050,000 in FY23 for King Kalakaua Building repairs and maintenance.
• Increases ceiling by $125,000 for server for data integration across divisions and departments.

Department of Defense:

• Adds $329,096 for 7 temporary positions for the Lava Project.
• Restores 40.75 temporary positions and $2,939,511 for the Hilo Youth Challenge Academy.
• Restores 3 permanent positions for the Kāneʻohe Burial Team.

Department of Education:

• Eliminates the Office of Strategy, Innovation and Performance and the Office of Information Technology Services to decentralize administrative support services to Complex areas. 

• Adds $5,124,000 in FY23 for repairs and maintenance.
• Adds $5,000,000 for overtime for teachers to provide tutoring.
• Adds $5,000,000 for teacher rental subsidy.
• Adds $4,431,663 to restore defunded position from Act 9 (2020) for Special Education.
• Adds $2,641,925 and 3 permanent positions for Charter Schools Commission and Administration.
• Adds $1,000,000 for the Farm-to-School Program expansion.
• Adds $1,000,000 in FY23 for School Facilities Agency.
• Adds $249,239 for Early Learning Teachers.
• Adds $400,000 for trauma-informed care services statewide.
• Add $250,000 in FY22 for proof-of-concept High Core Program.
• Add $39,719,565 in FY22 and $47,719,5665 in FY23 to fully restore and supplement for Indexed Complex Area Allocation.
• Adds $26,030,517 to partially restore defunded positions from Act 9 (2020) for the Weighted Student Formula.
• Add $3,000,000 for Alternative Learning Centers.
• Restores $17,890,819 and 10 permanent and 2 temporary positions from program review reductions for School Support.
• Restores $14,417,942 from program review reductions for Charter Schools.
• Restores $11,226,819 from program review reductions for Weighted Student Formula.
• Restores $6,352,023 and 2 permanent and 4 temporary positions from program review reductions for Instructional Support.
• Restores $5,239,467 and 16.5 permanent and 1 temporary positions from program review reductions for State Administration.
• Restores $3,545,809 in FY22 and $3,565,809 in FY23 from program review reductions for Public Libraries.
• Restores $315,883 from program review for special education.

Office of the Governor

• Adds $53,000 in FY22 for the 175th Washington Place Anniversary.

Department of Hawaiian Home Lands:

• Adds $7,000,000 ceiling increase for NAHASDA Federal Funds – planning and development for Hawaiian Homesteads.

Department of Human Services:

• Adds $5,400,000 in FY22 for General Assistance payments to maintain $388 a month payment for 6,675 individuals (using ARPA funds). 
• Adds $750,000 in FY22 and FY23 for State Rent Supplement Vouchers that provide up to $500 a month to cover rental costs for 280 households (using ARPA funds).
• Increase federal fund ceiling by $16,433,850 in FY22 and $16,429,850 in FY23 for rental assistance services.
• Adds $12,374,692 in FY22 and $34,069,588 in FY23 for Medicaid payments.
• Adds $10,800,000 each year for Homeless Services (using ARPA funds).
• Restores $6,333,798 for TANF Client Services Contracts.
• Restores $832,000 in FY22 and FY23 for In-Community Youth Programs and contract services(using ARPA funds).
• Restores $520,000 in FY22 and FY23 for mental health services at Hawaiʻi Youth Correctional Facility (using ARPA funds). 
• Restores $134,000 in FY22 and $1,137,000 in FY23 for KOLEA maintenance and operations (using ARPA funds).

Department of Human Resource Development:

• Adds $257,775 in FY22 and $526,250 in FY23 for Worker’s Compensation Claims.
• Adds $225,000 in FY22 for Unemployment Insurance Benefits for State employees.

Department of Health:

• Adds $7,300,000 to the general fund for Tobacco Prevention Programs.
• Adds $35,906,000 for Hawaiʻi Healthcare Systems Corporations operation subsidy (using ARPA funds).
• Adds $6,180,433 in FY22 for Hawaiʻi State Hospitals operation subsidy (using ARPA funds).
• Adds $11,585,000 for Maui Health Systems operating subsidy (using ARPA funds).
• Provides $10,486,266 to staff the new forensic building at the Hawaiʻi State Hospital (using ARPA funds).
• Adds $9,887,137 for Emergency Medical Services (using ARPA funds).
• Restores $2,687,824 in funding for Kūpuna Care and the Aging Disability Resource Center.
• Restores 4 permanent positions and $152,856 to preserve the Office of Language Access. 
• Merger of Food Safety and Drug Branch to Food Safety Branch.

Department of Labor and Industrial Relations:

• Adds $312,445,695 in FY22 and $407,554,305 in FY23 for the new Unemployment Insurance loan (using ARPA funds).
• Adds $431,937 in FY22 and FY23 for the Disability Compensation Program’s technology modernization maintenance (using ARPA funds).
• Adds $70,000,000 in FY22 and $35,000,000 in FY23 for the new Unemployment Insurance call center.
• Adds $13,153,920 for FY22 and $10,000,000 in FY23 for the Unemployment Insurance Interest Payable.
• Restores $1,043,780, 1 permanent position and 4 temporary positions for the Office of Community Services.
• Restores $315,242 and 6 permanent positions for the Civil Rights Commission.

Department of Land and Natural Resources:

• Adds $2,231,420 and 33 permanent Enforcement Officers, 6 permanent Administrative Support positions and 2 permanent Education and Program Specialists for Conservation and Resource Enforcement. 
• Adds $1,459,440 and 30 previously defunded positions for Conservation and Resources Enforcement.
• Adds $875,000 for FY22 for Rapid ʻŌhiʻa Death response.
• Adds $480,000 for lifeguard contracts for Kua Bay.
• Restores $3,110,946 for the Native Resources and Fire Protection Program.
• Restores $868,106 for lifeguard contracts for Hāpuna Beach.

Department of Public Safety:

• Adds $330,000 for the Hawaiʻi Correctional System Oversight Commission.
• Adds $676,222 in FY22 for the Crime Victim Compensation Program. The commission assists violent crime victims with funds to pay for medical costs, counseling costs, lost wages and funeral expenses not covered by other sources.

Department of Taxation:

• Adds $3,033,832 for maintenance of the Tax System Modernization.
• Adds $227,500 for FY22 and $22,500FY23 for the Tax Review Commission.
• Restores 8 permanent positions and $196,686 in FY22 and $393,372 in FY23 for the Kauaʻi Compliance District Office.

Department of Transportation:

• Adds $35,000,000 in FY22 and $49,000,000 in FY23 for Highways Special Maintenance.
• Adds $1,150,440 in special funds to Daniel K. Inouye International Airport.

University of Hawaiʻi:

• Adds $3,000,000 for UH Cancer Center.
• Adds 2 permanent positions and $164,394 for computer science pathways through Early College.
• Adds $2,600,000 for UH Mānoa Athletics and $400,000 for UH Hilo Athletics.
• Adds $1,300,000 for the Hawaiʻi Promise Program.

To minimize impact to university and community college students, faculty and staff, the Senate draft:

• Adds $15,600,000 in FY22 and $3,533,247 in FY23 and $12,880,000 in FY22 and $16,946,753 in FY23 in general funds for UH Mānoa to restore program review reductions (using ARPA funds).
• Adds $4,560,000 for UH Hilo, $2,160,000 for UH West Oʻahu, and $2,400,000 for JABSOM in FY22 only (using ARPA funds).
• Adds $23,000,000 in FY22 and FY23 from program review reductions for the UH Community Colleges.

HB 200, HD1, SD1 has been transmitted back to the House for consideration.