Friday, March 20, 2015

House sends proposed FY16-FY17 budget to Senate

The full House today approved the state budget with the passage of HB500, HD1, which appropriates funds for both operating and capital improvements costs of the Executive Branch for the current biennium fiscal years FY2015-2016 and FY2016-2017. For FY2015-2016, the bill provides $6.5 billion in general funds and $12.7 billion in all means of financing. For FY2016-2017, it appropriates $6.8 billion in general funds and $13.1 billion in all financing means.

The budget also includes a total of nearly $1.474 billion for FY2016 and $755.3 million for FY2017 for capital improvement projects (CIP) throughout the state. Of the total CIP funds, $689.9 million go to CIP projects on Oahu, $165.1 million to Maui County (including Molokai and Lanai), $201.7 million for Hawaii Island, and $60.57 million for Kauai.

"While the state’s economy seems to be trending upward, we will continue our cautious approach to budgeting, even as we take care of our long-term unfunded liabilities and important CIP projects," said House Speaker Joseph M. Souki (Kahakuloa, Waihee, Waiehu, Puuohala, Wailuku, Kahului).

The state budget consists of two major funding allocations: Capital Improvement Projects funding (CIP) is money earmarked to build and maintain the state’s physical infrastructure; operating funds are monies used to actually run or operate state programs and services.

“Whether we’re talking about CIP or operating funds, our mindset in the House remains the same: to spend within our means as a matter of consistent practice,” said House Finance Chair

Sylvia Luke (Makiki, Punchbowl, Nuuanu, Dowsett Highlands, Pacific Heights, Pauoa).

“In the case of capital expenditures, we also need to consider that the money we use today on much needed repairs and maintenance—and in some cases to build a new facility—can in the long run save us money. Like our unfunded liabilities, delaying spending would be akin to kicking the proverbial can down the road. How we balance the needs of today and tomorrow defines wise spending.”

Operating Biennium Budget Totals:
FY2016: $6.5 billion General Funds
FY2017: $6.8 billion General Funds
FY2016: $12.7 billion All Means of Financing
FY2017: $13.1 billion All Means of Financing

Funding highlights include:

Office of the Governor
  • $400,000 to create the Office of Grant Maximization to pursue federal grants for the State
  • $252,000 to fund administrative costs, including the Western Governors’ Association Membership
Office of the Lt. Governor
  • $60,000 in FY 2016 for the Commissioner of Deeds program
  • $50,000 for protocol, travel, and other administrative expenses
  • $100,000 for the Office of Information Practices to assist with Information Technology issues
University of Hawaii
  • Consolidated the University of Hawaii general fund budget by transferring $369,112,604 currently budgeted at all campuses to UOH 900, UH System-wide Support; to be distributed according to Board of Regents and system wide policies and priorities
Department of Education
  • $2,401,808 for the Weighted Student Formula to be distributed to schools statewide
  • $1,000,000 in FY2016 to support student travel to academic and arts national competitions
  • $3,837,935 to support teacher recruitment and retention in hard to fill locations in the DOE and Charter Schools
  • Transferred $62,053,049 in FY2017 from School Support to School Based Budgeting for school level utility costs to allow principals to utilize utility savings in their schools  $2,929,146 in FY2016 and $2,496,292 in FY2017 to cover the Food Service program shortfall
  • $29,000 for the Hawaii State Public Library System for the replacement of a logistics support services van
  • $375,000 for the Hawaii State Public Library System to purchase new books and materials
  • Created a new Program ID for the State Charter School Commission to separate the budget of the Commission from the charter schools per pupil allocation
  • $5,963,625 in FY2016 and $5,586,689 in FY2017 for charter school per pupil funding
Department of Agriculture
  • $220,812 and 4 positions for the Pesticides Branch for pesticides enforcement on Oahu, Maui and Kauai
  • $200,000 in FY 2016 and $50,000 in FY 2017 for upgrades and maintenance of Animal Quarantine computer systems
Department of Accounting and General Services
  • $3,000,000 in FY2016 and $3,500,000 in FY2017 to improve the stability of the State's Information Technology infrastructure
  • $61,530 in FY2016 and FY2017 to restore the salary for the Deputy Comptroller
Department of the Attorney General
  • $500,000 which will enable the Department of the Attorney General to fill up to nine vacant positions
  • $176,336 of federal funds in FY2016 and $170,336 in FY2017 for two additional investigators for the Sex Offender Program
  • $300,000 in FY2016 for Statewide Sexual Assault Services
  • $169,508 for two positions to support the Hawaii Integrated Justice Information Sharing Program
Department of Business, Economic Development, and Tourism 
Allocations include funding to foster economic international relations and establishment of the Hawaii Green Infrastructure Authority.
  • $250,000 to support the Beijing and Taipei state offices
  • $200,000 in FY2016 for fostering sister-state relationships
  • $1,000,000 for the operations of the Hawaii Green Infrastructure Authority
Department of Defense
  • $95,000 for the Office of Homeland Security
  • $139,931 to support the Hawaii Army National Guard facilities at Kalaeloa
  • $820,483 in FY2016 and $1,210,489 in FY2017 to support the Hawaii Air National Guard facilities at the Joint Base Pearl Harbor Hickam
  • $1,944,720 in FY2016 for the Veteran’s Cemetery for storm drain and walkway repairs, and the purchase of various pieces of heavy equipment
Department of Human Services
  • $2,600,000 to maintain the current general assistance monthly payment level at $349
  • $1,500,000 in general funds for FY2016 to continue the Housing First Program pilot program
  • $3,878,000 to support Temporary Assistance to Needy Families work programs and contracted services
Department of Human Resources Development
  • $200,000 in general funds for an in-service training and program effectiveness project for state employees
Department of Health
  • $7,723,002 to maintain the current level of ambulance services statewide
  • $2,997,000 for the Hawaii State Hospital to address budget shortfalls due to high patient counts
  • $635,000 for cost increases at intermediate care facilities for those with intellectual disabilities
  • Approved a reorganization of the Child and Adolescent Mental Health program to enable the program to provide better services to clients
  • Approved a reorganization for the community mental health centers in order to promote uniform quality of care statewide
Department of Labor and Industrial Relations
  • $121,122 in FY 2016 and $123,752 in FY 2017 to enhance operations of the Hawai‘i Occupational Safety and Health Program
  • $54,823 in FY 2016 and $51,289 in FY 2017 for 1 position in the Disability Compensation Division
  • $170,122 in FY 2016 and $175,513 in FY 2017 to fund nine Information Technology specialists
Department of Land and Natural Resources
  • $75,000 for a State Sustainability Coordinator
  • $65,000 for a Co-Manager of the Papahānaumokuākea Marine National Monument
  • $529,543 in FY 2016 and $513,193 in FY 2017 for 5 positions and equipment for the State Historic Preservation Division to address backlogs as prescribed by the National Park Service corrective action plan
  • $250,000 in FY 2016 and $500,000 in FY 2017 for the digitization of microfilm archives in the Bureau of Conveyances
  • $1,000,000 for the State Parks Division for repairs and maintenance of facilities
  • Approved the reorganization of the Aquatic Resources Division to replace an outdated fisheries management-based structure with an ecosystem management-based one
Department of Public Safety
  • $18,000 for body armor for Deputy Sheriffs across the state
Department of Taxation
  • $250,000 for research studies and operations of the Tax Review Commission
Department of Transportation
  • $36,695,000 in FY 2016 and $35,401,000 in FY 2017 to address special maintenance projects at the airports, statewide. This includes runway re-pavement, terminal renovations, interior upgrades, bathroom restorations, replacement fire alarms, and building repairs
  • $13,560,000 in FY 2016 and FY 2017 for special maintenance repairs to the Harbors; including structural pier repairs and pavement repairs
  • $921,000 to maintain zipper lane operations
  • $70,943,000 in FY 2016 and FY 2017 for highway road repair and maintenance projects, statewide

Capital Improvement Projects (CIP)

“The CIP budget addresses the most basic necessities for our schools, infrastructure and state facilities," said House Majority Leader Scott Saiki (McCully, Kaheka, Kakaako, Downtown). “The CIP funds are more than just about buildings and roads, but are critical to the services and support we provide to the people of Hawaii.”

Capital Improvement Program Biennium Budget Totals:
FY2016: $590.8 million General Obligation Bond Funds
FY2017: $255.9 million General Obligation Bond Funds
FY2016: $883.3 million All Means of Financing Funds
FY2017: $499.4 million All Means of Financing Funds

CIP highlights 
  • $1.2 million for the design and construction of the Molokai irrigation system
  • $2.35 million for the plans, design and construction for the Kamuela vacuum cooling plant
Accounting and General Services
  • A total of $24 million for the maintenance of existing public facilities and sites
Business, Economic Development, and Tourism  
  • $50 million to the Rental Housing Trust Fund to finance additional affordable rental housing statewide  
  • A total of $1.52 million for the addition, replacement and upgrade of state civil defense warning and communications equipment
  • $10.682 million total for upgrades to the National Guard facilities to meet current standards
  • $1.5 million for improving hurricane protection for public buildings and increasing the number of public shelters statewide
  • $62.813 million for the construction of a new veterans long term care facility in Oahu
A lump sum CIP total of over $263 million for school facilities statewide, including design, construction, improvements and equipment purchases.
  • $350,000 for the design and construction of a locker room and covered play court at Anuenue Hawaiian Immersion School
  • $4.117 million for the expansion of the cafeteria at Castle High School
  • $4.6 million for electrical upgrades and the installation of A/C at Ewa Beach Elementary School
  • $780,000 for electrical upgrades for Buildings C and D at Ewa Elementary School
  • $10 million for the modernization of the Farrington High School campus  $2 million for the first phase of renovations at Hilo Intermediate School
  • $1 million for the construction of bleachers at Honokaa High School
  • $1.4 million for the design of a performing arts and media center at Kailua High School
  • $3.5 million for the construction of a multipurpose athletic facility at Kalani High School
Hawaiian Homelands 
  • $40 million for plans, design and construction for various Hawaiian homestead projects and improvements statewide
  • $1.2 million for the plans and design of a new hospital in Kona
  • $32 million for Hawaii Health System Corporation hospitals for repair and maintenance, upgrades and improvements
  • $55 million to continue funding for construction of the Kona Judiciary Complex
Land and Natural Resources
  • $7 million total for the Waikiki beach maintenance
  • $6 million for rockfall and flood mitigation statewide
  • $1 million for Pu’u Wa’awa’a structure improvements and dam compliance
  • $1.675 million to provide statewide support for fire and natural disaster response
  • $2 million for the wildlife watershed initiative
  • $5.875 million in lump sum improvement at boating and ocean recreation facilities statewide
  • $5 million for the construction of a Central Maui regional park
  • $3.5 million total for improvements at state parks
  • $500,000 for the design of an education and visitor center for the Kahoolawe Island Reserve Commission
Public Safety
  • A total of $21 million for various renovations and other capital improvements to buildings and infrastructure
  • $21 million for improvements at Kahului Harbor
  • $14.58 million for compliance improvements for a new Aircraft Rescue and Fire Fighting station at Hana Airport
  • $9 million for the construction of a new Aircraft Rescue Fire Fighting station at Kalaupapa Airport
  • $1.5 million for airport road and parking lot improvements at Lanai Airport
  • $3.2 million for Molokai Airport runway improvements
  • $17 million for commercial harbor facility improvements statewide
  • $15 million for the repair and maintenance of feeder roads and alternate routes for Highway 130 on Hawaii Island
  • $8.5 million for the realignment of Honoapiilani Highway from Maalaea to Launiupuko on Maui
  • A total of $9.495 million for various improvements to Hana Highway including rockfall mitigation and roadway widening
  • $2.3 million for bikeway improvements at various locations statewide

University of Hawaii
  • A total of $51 million statewide for minor capital improvements program projects
  • $25 million for a new food innovation building at Maui Community College

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