Thursday, March 16, 2017


Includes approximately $2.3 billion for capital improvement projects throughout the state

Honolulu, Hawaii — The full House approved the state budget March 15 with the passage of HB100 HD1, which appropriates funds for both operating and capital improvements costs of the Executive Branch for the current biennium fiscal years FY2017-2018 and FY2018-2019.  For FY2017-2018, the bill provides $7.08 billion in general funds and $13.9 billion in all means of financing.  For FY2018-2019, it appropriates $7.3 billion in general funds and $14.1 billion in all financing means.

The budget also includes a total of nearly $1.9 billion for FY2018 and $926 million for FY2019 for capital improvement projects (CIP) throughout the state.  Of the total CIP funds, $1.1 billion go to CIP projects on Oahu, $376 million to Maui County (including Molokai and Lanai), $361 million for Hawaii Island, and $ 167 million for Kauai.

“This year we have proposed a very practical budget because income estimates for the state are declining,” said House Speaker Joseph M. Souki (Kahakuloa, Waihee, Waiehu, Puuohala, Wailuku, Kahului). “The priority is to meet the budgetary needs of our core programs including education, kupuna care, homelessness, health programs, environmental protection and transportation. This budget accomplishes that goal.”

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.

“General excise tax collections for several months now have been showing zero growth as compared to last year,” said House Finance Chair Sylvia Luke (Makiki, Punchbowl, Nuuanu, Dowsett Highlands, Pacific Heights, Pauoa). “On Monday, the Council on Revenues readjusted downwards the fiscal outlook for the next two years. This budget is the recognition by the committee that this is not the time to create new programs if they are at the expense of preserving our core services.”

Operating Biennium Budget Totals:
FY2018: $7.08 billion General Funds
FY2019: $7.3 billion General Funds
FY2018: $13.9 billion All Means of Financing
FY2019: $14.1 billion All Means of Financing

Operating funding highlights

Department of the Attorney General
·         $110,000 to maintain the Criminal Justice Information System
·         $101,000 to Maintain the Upgraded Automated Fingerprint Identification System
·         $95,000 for the Hawaii Integrated Justice Information Sharing Program

Department of Business, Economic Development, and Tourism
·         $3,000,000 for an Excelerator program in the High Tech Development Corporation
·         $80,000 to promote Hawaii as a destination for films

Department of Budget and Finance
·         $15,001,114 to centralize vacation payout for general funded employees statewide
·         $3,695,200 for upgrades for the Employees’ Retirement System

Department of Defense
·         $360,000 for 10-year motor vehicle replacement plan
·         $80,000 for a Hawaii State Fusion Center director

Department of Education
·         $5,600,000 to expand the Hawaii Keiki Healthy and Ready to Learn Program
·         $2,027,645 to support the Office of Hawaiian Education
·         $1,040,593 and 20 positions to expand pre-K programs in DOE preschools
·         $844,776 and 18 positions to support children struggling with homelessness in the DOE
·         $500,000 to address R&M backlogs in state libraries
·         40 preschool teachers and 20 educational assistants to support special education students in DOE preschools

Department of Human Services
·         $3,000,000 for Rapid Re-Housing program to keep people out of homelessness
·         $3,000,000 for Housing First Program to keep chronically homeless individuals in housing
·         $1,500,000 for homeless outreach
·         $300,000 for homeless shelter maintenance and repair
·         $2,100,000 for low income family and elderly housing facilities
·         $400,000 for services for child victims of sex trafficking

Department of Human Resources Development
·         $3,274,000 for workers’ compensation claims
·         $350,000 for pilot program to improve effectiveness of employees
·         $101,080 for professional development courses for state employees

Department of Health
·         $40,710,951 for various federal grants to support the Disease Outbreak Control Program
§  $24,000,000 for support to local hospitals responding to emergency outbreaks
§  $13,200,000 for immunizations and vaccines for children
§  $3,510,951 for other grants
·         $4,314,600 for a voluntary family planning program grant
·         $4,145,695 for Kupuna Care
·         $3,000,000 as a match for the maternal, infant, and early childhood home visiting grant
·         $1,700,000 for Aging and Disability Resource Centers (ADRC)
·         $1,912,836 to rebase home and community care service subsidies
·         $422,540 for vector control
·         $300,000 to increase the inventory of clean and sober housing
·         $157,168 and 1 program specialist position for the Long Term Care Ombudsman
·         $150,000 for a Statewide Telehealth Pilot project
·         $102,000 for 2 epidemiological specialists to help with surveillance of disease outbreak

Department of Labor
·         $515,386 and 1 position for Disability Compensation Division modernization
·         $205,00 for Community Services Block Grant
·         $41,197 for Commodity Supplemental Food Program Federal Grant

Department of Land and Natural Resources
·         $4,000,000 for Hawaii Invasive Species Council operations
·         $3,405,749 for Native Resources and Fire Protection operations
·         $2,832,996 for Forest Reserve Management and Development operations
·         $500,000 for Bureau of Conveyances to modernize accessibility to records
·         $500,000 to implement an Integrated Information Management System
·         $250,000 for the Ala Wai Watershed Initiative

Department of Transportation
·         $124,400,000 for 10-year replacement plans for motor vehicles, equipment, and ongoing base funding for special maintenance projects
§  $35,500,000 for airports
§  $17,600,000 for harbors
§  $71,300,000 for highways
·         $4,000,000 for highway cleanup services in Department of Transportation
·         $3,000,000 in state matching funds for Airport Rescue and Firefighting vehicles statewide

University of Hawaii System
·         $600,000 and 6 psychologist positions to address mental health concerns of students enrolled in the University of Hawaii System

Capital Improvement Projects (CIP)

Capital Improvement Program Biennium Budget Totals:
FY2018: $784.9 million General Obligation Bond Funds
FY2019: $304.9 million General Obligation Bond Funds
FY2018: $1,997.8 billion All Means of Financing Funds
FY2019: $926.5 million All Means of Financing Funds

CIP highlights

·         $10 million for the development of an agricultural park in Upcountry Maui
·         $3.7 million for improvements to the Waimanalo irrigation system

Accounting and General Services
·         $19 million for Aloha Stadium to meet code, safety, and/or operational requirements
·         $25 million for improvements and maintenance of existing public facilities and sites, statewide.

Business, Economic Development, and Tourism
·         $3 million for an underground utility distribution system on Enterprise Avenue to Midway Road in Kalaeloa
·         $50 million for the Rental Housing Revolving Fund and the Dwelling Unit Revolving Fund to finance additional affordable rental housing

·         $6 million to retrofit buildings with hurricane protective measures to increase the number of emergency shelters, statewide
·         $5 million for incremental addition, replacement, and upgrade of the state Civil Defense warning and communications equipment, statewide

Lump sums of CIP that total over $202 million for school facilities statewide to address equity, school condition, and program support.
·         $13.4 million for a new classroom building at Campbell High School
·         $77 million for the construction of the new East Kapolei Middle School
·         $28.2 million for the construction of the new Pohukaina Elementary School
·         $10 million for health, safety, accessibility, and other code requirements for public libraries, statewide

Hawaiian Home Lands
·         $74 million for lot development, repair, and maintenance of Hawaiian Home Lands

Human Services
·         $2 million for site and dwelling improvements, site utilities, rock fall protection, exterior building repairs, and roof repairs at Puahala Homes
·         $10.7 million for interior and exterior building and site improvements at Hale Po‘ai
·         $1.5 million for rockfall mitigation at Hauiki Homes

·         $1.6 million for improvements and renovations to the Kahuku Medical Center
·         $24.4 million for improvements and renovations to the Hawaii Health Systems Corporation, statewide
·         $4.4 million for improvements to health facilitates, statewide
·         $2.1 million to modernize elevators at Diamond Head, Lanakila, and Leeward Health Centers
·         $4.5 million for re-roofing, interior and exterior improvements to the Hilo Counseling Center and Keawe Health Center

Land and Natural Resources
·         $4.5 million for assessments, maintenance, and remediation of dams under the jurisdiction of the Department of Land and Natural Resources
·         $5 million for dredging and related improvements to the Ala Wai Canal
·         $6 million for rockfall and flood mitigation at various locations, statewide
·         $200,000 for hazardous tree mitigation in forest reserves, game management areas, natural are reserves, and wildlife sanctuaries
·         $800,000 to provide statewide support for fire and natural disaster response
·         $4.5 million for improvements at various boating facilities, statewide
·         $9 million for flood damage reconstruction at the Iao Valley State Monument, Maui

Public Safety
·         $53.5 million for electrical and mechanical infrastructure improvements and rehabilitation of buildings, at Public Safety facilities, statewide
·         $6.7million for a new consolidated women's housing associated support office, and other improvements at the Women's Community Correctional Center (WCCC), Oahu

·         $46.1million for renovations and new restroom facilities at airports statewide
·         $170 million for improvements to the overseas terminal ticket lobby at Honolulu International Airport, Oahu
·         $30 million for improvements at gates 29 and 34 to accommodate A380 Aircraft at Honolulu International Airport, Oahu
·         $8.7 million for a new United States Department of Agriculture (USDA), Agricultural Inspection Station at Kona International Airport, Hawaii
·         $50 million for a Federal Inspection Stations (FIS) at Kona International Airport, Hawaii
·         $39.2 million for holdroom and gate improvements at Kahului Airport, Maui
·         $10.5 million for inbound baggage handling system improvements, Kahului Airport, Maui
·         $7.2 million for terminal improvements at Molokai Airport, Molokai
·         $4.5 million for a new aircraft rescue and fire fighting (ARFF) garage, renovation of the terminal, and replacement of airfield lighting at Kalaupapa Airport, Maui
·         $17.8 million for ticket lobby and holdroom improvements at Lihue Airport, Kauai
·         $6.3 million to address safety needs, optimize energy and operational efficiencies, and provide essential infrastructure to Pier 24-28 at Honolulu Harbor, Oahu
·         $7.5 million to address storm water run-off, erosion, passenger safety issues, ineffective drainage, and/or subsurface irregularities at Nawiliwili Harbor, Kauai
·         $172.7 million for rehabilitation and/or replacement of bridges, statewide
·         $7.5 million for guardrail and shoulder improvements on state highways, statewide
·         $89 million for a new roadway and/or realignment, and extending the Daniel K. Inouye Highway from the Hilo Terminus to the Queen Kaahumanu Highway, Hawaii
·         $25.9 million for improvements and installation of drainage systems on state highways, statewide
·         $50 million for shoreline protection, highway realignment, and beach fill/nourishment for state highways, statewide

University of Hawaii
·         $30 million for the Culinary Institute of the Pacific, Phase II at Kapiolani Community College, Oahu
·         $5 million for renovations at Snyder Hall, University of Hawaii at Manoa, Oahu
·         $15 million for renovations and new facilities at community colleges and neighbor island university campuses, statewide
·         $550,000 for renovations and improvements for University of Hawaii athletics facilities to address Title IX compliances, statewide
·         $1.8 million for replacement and, renovation of fire alarm systems at the University of Hawaii at Manoa, Oahu