Senate Committee Unveils A Streamlined State Budget

Just before announcing highlights from the latest draft of the state budget, Ways and Means Chairwoman Jill Tokuda remarked to a packed committee room at the Capitol, “Everyone’s so quiet in here.”

The audience of department and agency heads laughed, but they were quiet for a reason: Tokuda was going to let them know how much they might get for their respective operations over the next two years.

The proposed budget, which awaits a full Senate vote and likely more tinkering by House and Senate legislators, is $114 million less in general funds for the next two fiscal years than what Gov. David Ige proposed back in December.

Senate Ways and Means Chairwoman Jill Tokuda said Wednesday her committee had to make tough calls in order to balance the state’s financial priorities.

Chad Blair/Civil Beat

That meant Tokuda’s team had to find places to cut, but some spending was added, too.

Tokuda and other Senate leaders believe they have a budget proposal that continues to pay for recurring programs and social services while also directing nearly $1 billion toward infrastructure and facility projects across the state.

Other funding needs will be addressed through separate bills, Tokuda said.

‘Digging Deep’

Two weeks ago, the House of Representatives approved a budget that totaled $28 billion for the next two fiscal years. Like Tokuda, House Finance Chairwoman Sylvia Luke stressed the need to be conservative with the state’s finances.

The Senate’s version emphasizes spending on education, the environment, homelessness and health care.

“What we’re presenting is a balanced approach to ensure funding for priority community needs while appropriating funds for increasing costs in retirement benefits and other fixed costs,” Tokuda said in a statement Wednesday after her committee voted unanimously to approve the budget.

She continued: “This is the result of digging deep into the base budgets of each state department and thoroughly examining how to make cuts without impacting the basic, essential needs of our community: keeping the lights on in our schools, provide housing, protecting our natural resources, and ensuring health care services are available to keiki and kupuna.”

For example, $3 million in general funds each fiscal year would go to the Housing First Program, and $2.1 million would help pay for the operation of the State Family and Elderly Housing Facility.

The Department of Education would get an additional $52.1 million in the fiscal year that begins July 1 and $57.2 million the following July 1.

And $7.8 million would be allocated for Kupuna Care, $600,000 would help family caregivers and $1.7 million would be appropriated for the Aging and Disability Resource Center.

The budget also includes $35 million to address a backlog of repairs and to build new units for senior housing.

“While there are programs and areas that we would like to have funded but are unable to because of fiscal constraints, the Senate budget is at least able to address the basic needs of our most vulnerable citizens,” Senate President Ron Kouchi said in a statement late Wednesday.

Operating Fund Highlights

Department of Agriculture

Add two positions and $226,134 in FY18 and three positions and $200,000 in FY19 in general funds for the Agricultural Food Safety Certification Program
Add $750,000 in general funds in each FY for pesticide regulation expenses and studies
Add three permanent positions and $79,236 in FY18 and $158,472 in FY19 in general funds for pesticides compliance

Department of Accounting and General Services

Add $2,185,567 in FY18 and $2,210,913 in FY19 in general funds for New Payroll System and Time and Attendance System
Add $937,024 in FY18 and $922,326 in FY19 in general funds for integration of Human Resources System with Payroll and Time and Attendance System
Add $3,175,000 in general funds in each FY for Carrier Circuit and Collocation Costs for the Office of Enterprise Technology Services
Change means of financing for five permanent positions and $505,585 from trust funds to general funds in each FY for Campaign Spending Commission

Department of the Attorney General

Add $38,000 in general funds in each FY for Criminal Justice Division Rent, Family Law Division Rent, Tax and Charities Division Rent
Add $110,000 in general funds in each FY for Criminal Justice Information Systems Hawaii software licenses/renewals for the State Criminal Justice Information and ID Program
Add one position and $50,000 in general funds in each FY for Police Review Board

Department of Business, Economic Development and Tourism

Add one permanent position and $25,386 in FY18 and $50,772 in FY19 in general funds for compliance with decisions and orders of Land Use Commission
Add one temporary position and $27,618 in FY18 and $55,236 in FY19 in general funds for Special Action Team on Affordable Rental Housing
Add one permanent position and $29,868 in FY18 and $59,736 in FY19 in general funds for Transit-Oriented Development Projects and Interagency Transit-Oriented Development Council/Support
Add one temporary position and $23,750 in FY18 and $47,500 in FY19 in special funds for Chief Operating Officer/Industry Specialist for Hi Technology Development Corporation
Add one temporary position and $16,250 in FY18 and $32,500 in FY19 in special funds for Special Projects Coordinator for Hi Technology Development Corporation

Department of Budget and Finance

Add $30,637,298 in general funds in FY18 for severance pay and social security and Medicare payments for employees to be separated from state employment due to the upcoming transfer of the Hawaii Health Systems Corporation’s (HHSC) Maui Region to Kaiser Permanente management
Add $4,493,450 in general funds in each FY for Centralized Vacation Payout for various departments
Add $34,625,428 in FY18 and $70,673,178 in FY19 in general funds for additional retirement benefit payments funding for the State to reflect phase-in of employer contribution rate increases.
Add one permanent position and $2,018,171 in FY18 and $107,552 in FY19 in other funds for Hawaii Domestic Relations Orders Implementation for the Employee Retirement System

Department of Commerce and Consumer Affairs

Add one staff attorney and $68,145 in FY18 and $130,180 in FY19 in special funds for unfair and deceptive trade practices enforcement for Office of Consumer Protection
Add $200,000 in special funds in FY18 for consultant services and training
Add $303,949 in special funds in FY18 for other current expenditures for Public Utilities Commission equipment, renovation, and moving costs

Department of Defense

Add $90,000 in general funds in each FY for State Active Duty continuing operations
Add $768,000 in FY18 and $464,000 in FY19 in general funds for tree trimming and removal at Hawaii State Veterans Cemetery
Add one permanent position and $50,772 in each FY for Veteran Services Counselor

Department of Education

Add $1,000,000 in general funds in each FY for Early College High School Initiative
Add $2,800,000 in general funds and $2,800,000 in federal funds in each FY for Hawaii Keiki Program
Add two permanent positions and $91,909 in FY18 and $183,818 in FY19 in general funds for School Based Behavioral Health Services for Maui and Hawaii Island
Add two permanent positions and $183,818 in general funds in each FY for Hawaii Teachers Standards Board
Add 15 permanent positions and $779,310 in FY18 and $1,434,885 in FY19 in general funds for Civil Rights Compliance Capacity
Add $1,100,000 in general funds in each FY for Student Information System Enhancement and Expansion
Add $670,000 in general funds in each FY for Alternative Teacher Route Programs
Add $2,500,000 in FY18 and $4,000,000 in FY19 in general funds for School Service and Maintenance
Add $1,500,000 in general funds in each FY for Utilities
Add four permanent positions and $1,755,525 in FY18 and $3,711,835 in FY19 in general funds for Student Transportation Services Statewide

Public Libraries

Add six and a half permanent positions and $50,799 in FY18 and $203,196 in FY19 in general funds for Nanakuli Public Library
Add one permanent position and $23,466 in FY18 and $46,932 in FY19 in general funds for Office of the State Librarian
Add $250,000 in general funds in each FY for Repair and Maintenance Backlog

Charter Schools

Add $9,651,776 in FY18 and $9,944,866 in FY19 in general funds for Per Pupil Adjustment

Early Learning

Add 10 permanent positions and $136,688 in FY18 and $556,842 in FY19 in general funds for Pre-Kindergarten and Induction Program
Add two permanent positions and $53,733 in FY18 and $82,317 in FY19 in general funds for Executive Office on Early Learning

Office of the Governor

Add $117,167 in general funds in each FY for membership fees for national and regional chief executive organizations

Department of Hawaiian Home Lands

Add $6,865,887 in general funds in each FY for fringe benefits for general funded positions

Department of Human Services

Add $2,100,000 in general funds in each FY for operation of State Family and Elderly Housing Facility
Add $3,000,000 in general funds in each FY for Housing First Program
Add $1,500,000 in general funds in each FY for homeless outreach services
Add $3,000,000 in general funds in FY18 for Rapid Re-Housing Program
Add $300,000 in general funds and $100,000 in federal funds in each FY for services for child victims of sex trafficking
Add $4,558,858 in general funds and $2,454,770 in federal funds in FY18 and $4,634,292 in general funds and $2,495,388 in federal funds in FY19 for settlement for foster care board rates
Add $2,500,000 in general funds and $7,056,720 in federal funds in FY18 and $5,000,000 in general funds and $14,113,440 in federal funds in FY19 for adult dental benefits
Add $1,886,205 in general funds and $2,309,090 in federal funds in FY18 and $4,052,472 in general funds and $4,961,033 in federal funds in FY19 for nursing facility inflation factor
Add $2,947,556 in general funds and $2,691,040 in federal funds in each FY for Medicare Part B Premiums
Transfer $500,000 in general funds in each FY from Office of Youth Services to School Community Services for Resources for Enrichment, Athletics, Culture, and Health Program

Department of Human Resource Development

Add $2,396,000 in general funds in FY18 for worker’s compensation claims

Department of Health

Add two temporary positions and $144,054 in FY18 and $208,143 in FY19 in special funds for Medical Marijuana Registry Program
Add five temporary positions and $890,000 in non-recurring special funds in each FY for medical marijuana dispensary licensing program
Add $6,507,305 in general funds in each FY for base budget funding of Chronic Disease Prevention and Health Promotion Administration, Primary Prevention, and Chronic Disease Management per funding in Act 118, SLH 2015
Add $500,000 in general funds in each FY for services for homeless individuals with serious and persistent mental health challenges
Add $800,000 in general funds in each FY for outreach and counseling services for chronically homeless individuals and families with severe substance abuse disorders
Add $300,000 in general funds in each FY for clean and sober housing for chronically homeless individuals with severe substance use disorders
Add $1,340,000 in FY18 and $1,613,000 in FY19 in general funds for purchase of service contracts for Child and Adolescent Mental Health
Add $2,754,980 in FY18 and $7,118,914 in FY19 in general funds for rebased provider payment rates for Development Disabilities
Add $3,000,000 in general funds in each FY for maintenance of effort for Healthy Start
Add $799,833 in FY18 and $742,034 in FY19 in general funds for statewide emergency ambulance services
Add one permanent position and $60,629 in FY18 and $121,259 in FY19 in general funds for investigation of suspected health clusters from environmental sources
Add $3,976,435 in general funds in each FY for Kupuna Care
Add $1,700,000 in general funds in each FY for Aging and Disability Resource Center
Add $600,000 in general funds in FY18 for Kupuna Caregiver Program
Add $150,000 in general funds in each FY for purchase of services contract for statewide telehealth pilot project
Transfer $942,000 in general funds in each FY as subsidy to Wahiawa General Hospital to Subsidies

Hawaii Health Systems Corporation

Add $300,000 in general funds in each FY for operations subsidy for Kahuku Hospital
Add $36,486,000 in FY18 and $34,686,000 in FY19 in general funds for operations subsidy for the regions
Add $5,000,000 in general funds in FY18 for Hawaii Health Systems Corporation – Regions or Maui Health System, a Kaiser Foundation Hospital LLC.
Add $33,420,000 in general funds in each FY for operations subsidy for Maui Health System

Department of Labor and Industrial Relations

Add one permanent position and $19,746 in FY18 and $39,492 in FY19 in general funds for Legal Support
Add one permanent position and $515,386 in FY18 and $2,810,772 in FY19 in general funds for Disability Compensation Division Modernization

Department of Land and Natural Resources

Add $14,047,588 in general funds in each FY for various programs’ base budgets per funding in Act 84, SLH 2015
Add $2,228,250 in special funds in FY18 for re-appropriation of lapsed Land Conservation funds
Add $1,700,000 in special funds in each FY for increased Conveyance Tax revenues for Land Conservation Fund
Add $4,000,000 in general funds in FY18 for Hawaii Invasive Species Council
Add $750,000 in general funds in each FY for Rapid Ohia Death Response
Add $400,000 in general funds in each FY for Fire Protection Program
Add $250,000 in general funds in each FY for protection of watershed forests
Add 15 permanent positions and $1,065,147 in FY18 and $1,097,047 in FY19 in general funds for personnel and operating funds for management and restoration of Kahoolawe Island Reserve

Department of Public Safety

Add $165,000 in general funds in each FY for Malpractice Insurance. Add $3,334,801 in general funds in FY18 for Housing Inmates in Non-State Facility during Renovation of Halawa Correctional Facility
Add $1,500,000 in general funds in FY18 for Lease Rent for Department of Public Safety Administration Building and Moving Costs

Department of Taxation

Add $59,000 in general funds in each FY for Medical Marijuana Tax Collections

Department of Transportation

Add seven permanent positions and $157,939 in FY18 and $303,878 in FY19 for Airside Operations Section Security Unit Pass and Identification Office
Reduce $123,787 in FY19 for contracted employees in the Pass and Identification Office. Similar adjustments were made for other airports’ Pass and ID Offices.
Add six permanent positions and $162,752 in FY18 and $293,004 in FY19 for Federal Inspection Station
Add 10 permanent positions and $679,152 in special funds in FY18 and $1,243,998 in special funds and $216,000 in federal funds in FY19 for Intelligent Technology Systems Branch
Reduce 32 positions and $1,461,444 in special funds in both FY for long-standing and lower priority vacancies on Oahu in various Highways programs.
Add $3,514,950 in FY18 and $1,242,000 in FY19 in special funds for information technology projects.

University of Hawaii

Add four permanent positions and $3,000,000 in general funds in each FY for Cancer Center clinical trials and operational support
Add $350,000 in general funds in each FY for Concussion Awareness
Add $1,829,000 in general funds in each FY for Hawaii Promise Program
Add four permanent positions and $820,000 in general funds in each FY for Title IX program for the Community Colleges
Add three permanent positions and $470,000 in general funds in each FY for Title IX program for UH System-wide Support

Capital Improvement Project Highlights