To kick-off our spring campaign, all donations will be matched up to $10,000 thanks to a generous gift from the Ninneweb Foundation. 

Double my donation

Help us raise $100,000 from 250+ donors!

To kick-off our spring campaign, all donations will be matched up to $10,000 thanks to a generous gift from the Ninneweb Foundation. 

Double my donation

Help us raise $100,000 from 250+ donors!

Kevin Fujii/Civil Beat/2024

About the Author

Chad Blair

Chad Blair is the politics editor for Civil Beat. You can reach him by email at cblair@civilbeat.org or follow him on X at @chadblairCB.


The cuts by Hawaiʻi budget writers come as the University of Hawaiʻi faces major reductions in federal funds as well. UH had been hoping the state would help plug some of those holes.

The University of Hawaiʻi needs an additional $37.9 million for programs and services at its 10-campus system for fiscal year 2026, which begins July 1.

The money would be used to pay for a range of things, including nursing programs, debt service for the UH Cancer Center, information security, financial aid counselors and athletic programs.

But, according to an analysis of the state budget posted Friday by UH News, the Senate thinks the university can do just fine with less money in its operating budget — just $5 million total, to be exact. A similar amount is allocated for the next fiscal year.

Kalbert Young, UH’s vice president for budget and finance and its chief financial officer, said the budget proposal from the Senate is unfortunately “par for the course — normal.”

“There always is a very big difference in terms of where the Senate and the House are in terms of budget priorities,” he said Tuesday.

Young, who was the state budget director under Gov. Neil Abercrombie and is no stranger to budget fights, is not sure what UH will ultimately end up with as House Bill 300 is negotiated behind closed doors.

University of Hawaii vice president for budget and finance/CFO Kalbert Young testifies to the House of Representatives education committee in support of HB 1537 Tuesday, Jan. 30, 2024, in Honolulu. HB 1537 proposes amendments to articles VII and X of the Constitution to authorize legislation to establish a tax of residential investment property to increase funding for public education. (Kevin Fujii/Civil Beat/2024)
University of Hawaiʻi vice president for budget and finance and CFO Kalbert Young says the Senate dramatically reduced UH’s request for additional operating funds. Coming on top of federal budget cuts will hurt the university, he says. (Kevin Fujii/Civil Beat/2024)

It takes a lot of money to run the university — typically around $595 million a year — and UH has in recent years enjoyed support from many at the Legislature. In fiscal year 2025 (which ends June 30) UH got $3 million more in general funds than it did in the previous fiscal year, for a total of $617 million.

But Young is alarmed at what appears to be a pattern: The Senate always chips away at what the university says it needs to do its work. Several senators, especially Donovan Dela Cruz who leads the Ways and Means Committee, and Donna Kim, chair of the Senate Higher Education Committee, have historically been highly critical of how UH spends its money, even though it has self-governing autonomy.

Senate leadership did not respond to an inquiry about the UH budget.

Young also puts the current state funding request in the context of significant cuts at the federal level under the Trump administration, something that Young’s own boss has recently warned about.

In a mass email to the UH community last week, UH President Wendy Hensel detailed some of the changes UH has made in response to Trump administration policy.

“So far at UH, 44 programs have been terminated, received stop-work orders, or are being phased out, affecting more than 39 employees and approximately $23.5 million in funding,” she wrote. “We expect this number to grow. Campuses will likely need to use reserve funds to meet severance obligations for affected employees, as required by collective bargaining agreements and university policies.”

Hensel did not identify the programs or employees. But she said changes in financial planning are likely due to the economic uncertainty coming from Trump’s tariff policies that could drive up inflation and thus university operating costs.

Hiring restrictions, limits in travel expenditures and reviews of contracts are already underway.

The Senate Ways and Means Committee and the House Finance Committee met Tuesday to announce some decisions budget negotiators had made in private meetings. Another meeting is set for Thursday to announce more decisions after more closed-door meetings. (Chad Blair/Civil Beat/2025)

The Senate’s altering of UH budget priorities is also evident in the university’s request for its capital improvement projects budget.

For fiscal year 2026, for example, UH regents asked for $381 million. The House version of the budget, which was drafted before it went to the Senate, trimmed that amount to $229 million.

The Senate’s CIP appropriation increased the figure to $252 million. But, as Young observed, close to half of that amount would be for a single project — $120 million for Kauaʻi Community College student housing.

The leaders of the House and Senate are both from Kauaʻi.

Young did note that Gov. Josh Green and the House have been much more favorable to UH’s budget priorities than the Senate.

While the additional operating budget requests approved by the Green administration and the House were roughly $5 million to $6 million less than what the UH Board of Regents sought, they were still well above the $30 million mark — far more than the $5 million or so allowed by the Senate.

Though concerned, Young is taking the budget uncertainty in stride.

“This is part of the process, and we expect that they’ll work out the differences in conference,” he said Tuesday.

Conference between the House and Senate began Monday and continues through April 25. The Senate Ways and Means Committee and the House Finance Committee are expected to meet publicly early Thursday evening to see if they can hammer out a budget before the three-day weekend begins.

Young said the operating and CIP requests were made before Trump was sworn into office in January. But he said the situation has changed significantly over the past five weeks.

“And every week is worse,” Young said. “So we’re talking about funding for programs, services — in addition to research that the university does — is going away.”

“So while there is no specific budget ask of the state yet to supplant the loss of those federal funds — spoiler alert — be advised: I portend that that day is coming very soon.”

Hensel is scheduled to hold an open forum Monday afternoon at the UH Mānoa Campus Center to provide an update on the impact of federal policy changes and the university’s response.


Read this next:

Senate Bill Would Put Major State Funding For Honolulu Rail Project In Jeopardy


Local reporting when you need it most

Support timely, accurate, independent journalism.

Honolulu Civil Beat is a nonprofit organization, and your donation helps us produce local reporting that serves all of Hawaii.

Contribute

About the Author

Chad Blair

Chad Blair is the politics editor for Civil Beat. You can reach him by email at cblair@civilbeat.org or follow him on X at @chadblairCB.


Latest Comments (0)

Has anyone studied the University Lab School recently? I have never understood what justifies its existence. The land is very valuable and can be sold for multi million dollars.

Auntiemame · 1 year ago

If cuts must be made, I have a suggestion on the place to start.Prior to UH President Wendy Hensel taking office, she already had plans to bring on a new senior adviser from her prior job in New York.That adviser, Kim Siegenthaler, is earning $250,000 a year. In January, the UH Board of Regents created the new position just for her, without requiring formal recruitment.

Valerie · 1 year ago

So UH's ask is for $37.9 million... It seems like a lot, but if I'm not mistaken, the Hawaii Tourism Authority gets a lot more than that. Why cut higher education funding that produces important Hawaii-specific research and gives many locals an affordable college option for more employment opportunities? But no cuts for HTA that spends tens of millions "marketing" Hawaii to potential visitors with little quantitative evidence that their marketing has any significant effects on visitor numbers or spending? Wrong priorities, but we get what we vote for...

AlohaSpirit · 1 year ago

Join the conversation

About IDEAS

Ideas is the place you'll find essays, analysis and opinion on public affairs in Hawaiʻi. We want to showcase smart ideas about the future of Hawaiʻi, from the state's sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea.

Mahalo!

You're officially signed up for our daily newsletter, the Morning Beat. A confirmation email will arrive shortly.

In the meantime, we have other newsletters that you might enjoy. Check the boxes for emails you'd like to receive.

  • What's this? Be the first to hear about important news stories with these occasional emails.
  • What's this? You'll hear from us whenever Civil Beat publishes a major project or investigation.
  • What's this? Get our latest environmental news on a monthly basis, including updates on Nathan Eagle's 'Hawaii 2040' series.
  • What's this? Stay updated with the latest news from Maui.
  • What's this? Weekly coverage of Hawaiʻi Island news and community.

Inbox overcrowded? Don't worry, you can unsubscribe
or update your preferences at any time.