Gov. David Ige unveiled his 2021-23 Executive Supplemental Budget.  The state budget addresses the state’s priorities. This supplemental budget request presents an action plan that addresses the issues of today and continues to make strategic investments toward improving the state’s social and physical infrastructure.

“This budget request is very different from budget requests of the previous two years, when we had to cut more than $1 billion, and all state agencies were forced to slash spending. This year, the economy has improved more quickly than anticipated,” said Gov. Ige in a statement.

Current general fund tax revenue growth through the first five months of FY 22 has been $27.3%.

The total Operating Budget from all methods of financing includes:

• $16.017 billion in FY 22. (This is .1 % less than the current appropriation of $16.040 billion.)
• $16.926 billion in FY 23. (This is 10.2% more than the current appropriation of $15.364 billion.)

For FY 23, the recommended General Fund adjustment to the Operating Budget is $8.701 billion.

• This represents a 12.2% increase, or $942.3 million, over the current appropriation level of $7.759 billion.

The proposed Capital Improvements Program for General Obligation Bond Funds includes:

• A slight decrease of $2.0 million in FY 22. This is .2% less than the current level of $984.8 million in FY 22.
• In FY 23, the administration is proposing an increase of $827.4 million. This is 281% more than the current total of GO bond funding of $294.1 million. This increase is high because of the Fiscal Biennium Budget appropriated CIP primarily in FY22 last Legislative Session. 

Both the Dept. of Education and the University of Hawaiʻi suffered significant budget reductions at the beginning of the pandemic.

• This budget adds $100.2 million for various DOE programs to restore funding due to reductions during the pandemic.
• Adds $32.5 million for extra compensation for classroom teacher differentials

• The administration is requesting $240 million additional funds in FY 23 for public school facilities – everything from deferred maintenance to health and safety projects and compliance. This will give a much-needed boost to the current appropriation, which is $26 million in FY 23.
• At the University level, the administration is requesting $86.5 million for modernization, maintenance, capital renewal/deferred maintenance, and technology renovations across the state. This will increase UH’s FY 23 appropriation to $189.1 million in FY 23.

University of Hawaiʻi Medical Education – The pandemic underscored the need for more nurses and doctors, especially on the neighbor islands.

• To address the state’s doctor shortage, Gov. Ige is requesting  20 permanent positions and $2.04 million to expand the John A. Burns School of Medicine’s residency program on the neighbor islands.
• To address the state’s nursing shortage, Gov. Ige is requesting $1.75 million to support the University of Hawaiʻi’s nursing programs.

Medicaid Healthcare Payments – During the pandemic, the Department of Human Services provided help to hundreds of thousands of people who never thought they would need state assistance. Med-QUEST provided health care coverage to more than 100,000 additional individuals.  Medicaid now provides coverage for nearly 30% of the state’s population.

• This budget increases Medicaid health care payments by $15.9 million in general funds and $10.2 million in federal funds to provide additional home- and community-based services, extended post-partum benefits and expanded adult dental benefits.

Information Technology – The state’s reliance on information technology came to the forefront during the pandemic, which emphasized the need to develop an innovation economy in Hawaiʻi. The administration’s broadband initiative will form the foundation for this new economy.

• Gov. Ige is requesting $33.3 million in ARP funds for Hawaiʻi’s state’s match so the state can receive additional federal funds through the Broadband Equity, Access, and Deployment federal grant. This would be the largest investment in Broadband, in state history.
• In addition, the Ige administration is lapsing ARP-funded CIP projects that were appropriated last year but do not meet federal guidance that was issued after the appropriations were made. The governor is reappropriating $115.3 million in ARP CIP funding for statewide broadband projects pending U.S. Department of Treasury approval of our grant plan.

Housing – The demand for housing, including rentals, has reached critical proportions.

• Gov. Ige is requesting a $40 million cash infusion to the School Facility Agency for much-needed teacher housing in West Oʻahu and requesting a $40 million special funds authorization for the project.
• He is also requesting $5 million for statewide loan capitalization for the Department of Hawaiian Home Lands and asking for $10 million for DHHL lot development projects.

Public Safety:

COVID-19 Response – This budget requests funds to continue to prioritize public health. The administration is adding:

• $61.8 million for Safe Travels, National Guard costs, and other COVID-19 expenditures.
• Over $30 million in state and federal funds to provide contingency funding for statewide COVID-19 operations.
• And restoring $5 million to the Major Disaster Fund.

Jails and Prisons – Every state in the nation has been reporting prison staffing shortages for many years, and the COVID-19 pandemic exacerbated the situation. COVID-19 outbreaks in our jails and prisons were alarming.

• This budget restores $17.6 million to fund 291.5 permanent positions in the Department of Public Safety. This will bring the department up to FY 2019 staffing levels.
• It adds 193 new positions, including 29 healthcare positions, to staff new wings currently underway that will address the chronic overcrowding problems on Hawaiʻi and Maui, as well as at the Women’s Community Correctional Center.
• This budget also adds 24 permanent positions to support law enforcement services on Oʻahu and Hawaiʻi.
• In addition, the budget adds 22 permanent healthcare positions to improve healthcare services in various correctional facilities. The need for around-the-clock nursing services and increased counseling was brought to light during the pandemic.

Gov. Ige is also making a number of improvements to public safety facilities including:

• $5 million for upgrades to the state’s emergency operations center,
• $21 million to replace the existing inmate management system for Public Safety facilities, statewide, and
• And $15 million to take the next steps in relocating Oʻahu Community Correctional Center

The pandemic reinforced the relationships between our people, place, and culture. From the beginning, the Ige administration made it a priority to create a cleaner, safer, and healthier Hawaiʻi. It has focused on protecting the state’s watersheds, better managing our oceans, creating a bio-security plan, doubling local food production, and moving toward 100% renewable energy.

This budget adds funds to support these projects:

• $10 million for the Royal Kunia Agricultural Park,
• $4 million for watershed protection, and
• $3.45 million for Maunawili and Kāneʻohe Pali acquisitions on Oʻahu.

Transportation

Gov. Ige is also seeking to strengthen the infrastructure that supports Hawaiʻi’s communities. Using a mix of funding sources, the state will make needed improvements to airports, highways, and harbors across the state.

Additional Proposal

In addition to the requests made in this budget, Gov. Ige will be submitting a separate spending bill to the Legislature to replenish the Emergency and Budget Reserve Fund.  Gov. Ige said he will be proposing to deposit $1 billion into the Emergency and Budget Reserve Fund.