The state House of Representatives passed its proposed state budget on Wednesday, one of 453 bills the chamber is transmitting to the Senate during crossover this week.

What You Need To Know

  • House Bill 300 proposes an operating budget of $18.9 billion in fiscal year 2024 and $17.8 billion in fiscal year 2025. The capital improvement budget would be $2.5 billion in fiscal year 2024 and nearly $1.4 billion in the following fiscal year

  • Finance chair Kyle Yamashita: 'This budget proposes to spend $1.3 billion on deferred maintenance which not only includes a backlog in facilities repair, but our most valuable resource, our natural environment – our parks, forests and ocean resources'

  • Saiki and House leaders announced the passage of HB 300 and provided an update on key measures from the Majority Bill Package at a media availability on Wednesday

  • HB 951 HD1 would deposit funds into the rental housing revolving fund to be used for grants or loans to mixed-income rental housing projects or units in such projects targeted for qualifying individuals or families

“The House has made momentum on priority legislation that supports Hawaii’s families and paves a path forward to a sustainable future for our state,” said House Speaker Scott Saiki.

House Bill 300 proposes an operating budget of $18.9 billion in fiscal year 2024 and $17.8 billion in fiscal year 2025. The capital improvement budget would be $2.510 billion in fiscal year 2024 and $1.389 billion in the following fiscal year. 

“This budget proposes to spend $1.3 billion on deferred maintenance which not only includes a backlog in facilities repair, but our most valuable resource, our natural environment – our parks, forests and ocean resources,” said finance chair Kyle Yamashita. “The intention is not to immediately spend the money, but to strategically tackle these projects to ensure that the state receives the best value while keeping the projects’ timetables in mind.”

As Yamashita previously explained, the proposed budget for FY 2025 is relatively conservative due to concerns over slowing economic growth and tax collections over the coming years. Last week, the Council on Revenues that lowered the state’s projected budget surplus for this year by more than $300 million.

Saiki and House leaders announced the passage of HB 300 and provided an update on key measures from the Majority Bill Package at a media availability on Wednesday.

HB 954 House Draft 2 increases amounts for income tax brackets and personal exemption and standard deduction amounts for 2023. It also changes the amount of the state earned income tax credit to an unspecified percentage of the federal earned income tax credit allowed based on an individual’s federal income tax return. The measure passed first reading in the Senate and has been referred to the Senate’s Ways and Means Committee.

Rep. Daniel Holt said the measure focuses on struggling families.

“Lowering the cost of living for local families has always been a priority of mine and this measure does exactly that,” Holt said. “By reducing the tax burden to low- to moderate-income taxpayers, this measure provides financial relief to Hawaii’s working families.” 

HB 953 HD 1 would require the state Department of Land and Natural Resources to develop and publish a website that includes the application processes for a permit, license or reservation needed to conduct recreational and commercial activities in the state that are regulated by or under the jurisdiction of the department. I would also require DLNR to convert existing application processes into a digital format for the website. 

“Hawaii residents have long been frustrated by overcrowded parks, commercial operators utilizing state resources without proper permitting, and a lack of funding for our precious natural resources,” said Rep. Sean Quinlan. “With the creation of this centralized reservation and fee system, we can ensure that the needs of local people are the first priority, while also generating sufficient revenue to protect and improve these public lands. It is the first of many steps toward a more responsible and sustainable Hawaii.”

The bill passed first reading in the Senate and was unanimously recommended for passage by the Senate Committee on Water and Land. It is currently referred to as the chamber’s ways and means committee.

HB 951 HD1 would deposit funds into the rental housing revolving fund to be used for grants or loans to mixed-income rental housing projects or units in such projects targeted for qualifying individuals or families.

“Affordable housing remains a very important issue for the House and the budget reflects an initial $75 million infusion into the Dwelling Unit Revolving Fund and administered by the Hawaii Housing and Finance Development Corporation, which can be used for infrastructure investments and a wide range of housing related projects,” said Rep. Troy Hashimoto. “The budget also includes an initial infusion of $75 million into the Rental Housing Revolving Fund, which will also be further discussed through HB 951.”

The measure passed first reading in the Senate and was referred to the committees on housing and ways and means. The housing committee scheduled the bill for a hearing on Thursday.

HB 949 HD2 establishes and appropriates funds for a loan program that would provide so-called asset-limited, income-constrained employed families with low-interest loans to buy and install solar energy storage systems. It would also fund another loan program to provide ALICE households with low-interest loans to buy and install photovoltaic and energy storage systems, including battery-storage systems.

The measure passed first reading in the Senate and has been referred to the committees on energy, economic development and tourism; commerce and consumer protection; and ways and means.

Rep. Nicole Lowen said the bill would bring equity to state’s renewable energy transition by making rooftop solar and storage systems attainable for more households.

“Hawaii’s ALICE families stand to benefit the most from the long-term savings and lower bills associated with renewable energy systems, and this bill will open up new pathways to make this financially possible for all of Hawaii’s working families,” Lowen said. “The house draft of the budget includes $300 million to capitalize on this program, which will make it self-sustaining for many years to come.”

HB 948 HD2 would establish a child and adolescent mobile outreach team as a two-year pilot program on Oahu and one neighbor island site to expand existing crisis-response services. 

“The child and adolescent crisis mobile outreach teams on Oahu and a neighbor island will promote safety for children where they are—in their homes, schools and community settings—by responding immediately when a crisis arises, and also continuing to provide stabilization for eight weeks,” said Rep. Lisa Marten. “The ongoing care will help children and caregivers to develop new coping skills and to connect with higher-level services if needed. This program will allow more children to stay in their homes, rather than be transferred to age-appropriate acute psychiatric hospital beds or other out-of-home placements which are in short supply and are very costly.”

House majority leader Nadine Nakamura said she was thankful for her colleagues' efforts in passing the measures out of the House.

“We are committed to building more affordable housing, providing financial relief to working families, providing mental health resources, and protecting our natural environment to mitigate and adapt to climate change,” Nakamura said.

Michael Tsai covers local and state politics for Spectrum News Hawaii. Email him at michael.tsai@charter.com