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Tuesday, December 17, 2019
Ige Unveils Supplemental Budget--Massive Spending Hike
By News Release @ 3:24 AM :: 2876 Views :: Hawaii State Government, Taxes

GOVERNOR IGE’S SUPPLEMENTAL BUDGET PROPOSAL INVESTS IN IMPROVING THE LIVES OF HAWAII’S PEOPLE

Governor Ige’s Supplemental Budget proposal invests in improving the lives of Hawaiʻi’s people

Budget supports progress in education, homelessness, sustainability

News Release from Office of the Governor Dec 16, 2019

HONOLULU –  Gov. David Ige unveiled his Executive Supplemental Budget for Fiscal Biennium 2019-21 on Monday, requesting that the Hawai‘i State Legislature continue to support crucial programs that aim to ease the state’s biggest challenges.

“This proposal helps us to build on momentum already achieved in our high-priority areas such as public education, affordable housing and homelessness, and sustainability,” said Gov. Ige. “This budget includes funding for programs that we know are making a real difference in our communities.”

SUPPLEMENTAL BUDGET OVERVIEW:

OPERATING: Total operating supplemental adjustments are $62.5 million (FY 20) and  $429.0 million (FY21) (all means of financing). This represents increases of 0.4% (FY 20) and 2.7% (FY 21).

The new totals are: $15.695 billion (FY20) and $16.197 billion (FY 21).

GENERAL FUNDS: The request is $62.5 million (FY 20) and $214.1 million (FY21

CAPITAL IMPROVEMENTS: There are no proposed changes for FY 20.

The total for FY 20 is unchanged at $2.331 billion. Total capital adjustments for FY 21 only — $1.468 billion (all means of financing). The total for FY 21 is increased to $2.624 billion.

“The state’s recently improved general obligation bond rating and lower interest rates make it a favorable time to invest in the state’s infrastructure. Ultimately, the higher bond ratings free up funds that can be used for education, housing, homelessness and sustainability,” said Gov. Ige. “Capital projects also have a broad and positive economic impact on our communities, supporting jobs – particularly in the construction industry.”

BUDGET HIGHLIGHTS

EDUCATION:

Adds $14.5 million (FY 20) and $26.7 million (FY 21) for extra compensation for classroom teacher shortage differentials in our public schools.

Adds $1.4 million (FY 20) and $1.9 million (FY 21) for extra compensation for classroom teacher shortage differentials in our Charter Schools.

The pay differentials aim to attract and retain teachers in hard to fill special education positions, districts, and in Hawaiian language immersion programs and in special education.

Adds $13.2 million for the Department of Education’s Weighted Student Formula.

Adds $19 million for the expansion of the Hawai‘i Promise “last dollar” Scholarship Program to include all University of Hawai‘i campuses.

Adds $220.0 million in capital improvement projects to improve public school facilities. (Increases FY 21 total to $425.2 million).

Adds $86.8 million total CIP for the University of Hawai‘i. (Increases FY 21 total to $180.1 million).

“I’ve always believed the teachers in the classroom have the greatest impact on our children. A few years ago, we completed a Blueprint for Hawai‘i’s public schools. Now, the DOE is preparing the 2030 Promise Plan, which will guide Hawai‘i’s public-school system from 2020-2030, focusing on creative ideas and solutions aimed at creating a thriving and sustainable state,” said Gov. Ige.

HOUSING:

Adds $20 million in CIP for public housing statewide

Adds $2.5 million to the Hawai‘i Public Housing authority for predevelopment costs related to the School Street project.

Adds $20 million for Department of Hawaiian Home Lands development projects

Adds $5 million for repairs and maintenance within DHHL subdivisions.

“Housing is our greatest community need and an important part of our effort to address homelessness. We have collaborated with the Legislature for more funding and are getting results. We will meet our goal of creating 10,000 new units by the end of 2020. Since 2015, 8,700 new units have been built. Another 3,200 more are in production,” said Gov. Ige.

HOMELESSNESS:

Adds $5 million for stores property and debris removal services on state land.

“Prior to 2017, only 4,000 homeless individuals per year were placed in permanent housing. In 2018, more than 7,000 homeless people were placed in permanent housing. This year, we’re on track to exceed 7,000 placements,” said Gov. Ige.

SUSTAINABLE HAWAI‘I:

Adds $20 million for infrastructure construction for Royal Kunia Agricultural Park, for 24 farm lots on state’s best agricultural land.

Adds $375,800 for 5 positions in Industrial Hemp Program.

Adds $700,000 for Rapid ʻŌhiʻa Death response.

Adds $6.9 million in special funds for conservation and forest carbon sequestration activities.

Adds $2 million in operating funds for state parks operations and maintenance and $6 million for state parks improvements.

“My administration has been working toward doubling local food production by 2020. Hawai‘i’s agriculture industry is looking at developing plantation lands for diversified agriculture and exploring what can be grown for local consumption,” said Gov. Ige.

TRANSPORTATION:

Last year’s biennium budget included:

$70 million (all MOF) for the Lahaina Bypass.

$40 million (all MOF) for the Highway 130 work on Hawai‘i Island.

This year’s budget includes funding proposals for other highway projects:

$92 million (all MOF) for Kuhio Highway improvements from Hanamaulu to Kapaa, Kaua‘i.

$200 million in revenue bonds for the widening of the H-1 Freeway, eastbound, from Waikele to Halawa.

OTHER HIGHLIGHTS:

Adds $1.6 million for three positions for the Title X Family Planning Program

Adds $30 million for the Veteran’s Administration Long-Term Care Facility project on O‘ahu.

Adds $560,000 for 15 positions at Maui Community Correction Center to increase security

Adds $2.1 million for increase county contract cost for lifeguard services at state beaches.

Adds $1.5 million for Kupuna Caregivers Program.

###

Related: Grassroot: Ige’s fiscal 2021 budget ‘unsustainable’ 

CB: His supplemental budget request depends on the Legislature and upcoming funding forecasts.  

MN: Funds for old, new jail; to purchase watershed all part of Ige’s budget

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