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May 3, 2026 News Read
By Andrew Walden @ 11:24 AM :: 140 Views

Deciphering the Budget

UHERO: The True Cost of Subsidizing Childcare

Untangling occupational licensing rules

Hawaii Family Forum Legislative Week in Review

Alleged Pimps Catch Federal Case

Do Trump Budget Cuts Signal A New Challenge For Native Hawaiians?

CB: … When Trump released his fiscal year 2027 budget in April he proposed eliminating a Native Hawaiian block grant program that annually sends tens of millions of dollars to the Department of Hawaiian Home Lands to help build housing and lease homesteads to those who have spent decades on its waitlist.

His justification: “Native Hawaiians are not a tribal nation but a racial group.” (LINK: Pg 37.)

Schatz said he’s confident Congress will continue to fund Native Hawaiian health care, education and housing programs despite Trump’s wishes, just as it did last year and throughout his first term.

Already, the legislative branch is bucking the president. For instance, after Trump’s budget proposed slashing $28 million from a Native lending program that’s part of a larger fund that he said “advanced immigration, gender, and climate radicalism,” the GOP-led House Appropriations Committee passed its own spending measure that restored funding for the Native program to an even higher level than before – $35 million. …

But Schatz still worries about the groundwork being laid.

Trump’s budget proposal follows a December legal memorandum from the U.S. Justice Department that used language similar to that found in his budget to argue that certain Native Hawaiian education programs were race-based and therefore unconstitutional. That memo highlighted the fact that Native Hawaiians, unlike many Native American tribes and Alaska Natives, do not have formal federal recognition and are not represented by a political entity that’s forged a government-to-government relationship with the U.S.

Schatz said that memo is just an opinion and has yet to be tested, but it aligns with the arguments being pushed by other outside conservative groups who have challenged Native Hawaiian programs and institutions. These include Students for Fair Admissions, which has targeted Kamehameha Schools over its admissions policy, and Do No Harm, which is trying to open up a Native Hawaiian health scholarship program to non-Hawaiians.

“This is an assault that underpins these programs,” Schatz said. “For some of this I can be useful, but a lot of this is going to be litigated.”

U.S. Rep. Ed Case, who sits on the House Appropriations Committee and is a lawyer, shares a similar view. Case said the DOJ memo looks like it was “written with a result in mind” and is “highly tailored” to the legal arguments already being advanced by conservative groups, such as Do No Harm, that are currently suing to halt Native Hawaiian programs. …

Read … Do Trump Budget Cuts Signal A New Challenge For Native Hawaiians? - Honolulu Civil Beat

Last-minute Conference Committee Scramble

CB: … Friday was quite chaotic at the Hawaiʻi Legislature as lawmakers and staff scrambled to pass dozens of bills that faced a 6 p.m. deadline. They included measures on the conveyance tax and Hawaiian homelands, redevelopment of the Aloha Stadium complex, enforcement of federal immigration activities and setting benchmarks for the production of lei….

Read … The Sunshine Blog: And So Ends Another Conference Committee Scramble - Honolulu Civil Beat

“Sylvia Luke is still the lieutenant governor of this state”

SA: … Acting Lt. Gov. Keith Regan splits his nearly 11-hour work days starting at 6 a.m. at his full-time jobs as state comptroller and head of the vast state Department of Accounting and General Services. Then walks across Punchbowl Street to spend his afternoons on the fifth floor of the state Capitol, where he is filling in as lieutenant governor, usually skipping lunch in the transition.

Instead of working in Lt. Gov. Sylvia Luke’s office, sitting in her chair and at her desk, Regan prefers to operate out of her conference room.

“Sylvia Luke is still the lieutenant governor of this state,” he said in an interview in his temporary Capitol workspace, not even a week on the job. “I have tremendous respect for Lt. Gov. Luke. And I’m really here to just serve and provide continuity and stability for this office while this situation is being dealt with.

“So, in the meantime because it is temporary, I just felt that that (Luke’s office) is her sacred space.”…

… If Luke does not return from leave this year, Regan would serve until the next governor and lieutenant governor are sworn into office at noon on the first Monday of December, which is Dec. 7 this year, following the Nov. 3 general election.

But Regan knows that his temporary assignment at the Capitol can end any day if Luke returns.

“It could be a week, two weeks, a month or whatever that might be,” he said.

Legal and political questions hanging over Luke caused Green to cancel a series of trips overseas and to Washington, D.C., and other parts of the mainland that would have left her in charge of the state.

So Green can now resume traveling, especially to Washington to try to work with the Trump administration on a long list of issues that affect Hawaii and the rest of the country, such as health care and climate change policies.

Green also serves as vice chair of the Western Governors’ Association and will become chair later this year, which will create even more travel demands on him….

KITV: Hawaii’s acting lieutenant governor outlines priorities stepping into new role | Politics | kitv.com

Read … Hawaii’s acting Lt. Gov. Keith Regan pulls double duty | Honolulu Star-Advertiser

For youth, state must act on housing affordability

SA: … Unaffordability begins with Hawaii’s restrictive zoning regulations. Although intended to protect local lands from overdevelopment, these policies limit construction so severely that only about 5% of the state can be built on. At the same time, regulations favor high-rise apartments and single-family homes, even though many families can only afford smaller and more flexible options like duplexes or accessory dwelling units.

Proposals from the Grassroot Institute of Hawaii to relax zoning laws and allow more housing conversions are a step in the right direction. However, there is no silver bullet to a problem of this scale. Creating an environment where housing for local families can be built rapidly will require a more comprehensive policy response.

In addition to housing costs, Hawaii’s high tax burden adds another layer of financial pressure. The state ranks first in the nation for overall tax burden, which is especially difficult for small business owners and working families. As more people leave, the tax base shrinks, placing even more pressure on those who remain. Government projects — such as the rail and the new Aloha Stadium — while well-intentioned, have also added significant financial strain.

Although tax cuts are critical, reducing overall government spending is equally necessary. The sweeping income tax cuts that were enacted in 2024 under the Green Affordability Plan illustrate this idea well. Spearheaded by Gov. Josh Green, the plan was touted as the largest tax cut in state history, and the Department of Taxation projected that by 2031, it would reduce the taxes of a median-income family of four by 69%.

Yet lawmakers and the governor were trying to scale back those cuts to offset federal funding reductions. Rather than looking first to increase tax revenue, the state should focus on identifying the many areas of the budget where spending can be reduced.

Certainly, the decision to leave is not an easy one, especially for those born and raised in Hawaii who want to raise their families here. I hope to eventually settle down in Hawaii because I want my children to grow up knowing our island’s unique, rich culture and loving community. However, I worry that it may never be a financially viable option….

SA: Column: For youth, build resilient economy to retain talent | Honolulu Star-Advertiser

Read … Column: For youth, state must act on housing, affordability | Honolulu Star-Advertiser

City, State Hustle to Maximize Kona Storm Losses: Federal Taxpayers to Cover 75%

SA: … Andy Kawano, the city’s budget and fiscal services director, said the city’s latest estimate for storm-related costs is $100.4 million. “That does not include the Board of Water Supply that will submit a separate request for assistance,” he added.

Of that total, Kawano said about $70 million is tied to the city’s capital improvement program while roughly $30 million impacts the general fund, including “emergency-type work” like police services.

City employee overtime reached $2.5 million due the storms, he said.

To offset those costs, the city is seeking federal reimbursement through the Federal Emergency Management Agency.

“Our estimates will go through a scoping process with FEMA … ensuring that the costs … are covered by the program,” Kawano said, noting the city expects to submit its formal request in coming days.

On April 7, the Trump administration authorized Hawaii to recoup at least 75% of eligible recovery costs.

(CLUE: Hence the desire to maximize the losses.)

(Smiling broadly) Gov. Josh Green has estimated that total storm damage statewide exceeds $1 billion….

(QUESTION: How much space is taken up by $1B in $100 bills? How much would it weigh? See: LINK)

Read … Honolulu braces for rising costs as storm damage exceeds $100 million | Honolulu Star-Advertiser

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