House Standing Committee on Finance

I'm going to convene the Committee on Finance. Today we're hearing three budget bills. So first up is House Bill 410, HD1. Vice Chair.

First up, do we have the Office of Hawaiian Affairs in support. Actually, don't have anybody else checked in. We did receive testimony also in support from the Pūʻā Foundation and Kahuku Medical center, as well as a number of individuals. Are any of them here in the room and would like to testify. Anybody on zoom.

Okay, Members, any questions. Okay, thank you. Move on to the next Bill. House Bill 400 relating to Judiciary. Vice Chair.

First up, we have the Judiciary in support.

Morning, Chair Yamashita, Vice Chair Takenouchi, Members of the Committee. Brandon Kimura, Director of the Judiciary's Policy and Planning Department. I'm here to stand in strong support on our written testimony and I'm available for questions.

Okay, thank you.

Thank you.

Thank you. We also have Volunteer Legal Services Hawaii in support.

Volunteer Legal Services Hawaii in support of HB 410. I'm here for any questions. This is Rachel Figueroa. Thank you.

Thank you. We have Legal Aid Society of Hawaii in support.

Good morning, Chair, Vice Chair. David Copper, Executive Director of Legal Aid Society of Hawaii. We stand in strong support. The Judiciary's general budget priorities are really integral to access to justice and access to the courts, and they're also generously administering a civil legal services line item which is vital to our civil legal services providers.

I'm here for any questions, but thank you.

Thank you. We also received testimony in support from the Department of Education, the Legal Clinic, and the Hawaii State Bar Association. Is there anybody else in the room wishing to testify? Anybody on Zoom?

Members, questions? Thank you very much. We'll move on to the next Bill. House Bill 300 relating to the state budget. Vice Chair. Oh, yeah.

Oh, and then. Okay, first up, we have the Office of the Governor in support.

Aloha Chair, Vice Chair, Members of the Committee. Will Kane, Senior Advisor for Governor Green. So we stand our written testimony in support. And I'm here for any questions you may have. Mahalo.

Thank you. Next up, we have the Department of Budget and Finance.

Thank you, Chair, Vice Chair, Members of the Committee, Luis Salaveria, your Director of Finance. Before I stand on our testimony, Chair, if I may say a few words. So, you know, again, I'd like to thank everybody that was part of the development of the Executive Biennium Budget for 25-27.

You know, everyone throughout the departments that has a title of program budget analyst, you know, without which this budget wouldn't be possible. And especially the staff in my department who really kind of work tirelessly on the budget day after day. But I'd especially like to thank Mr. Naomihira, who's here today.

You know, he's a guy who I really, truly admire and a true public servant who's done this for a very, very long time. And, you know, without which we couldn't do what we do in managing the state's finances. So thank you, Neil.

You know, on behalf of the Governor, the Lieutenant Governor, my fellow Cabinet Members, we're here to present to you the operational budget for the upcoming biennium. Needless to say, much has changed when we developed the budget back in August of last year to where we are right now.

But we believe that the budget before you represents the needs and priorities of our state.

And I believe I can speak on behalf of the rest of the Administration as well as my fellow cabinet Members that we're ready and we're here to support you on your work as we approach what is likely going to be a challenging few years.

So with that, Chair, I'll stand on our testimony and I will be here to answer any questions that you may have. Thank you.

Thank you. We have the Department of Corrections and Rehabilitation in support.

Hi. Good morning. Chair, Vice Chair.

Thank you. We have the Department of Education in support.

Hello Chair, Vice Chair, Members of the Committee. Superintendent Keith Hayashi testifying on behalf of the Department of Education. We stand on a written testimony in support. Thank you.

Thank you. We have the Department of Agriculture in support. Thank you. We have the Department of Hawaiian Homelands in support. Thank you. We have the Department of Land and Natural Resources in support.

Good morning Chair and Vice Chair, Dawn Chang on behalf of the Department of Land and Natural Resources, we stand in support of our testimony. And I'm available to answer any questions. Thank you very much.

Thank you. We have the Department of Human Resources Development and support. Thank you. We have the Department of Accounting and General Services in support.

Chair, Vice Chair, Members of the Committee, good morning. Keith Regan, Comptroller for the State of Hawaii, Department of Accounting and General Services. We stand on our written testimony in support. Happy to answer any questions and want to thank you in advance for all your hard work on this budget. Mahalo.

Thank you. We have the Department of Taxation in support. Thank you. We have the Department of Health in support. Thank you. We have DBEDT in support.

Good morning. Chair, Vice Chair, Members of the Committee, thank you very much. Jimmy Tokioka. On behalf of DBEDT's 6 divisions and 11 agencies, stand in very strong support of House Bill 300 and appreciate all the work.

We know that you guys come in on Saturdays to formulate the plan, and we appreciate all the work that you've done. Thank you.

Thank you. We have the Department of Commerce and Consumer Affairs in support. Oh, coming in. Yeah. Sorry. Oh. DCCA.

Members of the Committee, Nadine Ando here on behalf of the Department of Commerce and Consumer Affairs, we stand on our written testimony and are here available for questions.

Thank you. We have the Department of Human Services in supporting testimony.

Standing on our written testimony. Thank you.

Thank you. We have the Department of Law Enforcement in support.

Good morning, Chair, Vice Chairs and Members of the Committee. My name is Jared Redulla, the Deputy Director for Law Enforcement. Thank you for allowing me to testify.

Just want to summarize. We are looking for requesting budget support for our IT infrastructure, support in the area of agriculture enforcement, and some support for our forensic laboratory. Thank you for allowing me to testify.

Thank you. Have the Department of the Attorney General. Thank you. We have the Department of Defense in support on Zoom. Yep. Elaine. Yes. Department of Defense. Did you want to. I mean, she's here. Department of Defense on Zoom. Okay. Department of Transportation.

Hello Chair, Vice Chair, Members. Ed Sniffen with Hawaii DOT. We stand on our testimony in support. Thank you.

Thank you. We have the Hawaii State Public Library System in support. Libraries. Oh, there she...

Aloha. Good morning. Stacey Aldrich, State Librarian. We stand on a written testimony. Mahalo.

We have Hawaii Health Systems Corporation in support.

Stand on our written testimony in support.

Thank you. We have, with DBETD, the Stadium Authority in support. Thank you. We have the Hawaii Technology Development Corporation in support.

Oh, sorry. We stand in strong support. Thank you very much.

We have Kahoolawe Island Reserve Commission in support.

Oh sorry, I'm the Chair of the the Board of Land and Natural Resources...[INAUDIBLE]...Kahoolawe Island Reserve Commission...[INAUDIBLE]...would be here? Oh, he's outside? Stands in strong support.

Thank you. Have the Hawaii State Commission on the Status of Women.

Hello, Chair, Vice Chair, Members of the Committee. Yasmine Cheney for the Hawaii State Commission on the Status of Women. I stand on my testimony in support. And I'm available for any questions. Thank you. Thank you.

Hawaii School Facilities Authority. Thank you. University of Hawaii, John A. Burns School of Medicine.

I'm standing here, Coco Seymour, in lieu of our dean, Samuel Shoemaker...[INAUDIBLE]... Thank you.

Thank you. Office of Planning and Sustainable Development Development. Thank you. Hawaii Public Housing Authority.

Chair, Vice Chair, Members of the Committee...[INAUDIBLE].

Thank you. Hawaii Correctional Systems Oversight Commission. Outside. Oversight Commission in support. Executive Office on Early Learning. Thank you. We have HCDA in support. Oversight Commission? Yeah.

Good morning Chair, Vice Chair, Members of the Committee. Mark Patterson, Commissioner and Chair of the Hawaii Correctional System Oversight Commission. We stand on written testimony.

In addition, we'd like to say that after two years of having staff since our COVID inauguration as a Commission, we've done wonderful things and looked at a lot of things, provided many recommendations for DCR at this time.

And we want to support this particular Bill and the budget that we requested an additional two more positions that will help us continue in our work on the oversight of our facilities.

That can free up our oversight coordinator so she can begin the process of collaboration and coordination between the state systems in order to resolve some of the issues with the clientele that DCR has at this time. So appreciate your time. I'll be around for any questions.

Thank you. Do we have the Early Learning Board on Zoom?

Aloha from Maui. I'm Elaine Yamashita, Chair of the Early Learning Board and we stand on our testimony. Mahalo.

Thank you. Do we have the Executive Office on Aging on Zoom? Okay. Sorry. Members. A lot of people.

Maybe what we can do, the Department will maybe next time you organize your Members and you put them in order and then you tell them submit the testimony in order, then make it go a lot smoother.

Okay. Sorry if we skipped anybody. We can circle back. Do we have Hawaii Oral Health Coalition on Zoom?

Hi. Good morning. Aloha, Chair, Vice Chair, Members of the Committee. My name is Patrick Donnelly representing the Hawaii Oral Health Coalition and we stand on a written testimony and support and sincerely thank you especially for your consideration for state level investments into Oral Health. Appreciate the opportunity to testify.

Thank you. Do you have Catholic Charities Hawaii on Zoom with comments.

Aloha. I'm Betty Larson for Catholic Charities Hawaii. We'll send out a written testimony asking you to consider the true cost to maintain our health and human services that are so essential to our state's residents. Mahalo.

Thank you. We have Hawaii Friends of Restorative Justice. In opposition. Lauren Walker. Okay. Do we have BAYADA in support on Zoom?

Thank you, Chair. Vice Chair and Members of the Committee. Kristen Koba-Burdt, on behalf of BAYADA standing in support for the sustained funds for applied behavior analysis services for children with autism is submitted as part of the DHS budget. Thanks so much.

Thank you. We have Reimagining Public Safety in Hawaii Coalition on Zoom in opposition.

Hi. Thank you, Chair. Yeah. Today we stand in opposition to provisions in the current budget Bill that would appropriate 30 million for planning relating to the proposed new jail to replace OCCC, 10 million for a 10 year DCR statewide master plan, and several million more for jail and prison expansion.

The reason we oppose those provisions is the state currently has developed a robust mandate to divert people out of jail and into services. 40% of all people in jail in Hawaii right now are homeless.

And prosecutors, police, public defenders and judges have reached agreement across counties that these folks should be diverted into supportive housing and treatment not not overcrowding our jails.

So this particular provision in the Bill we're opposed to. We do support provisions to expand calhales, expand supportive housing, and as well as community-based mental health treatment. And we encourage the provisions related to the proposed super jail which is estimated for a final cost of over $1 billion.

The 30 million that is slated for planning in the current budget, we ask that that be struck and that additional funding be allocated towards permanent supportive housing, mental health treatment, and other services that will more effectively deal with the public health and housing crisis that we see on our streets. Thank you so much.

Thank you. We have HHFDC. Thank you. And the University of Hawaii Systems. Thank you. Do we have Essential Access Health with comment with comments on zoom?

Good morning. Shannon Olivieri Hovis, Vice President of Public Affairs at Essential Access Health. Thank you for the opportunity to testify in support of invest investments in family planning services.

We support the $3 million line item proposed in the Governor's Budget for contracted reproductive health and family planning services and ask the Committee to keep this in the budget going forward.

Essential Access Health reintroduced the Title 10 Federal Family Planning program to Kauai in collaboration with community partners in 2022 and currently supports 13 healthcare agencies with Title 10 funding and 31 health centers that deliver services on Kauai, Oahu, Lanai, Maui and Hawaii island, providing people with low income access to birth control, STI prevention and treatment, pregnancy options, counseling, life saving, cancer screenings and more.

In the current federal Administration, severe cuts and changes to the program are expected and even with the current level of funding, $2.1 million, there are substantial unmet needs. Access barriers contribute to health inequities including high rates of unintended pregnancy, teen birth rates and maternal and infant mortality.

Additional state funding is essential to supplement federal funds and backfill any loss of federal dollars. Mahalo for the opportunity to testify. Available if you have questions.

Thank you. We have Hawaii Public Health Institute in support. We have the ACLU opposition. Do we have Mary Olson in support on Zoom? Present.

That's all the checked in Members that we received testimony from. Anybody else in the room wishing to testify? Please just state your name and organization...

Mike Naho'opi'i, Executive Director, Kahoolawe Island Reserve Commission. I missed you guys. I was outside so I just. We support the Bill because it gives us our operating funds, but you know, I'll be remiss to my Commission if I don't keep asking for CIP money.

Help us develop our Kihei property so that we can make our own money so I don't have to keep coming here year after year and seeing all you guys.

So if you guys have any extra money, like I always say, little change, we take that and we'll keep working on Maui and keep developing our Kihei property and create another tourist destination so we can generate tax revenues and help everybody. Okay, thank you very much.

Thank you. Please. Thank you. DLIR. Thank you. Anybody else in the room? Thank you. Holoma Collaborative in support. Anybody else in the room? The Energy office. Thank you. In support. Anybody else in the room? Thank you. PUC and support. Anybody else? Anybody on Zoom?

Okay, question Members? Okay, Representative ???.

For DEBDT. Mr. Salaveria, if you don't mind.

B&F. I will jump.

I'm sorry. You're right. And thank you. Thank you for highlighting where we are. I think when we started this budget process, we had a very different outlook. And then we got a number of signals about potential funding cuts.

Could you help me highlight certain departments that might be a little more vulnerable to what we're hearing from the Federal Government about potential loss of support?

First of all, if I can say, there's still a lot of uncertainty, but given some of the rhetoric that has come out, and as much as even the speech last night, we are very concerned about areas within the Department of Human Services, as well as the Department of Education, the University of Hawaii, Department of Land and Natural Resource, basically every Department.

And so we are actively working with all of the departments to make sure that we can weather any type of loss in federal assistance that's coming forward.

Great. Thank you. Thank you for that. Because I heard you highlight the first one, which was Human Services. And so now. Thank you for that. I wanted to call up Director Tokioka, if it's okay. And I'll couch this question with:

When we were doing our budget review, I turned to our Finance Chair and I said, you know, this Department feels like the junk drawer of departments where, whatever. Where if you don't fit holistically in the department's mission or goals and objectives, you got placed over at DBEDT.

But in his wisdom, he reframed it and reframed it to me that your Department really is offense. You help find economy or economic opportunities to help grow economy or help other departments.

And so I was looking at the different highlights in your testimony, and I was just hoping that you could point to a couple of those items I see foreign trade zones, film industry, tourism, some of those departments that are first in goal to seeing some real economic infusion to help the State of Hawaii.

Well, thank you for those questions and thank you for the comment about the chunk draw. It is a mixed bag of agencies and divisions, but in one sense it's very humbling.

And you know, we appreciate that the Legislature has felt that this, this one agency can handle all of these different things from land use to agriculture to film to tourism. And so it's a big responsibility. I'm very fortunate that we have a lot of great Executive Directors that work very, very hard to be on offense.

And Chair Yamashita and I have spent a lot of time in my time at the Legislature talking about his wisdom and talking about how we can try to move the needle on economic development.

So I would say if you said two examples, it would be, of course, HTA, because you know, the Governor did what he did to release restricted money in DEBDT. It's my understanding that.

It's my understanding that DBEDT is the only department that the Governor unrestricted monies because we know how important the industry, the visitor industry on Maui is. So he unrestricted $6.3 million.

And we just met, the board just met last week, Thursday to figure out how we're going to market West Maui in general, West Maui especially, and that will have some spin off to the rest of the state. So that 6.3 million will be specifically for that.

The other thing that you know is something that we're working a lot on. Deputy Director Wicker, myself and Georgia Skinner on the film office. You know, as many of you may or may not know, the film studios in Hawaii were filled for the last 15 years with Lost, Hawaii 5-O, NCIS.

And you know, CBS had a stronghold on the studios, which is what they're building, they're built to do, but they all are. They're not here anymore. They just left on June 24th of last year. They packed up and they left. And the ratings were decent. So that wasn't a ratings issue.

It was just a policy issue for Paramount. And that really impacted Hawaii. Those jobs that they used to work in, all of these different site works and everything else are not there. The proud moment of that is we have Rescue High Surface, which is production that is all produced.

The executive producer, the producers, most of the actors, they're all here from Hawaii. And that is what this body and the Senate kept pushing to make sure that that's what productions that come to Hawaii hire local people and they don't bring in people from the mainland that when we can do some of these jobs here in Hawaii.

So those are some of the outstanding things that are happening. But as we've said before to this Committee and the Senate is the productions follow tax credits. Whether it's Georgia or Louisiana or New Zealand, they do follow the tax credits.

And I know philosophically, some of us may disagree on that, but since I've been in DBEDT, I hear from the, the producers that that's, that's what they look for. So, you know, hopefully we can get to a point where there's a balance, because I understand when the Legislature gives a tax credit, it's a big thing.

It's a really big thing. And I know for us at dbed, and some of the producers, like, you know, say, for example, Jason Momoa and Dwayne Johnson, when they do films, they tell their producers, we want to do it in Hawaii. And it's obvious they've done it here for many of their films.

And, and part of that is chasing these tax credits. So I would just say that those are two of the examples. I mean, if you look at the testimony, there are many, many more. But you know, I would say HTDC is another organization that helps small entrepreneurs get to where they want to be in the technology industry.

And I think I talked more than I should have, but I just wanted to make sure I was clear on the question.

Yeah, a follow up question to that creative industry and the film industry and you highlighted a number of big productions from a personal experience. We see a lot of need for like b-roll or photographs for. My son's a big gamer.

And I was just wondering if we've dug a little deeper in that creative industry area to help some of what the film industry is already doing and then continue to kind of stretch out the impact of, you know, the collection of the b-roll footage or stuff used for gaming.

Well, I mean, I know it wasn't intentional, but I thank you for the softballs because yes, we have. Deputy Director Dane Waker has been working very, very, very hard with. And when I first got to DBEDT, I mean, gamers, I'm like, well, gamers, they make a living doing that.

They make millions of dollars, some of these kids and they learn different skills that me growing up, you know, we wouldn't have that opportunity. So we are putting in promotional money. HTDC specifically is putting in money so that we can assist with these conferences and conventions that come to town.

We had Pokemon that was here. That was huge. I didn't know how many people. And they had this big tournament and there was hundreds of, in fact, thousands of people watching this in the convention center.

But worldwide, there were millions of people that watched these games and they play these games and, you know, that's the life that they want to go into. But I think if the kid, you know, my kids say that I don't want to be a gamer, they say, absolutely not. But it's a real thing.

So, yes, we are setting up programs for that. And the first part of the question, one was gaming and the other b-rolls. Okay. So we have an organization that sets up at the Sandbox in Kakaako, and they're called ICANN. And what they do is they train local.

It's all local kids and local people on productions, on script writing, on acting. I went there to a few of the classes, and that was all set up through Georgia and CID. And it really makes a big impact when they're there.

And then Jason Momoa comes rolling up and talks to them about what they can be, and he talks about his life story in Hawaii. And I think those are opportunities that when young people hear that, they feel like "I can do that, too." And I think that's the whole purpose of DBEDT and the film office and CID.

And, you know, I'm in a fortunate position. I, you know, thank you for the offense part, but it is, we have, you know, and we can do good and we're trying our best every single day.

It's, it's, we work hard, and I appreciate the support that you guys have all given us because it makes a big difference in the work that we do.

Great.

Thank you, Mr. Tokioka. Thank you, Chair.

Thank you.

Thank you for the question. Senator Kusch.

Thank you. Thank you for all your answers there. But Department of Taxation, please. Thank you.

You know, we're not withstanding the Council of Revenue projections we're going to get later this month, but have you seen any velocity change in TAT or GET collections or do you have any modeling going forward or any, any insight you could provide to this body about that?

Yeah, I mean, each month we have our preliminary statement of General Fund collections. And so that's shared with everyone. So really, you have the same information that we have. The numbers for February will be issued shortly. And honestly, I believe it's pretty flat compared to last month.

Beyond that, I can go back and ask my Tax Research and Planning Office if they have any further information, if you're looking for forecasts or something like that.

Well, I just wondered if, you know, if you had spoke about any. If you have any modeling. And then, of course, like, year over year changes or any trend lines that are standing out to you. Like you said, maybe revenues are flat month over month, but year over year is often a more helpful.

We provide data to the Council on Revenues, and in part, I think the state relies upon them for the forecasts. They're meeting in March next, well, this month, yeah.

Okay. So nothing you can provide to this body at this time?

Not at hand, no.

Okay. Thank you. No further questions Chair.

Any other questions, Members? Okay, thank you. Okay. Yeah, we're gonna recess. We're gonna try to see I think we got. Let me just see one more. Okay, we're going to recess for...

Oh, sorry. Go ahead. There's...we had a request from office...from OHA. They wanted to testify. Are they in the room? We're in questions. And you. This is out of order, but we'll let you go.

Aloha, Chair. Vice Chair. Members of the Committee, mahalo for taking me out of order. I wanted to. I'm Stacy Ferreira. I'm the CEO of the Office of Hawaiian Affairs, and I wanted to stand on our testimony and strong support, and I'm here to answer any questions, if you have any.

Okay, thank you. Yeah, we did that one first, so. Yeah. Okay. Okay, we're going to recess, and then we'll come back and we'll have. We'll make our recommendation, and then we'll vote after that. So a short recess.

Okay, we're going to reconvene the Committee on Finance for decision making on three bills. First up is House Bill 410 HD1 recommendation on this one is that we pass it out. It already has a defective date, so we're going to pass it out unamended. Any discussion? Okay, Vice Chair.

HB 410 HD1 recommendations to pass unamended. [ Roll Call] Recommendation is adopted.

Okay, thank you. Moving on to the next bill. House Bill 400 relating to the Judiciary budget. So all we're going to do with this one is we're going to defect this effective date. And then there was a small change in the CIP budget, but other than that it's all it technical changes after that. Any Discussions? Member?

Okay, HD1 HB 400 recommendations to pass with amendments noting the excused absences of Representative Hussey and Ward. Are there any reservations? Any noes? Recommendations adopted.

Okay, thank you. Moving on to the next bill. House Bill 300, the Executive budget. Okay, this one a little more complicated. Okay, so what we're going to do on this is I'm going to read off the changes that the Committee has, the recommendations that I'm making for the Committee to consider as changes.

If we're not going to do it at this point in time. And again, when I say this point in time, as we have discussed with, you know, BNF and others that are happening in the media and what's happening, the uncertainty of what's happening at the federal, federal level. This budget is based upon the January core. Right.

So it is optimistic at best. Right.

So but at the same time, we're going to put some things in there that we provisions that we think are necessary to at least have a discussion on if we, if I say, and I will say that we're going to $1 it that is either the information we got from doesn't line up with the Form A or doesn't or we're missing information from the departments or it may be moving in a bill too.

So we got to see if the bill passes and those kind of things. So that's all that means.

And even if we do not concur, we still have to go to conference with the Senate and the Senate may want some of these things, but like I said, in light of the current situation, we don't know until we see what happens with corn next week and then if there is a continuing resolution from Congress and how that's going to affect all of us.

So with that I'll read off some of the I'll read off the changes that we'll be doing. So first of all, first up is AGR Governor's Governor's message AGR 141 sequence 218001 change means of financing for seven positions and funds we're going to modify to $1.

Next is Governor's message AGR 141 sequence 180022 $1.0 million in FY26 in agricultural resource Management Revolving Fund we're going to modify to $1 Governor's message AGR 141 sequence 18003 increase seedling by $2,000,000 for both years for Agricultural Resource Management revolving Fund we're going to modify to $1.

Next up is on page and when I refer to the pages, this is the Governor's Budget on page 14 AGR 153 sequence 1, 0, 0, 0, 0, 1 aquaculture development for seaweed research modified $1. Page 15 AGR 171 sequence 60, 0, 0, 1 reduce one position and funds house does not concur.

Page 17 AGR 192 sequence 60, 0, 0, 1 reduce one position and funds house does not concur. Page 17 AGR 192 Sequence 100,001 farmer farm to school farm to food bank program modify $1 house adjustment AGR 192 sequence 1,100, 001 redescribe positions at one position 26,448 in FY26 and 101,688 in FY27.

Next AGS governor's message AGS 111 sequence 218, 001 precipitatory streaming of boards and Commission meetings modified to 2,550,000 in FY26 and 4,800,000 in FY27. On page 34 AGS 131 sequence 209, 001 data AI office and AI risk management tools for geospatial spatial license renewals modify four positions 1,613,000 in FY26,four positions at 2,160,000 in FY27.

On page 36 AGS 203 sequence 10001 insurance modify $1 on page 38 AGS 221 sequence 100,001 reduce positions and add funds for consultant services House does not concur House adjustment AGS 223 sequence 1100,0001 Kamehameha 3 Temporary school lease we're going to model we're going to add we're going to add 1,600,000 FY26 and 27 this is the lease.

This one was in the DOE budget. We're moving it to AGS where we think it's more appropriate.

On page 53 AGS 873 sequence 100, 001 positions and electronic filing system upgrade modified to two positions 2,115,000 in FY26 two positions 380,000 in FY27 on page 56 AGS 881 sequence 100, 001 capital pool and NASAID modified to 2 million in FY26 only for the capital pool.

On page 57 AGS 881 sequence 101, 001 consultant services for King Kamehameha Celebration Commission House does Not concur.

Page 57 AGS 881 sequence 201, 001 consultant and services for State foundation of Culture and Arts. House does not concur. On page 58 AGS 891 sequence 100, 001 enhanced 911 board special funds ceiling modified to $1 on page 68 moving to the Attorney General ATG 100 sequence 105, 001 litigation expense modified to $5 million.

On page 68 ATG 100 sequence 106, 001 fringe benefits modified to 442,412. On page 69 ATG 100 sequence 109, 001 fringe benefits modified to 96,912. On the Four DBEDT governance message BED sequence 218, 001 East West Center modified to $1 house adjustment BED sequence 1100 add funds for other current expansions 400,000 in FY26.

On page 84 BED 103 sequence 3001 transfer in land use commission. House does not concur. Page 92 bed 113 sequence 6100 HTA Administration and government adjustment modified to $1. Page 95 BED 114 sequence 100,001 HTA branding and marketing program adjustments modify $1

GM BED 1, 1, 1, 1, 4 sequence 218 allotment and funds for HTA branding and marketing modified to $1. Governor's message BED 114 sequence 218, 002 funds for Japan major market area modify $1. Page 96 BED 115 sequence 3, 0, 0, 1 consolidation of HDE sports and signature events for BED 116. House does not concur.

Page 98 BED 116 sequence 30, 0, 0, 1 consolidation of BED 115, BED 117, BED 118 and BED 116. House does not Concur. Page 99 BED 116 sequence 001 HTA destination stewardship and community adjustments modify $1. Page 1011 BED 117 sequence 3, 0, 0, 1 consolidation of HTA regenerative tourism development with BED 116. House does not concur.

Page 102 BED 118 sequence 3001 consolidation of HTA workforce development with BED 116. House does not concur. Page 104 BED 120 sequence 100, 001 salary adjustments modification we're going to modify to 33,903 for both year fiscal years. Page 105 BED 120 sequence 101, 001 salary adjustments for Hawaii State Energy Office Chief Energy Officer Mark Modify $1.

Page 108 BED 142 Sequence 100, 001 Sports Tourism Manager Manager Modify $1. House Adjustment. BED 142 Sequence 110, 0001 Military and Community Relations Office 650,000 in FY26 and 27. House Adjustment. BED Sequence 1100 Accelerator Program $1,000,000 in FY26 and 27.

Page 112 Bed 144 Sequence 30, 0, 0, 1 Transfer out Land Use Commission to Bed 103. House does not concur. Page 118 BED 150 Sequence 100,0, 0, 1 Kakaako Makai Climate Change Assessment. House does not concur. This we're going to move into the CIP Budget. Page 119, 150 sequence 101, 001, 99. Year Leasehold Program modify $1.

Page 126 BED 180 sequence 100 Stadium Development Special funds ceiling. House does not concur. Moving on to budget and Finance. House Adjustment BUF101 sequence 1,100, 0, 0, 1 Add 5 Positions Permanent 5 Permanent Positions and Funds $465,084 in FY27 House Adjustments BUF sequence 110, 0, 0, 0, 1 at $200,000,000 in FY26 for the Emergency Budget and Reserve Fund.

Page 132 BUF 115 sequence 100,001 Accounting 6 Modified to 275,460 in FY26 and 272,460 in FY27 to correct salary amounts and add computer purchase.

GM BUF 141 sequence 218, 001 Add $1.8 million for pension admin.

System Modify $1. Page 146 BUF 1762 sequence 60, 0, 0 , 1 ARC Health Premium Payments. House does not concur. CCA ,Page 167 CCA 901 sequence 101, 001 Appropriate ceiling for wildfire related services Modify $1. Defense Page 172 Defense 110 sequence 100, 001 Ceiling for state and local cybersecurity grant program, House does not concur.

Page 173 DEF 110 sequence 105, 001 State Fire Marshal modify $1. Page 173 Defense 110 sequence 106, 001 Office of Recovery and Resilience modify $1. Page 174 DEF.

110 sequence 107, 001, Software and Services contracts modified to 880,657 Governor's message Defense 110 sequence 218, 001 at six positions for State Fire Marshal staff modified $1 Governor's message 110 sequence 218, 001 at one position and 100,000 for both years. House concurs. Page 278 DEF.

114 sequence 60, 0, 0, 1 Reduce one position and transfer funds to OCE House does not concur page 281 The F 116 sequence 100, 001. Full year salary modified changes and appropriations to 9496A funds and $46,720 P funds for both years. Page 183 DEF.

116 sequence 104, 001 Visitor Control Center. We're going to modify details on that for Department of Education. Page 206 EDN 100 sequence 109.122 Kamehameha 3 temporary school lease. House does not concur. We move that to DAGS.

Okay page 234 EDN 300 sequence 106, 001 Deputy Superintendent modified to 2 deputy Superintendent and 2 private secretary 2 to 715,406 in both years GM EDN 400 sequence 218, 001 $4 million for food and nutrition. House concurs. Page 258 sequence 600, 001 sequence 30, 0, 0, 1. I'm sorry.

EDN 600 sequence 30, 0, 0, 1 transfer all teacher differential to charter school Commission. House does not concur. Page 256 EDN 600 sequence 100, 001 per pupil adjustments we're just going to modify this number in FY26 and 27 on page 259.

EDN 612 sequence 3000 transfer in teacher differential from charter schools. House does Not concur. Page 256 EDN 612 sequence 100, 001 Teacher Differential. House does not concur. On page 259. EDN 612 sequence 101, 001 Hawaii Keiki Program. House does not concur. For the Governor's Office on page 263.

Gov 100 sequence 40,001 transfer out Office of Wellness and to DHerd. House does not concur. HHL Governor's Message HHL 625 sequence 218, 001 $2 million for personnel services modified to $1. HMS page 281 through 284 HMS 229 sequence 70, 001 convert 62 positions to W funds modified to $1. Page 268 to.

289 HMS 229 sequence 71, 001 convert 28 positions to N to W modified to $1. Page 290 HMS 229 sequence 72, 001 convert other current expenses N funds to W funds modify to $1.

Page 305 HMS 401 sequence 100,001 Ceilings for nursing sustainability Special Fund modified to non recurring. On page 305 HMS 401 sequence 101, 001 ceiling for hospital sustainability Special Fund modified to non recurring.

On page 306 HMS 401 sequence 105,001 child wellness incentive pilot program modified to non recurring. On page 309 HMS 501 sequence 101, 001 youth violence prevention modified to non recurring HMS 309. I'm sorry. On page 309 HMS 501 sequence 30 I mean 103, 001 sex trafficking victim support modified to non recurring on page 314.

HMS 777 sequence 100, 001 Kauhale modified to $1. Pn page 315 HMS 777 sequence 101, 001 other current expenses for statewide Office of Homeless and housing solutions modified $1. On page 321 HMS 902 sequence 100, 001 ceiling for hospital sustainability Special Fund Administration portion modified to non recurring.

On page 322 HMS 902 sequence 101, 001 ceiling for nursing sustainability Special Fund Administration parser modified to non recurring. On page 224 HMS 903 sequence 101, 001 Stamp Smart Food Program. House does not conclude. Moving on.

To HRD Governor's message HRD 102 sequence 218, 001 adds 750,000 for FY26 for classification and compensation Study. House concurs. Page 340 HRD 191 sequence 101, 001 furniture replacement project modify to make non recurring.

On page 313, 341 HRD 200 sequence 40, 001 transfer in Office of Wellness and Resilience from Gov. House does not concur. Page 341 HRD 200 sequence 101 Other current expenses for Office of Wellness and Resilience, House does not concur. Page 342 HRD 200 sequence 101,001 State of well being project for Office of Wellness and Resilience. House does not concur.

Page 342 HRD 200 sequence 102, 001 Office of Wellness Personnel Services Adjustment. House does not concur. Governor's message for HRD 200 sequence 218, 001 $40,804 for FY26 and FY27 for Personal Services adjustments. House does not concur. Department of Health.

Page 345 HTH 100 sequence 60, 001 reduced positions and funds. House does not concur. Page 347 HTH 100 sequence 100, 001 Kalaupapa positions personnel services adjustment modify to $288,150 for FY26 and 323,388 for FY27 to reflect six months portion of salaries for three positions already in base.

On page 347hth 100 sequence 102, 001 other current expenses for Public health Nursing Branch there's modification to the details. Page 353 HTH 211 sequence 100,001 transportation van. House does not concur. Page 355 HTH 212 sequence 100, 001 operating subsidy for HHSC regions we're going to modify to $80,545,400 in FY26 and $69,597,400 in FY27.

Page 360 HTH 420 sequence 60,001 reduce positions and funds. House does not concur. Page 361 HTH 420 sequence 620, 001 reduced positions and funds. House does not concur. Page 370 HTH 430 sequence 60,001 reduced positions and funds. House does not concur.

There's a House adjustment for HDH 430 sequence 1100, 001 Add three to add three permanent positions and $103,045 in FY26 and $206,090 in FY27 for InfoTech unit. On page 373 HTH 440 sequence 60, 001 Reduced positions and funds. House does not concur. Page 375 HTH 460 sequence 20,001 Trade off of funds. House does not concur.

Page 376 HCH 460 sequence 20,002 Trade off funds. House does not concur. On Page 378 HCH 501 sequence 60, 001 Reduced positions and funds. House does not concur. Page 381 HTH 560 sequence 60, 001 Reduced positions and funds there's we're going to modify to reduce one perm permanent FTE and $41,472.

On page 383 HTH 560 sequence 71, 001 Hawaii birth defects program we're going to modify to $100,000 non recurring. Page 383 HTH 560 sequence 100, 001 adds to add funds for family health services modified to 1.5 million in FY26 and FY27. Governor's message for HTH 560 sequence 218, 001 to add 200,000 for FY26 and FY27 for family health services. House concurs.

Page 387 HTH 590 sequence 22, 001 trade off positions and funds we're going to Modify to reduce one temporary FTE and $625,853 for FY26 and FY27. Page 388 HTH 590 sequence 22-002 trade off positions and funds.

We will modify to add one temporary FTE and $625,853 for.

FY '26 and FY '27. Page 395, HTH 610, sequence 60-001, reduced positions and funds. House does not concur. Page 400, HTH 720, sequence 11-001, trade off positions and funds. We'll modify to reduce one permanent FTE only. On Page 401, HTH 720, sequence 100-001, add funds for contracted services. We're going to modify details to match the provided breakdown.

House adjustment for HTH 730, sequence 1100-001, to add $1,750,000 in FY '26 for Makalei Ambulance in North Kona. Page 407, HTH 840, sequence 62-001, reduced funds and positions. House does not concur. Page 408, HTA 840, sequence 102-001, accessible conversion. We're going to modify to $1. Page 410, HTH 849, sequence 61-001, reduced positions and funds. House does not concur.

Page 418, HTH 907, sequence 60-001, reduced positions and funds. We will modify to reduce $40,248 for FY '26 and FY '27 only. Page 418, HTH 907, sequence 61-001, reduced positions. Modify to reduce one permanent FTE only. Page 419, HTH 907, sequence 100-001 for Kinalhale relocation, modified to $1.

Page 419, HTH 907, sequence 100-001, human resources office, modified to add four permanent FTE and $153,576 in fiscal year '26 and $300,152 in FY '27. Page 420, HTH 907, sequence 103-001, Hawaii District Health Office. House does not concur. Page 420, HTH 907, sequence 104-001, Kauai District Health Office. House does not concur. House adjustment for HTH 907, sequence 1100-001 and 943.

Oh, sorry. Add, sorry, HTH 907 sequence 1100-001 to add $934,000 in FY '26 and for other current expenses.

Okay, thank you.

Okay, continuing on with law. Page 426, Law 503, sequence 101-001, Deputy Sheriff's fringe benefits modified to $1.

Page 427, Law 503, sequence 102-001, Wahiawa District Court and Civic Center modified to $1. GM Law 503, sequence 218-001, change means of financing for 30 positions from U to A. House concurs. GM Law 504, sequence 218-001, add one permanent special funded investigator five for Criminal Investigation Division. Modify to change means of financing for existing investigator five from B to A. GM Law 504, sequence 218-002, add 8 permanent FTE and $5,042,937 in FY '26 and $2,292,014 in FY '27 for explosive and firearm enforcement section. Modify to $1. GM Law 900, sequence 218-001, add $1,000,000 in FY '26 for fireworks program. Modify to $1. GM Law 900, sequence 218-002, add $2,000,000 in FY '26 for firearms and explosives laboratory. Modified to $1. Labor, Page 449, LBR 183, sequence 100-001, disability compensation division modernization project. Modify the details to $2,826,373 in FY '26 and $3,132,322 in FY '27. GM LBR 902, sequence 218-001, add $720,000 in FY '26 and FY '27 to implement the Hawaii Retirement Savings Program. Modify to $720,000 for FY '26 and $445,000 for FY '27. House adjustment.

LBR 903, sequence 1100-001, add $10,000,000 for FY '26 for legislative grants in aid as a placeholder. LNR. Page 463, LNR 172, sequence 100-001, forestry resource management modified to $1. Page 467, LNR 402, sequence 61-001, reduced positions and funds. House does not concur.

Page 468, LNR 402, sequence 101-001, fire protection program. Modify details and change appropriation to $1,432,728 in both fiscal years. Page 468, LNR 402, sequence 102-001, Hawaii Invasive Species Council. Modify details and change appropriation to $3,250,000 in both fiscal years. Page 469, LNR 402, sequence 104-001.

Fire response and rehab and fuels reduction modified to $7,425,000 in FY '26 and $4,530,000 in FY'27. Page 473, LNR 405, sequence 101-001, other current expenses for DOE Care. Modify details. Page 474, LNR 405, sequence 102-001. Conservation and resources enforcement. Modify appropriation to $512,875 in both fiscal years.

Page 475, LNR 407, sequence 60-001, Maui access...modified to $3,790,000 in FY '26 and -$4,165,000 in FY '27. Page 479, LNR 802, sequence 100-001, ceiling adjustment for federal funds. Modify details. Page 480, LNR 804, sequence 60-001, reduced positions and funds. House does not concur. House adjustment. LNR 909, sequence 1100-001.

Add 7 temporary positions and transfer $730,000 in both years from other current expenses to personal services. PSD, no changes. Keep going?

I'll take, yeah, I'll take it from here. Okay. Governor's mention, tax 100, sequence 218-001, $100,000 in FY '26 for Tax Commission. House does not concur. Page 533, tax 107, sequence 101-001, direct file program modified to six positions, six perm FTE $282,296 in FY '26 and $564,592 in FY '27. Page 533, tax 107, sequence 102-001.

Software development modified to one position—one permanent FTE, $65,000 in FY '26, and two permanent position, $205,000 in FY '27. On page 534, tax 107, sequence 103-001, special enforcement section modified. We're going to modify details. House adjustment, tax 107, sequence 111-001. This is the adjustment from the first one that we said we're going to—instead of $100,000, we're going to make it $200,000 for the Tax Review Commission.

Moving on to Department of Transportation on page 536, trans 102, sequence 100-001. Airport operation controllers modified to $239,663. On page 538, trans 102, sequence 104-001, extendable boom lift. House does not concur.

Governor's mentions, trans 102, sequence 218-001, transfer out positions and reduce $111,349 from the Daniel Ke Inouye to Honolulu Harbor. House concurs. Page 141, trans 104, sequence 100-001, aircraft rescue firefighting operations modified to $3,053,000 in FY '26 and $1,093,000 in FY '27. Governor's message, trans 104, sequence 218-001, $3,053,000 in FY '26 and $1,093,000 in FY '27 for aircraft rescue fighting operations.

House does not concur. On page 143, trans 111, sequence 100-001, airport operation controller positions modified to 20,625. On page 546, trans 114, sequence 101-001, airport operation controller positions modified to 66,204. On page 553, trans 131, sequence 100-001, airport operation controller positions modified to 76,595.

Governor's message, trans 141, sequence 218-001, transfer out one position and reduce $62,110 for Molokai Airport to Administration Administration. House concurs. On page 565, trans 161, sequence 100-001, airport operation controller positions modified to 63,803.

Governor's message, trans 195, sequence 218-001, transfer in one on perm FTE and add $103,440,477 for airport administration for Molokai Airport. House concurs. Governor's message, trans 195, sequence 218-002, $1,020,000 in both years for annual maintenance and office, office automation solutions. House concurs. Governor's message, trans 195, sequence 218-003, $600,000 in both years for cybersecurity services and software. House concurs.

Governor's message, trans 195, sequence 218-004, $600, 000 in FY '26 and $200,000 in FY '27 for terminal map application and way finding technology, modified to $1. Governor's message, Governor's message TRN 195, sequence 218-005, $6,044,600 in FY '26 and $4,032,000 in FY '27 for TSA Aviation Workers screening equipment acquisition, installation, and maintenance.

Modified $1. Governor's message 195, sequence 218, transfer out 1 perm FTE and reduce 74,154 for airport administration to Honolulu Harbor. House concurs. GM TRN 195, sequence 218-007, add $2,020,5354 in FY '26 for Customs and Border Protection IT equipment.

House concurs. On page 574, trans 301, sequence 100-001, Deputy Sheriffs modified to $1. Governor's message, trans 301, sequence 218-001, transfer in three positions, three perm positions, and add 277,901 in both years for the Daniel K. Inouye Administration and Hawaii highway—and Hawaii highways. House concurs.

Governor's message, trans 301, sequence 218-001. $350,000 in both years for deputy sheriffs, modify $1. Governor's message, trans 331, sequence 218-001, transfer in 1 perm—1 perm FTE—and add $62,110 for Kahului Harbor and Highways Administration. House concurs. On page 590, TRN 395, sequence 103-001, redescribe positions. House does not concur.

Governor's message, trans 395, sequence 218-001, $1,000,000 in both years for geographic information system, GIS. Modified to $1. At page 593, TRN 501, sequence 60-001, reduction of vacant positions modified to -6 perm FTE. Governor's message, trans 501, sequence 218-001, 3 perm FTE. House the not concur.

Governor's message, trans 511, sequence 218-001, transfer out 1 permanent FTE and reduce $92,398 for Hawaii highways and two Honolulu Harbor. House concurs. GM Trans 561, sequence 218-001, add $600,000 in FY '26 for a 30-ton excavator with mulching attachment. House concurs. GM trans 561, sequence 218-002, $280,000 in both years for traffic cyber—for traffic signal fiber optic service.

House concurs. On page 617, trans 595, sequence 64-001, reduced vacancy—vacant—positions, modified to -16 FTE. Governor's message, trans 595, sequence 218-001, transfer out 1 perm position and reduce $62,100 from 4 highways administration to Kahului Harbor. House concurs. Governor's message 595, sequence 218 , reestablish and deletion of long-term vacant positions. House does not concur.

Governor's message, TRN 595, sequence 218-003, $1,941,713 in FY '26 for bond payment pawn rebate payment from highway revenue bonds, for highway revenue bonds. House concurs. Governor's message, trans 595, sequence 218-004, at $200,000 in both years for traffic management center. House Concurs.

Governor's message, trans 595, sequence 218-005, add $910,000 in FY '26 and $300,000 in FY '27 for Atomic, Atom, Maintenance Management System. House concurs. Page 629, TRN 995, sequence 100-001, fringe benefits for FY '26 and $27,219 for FY '27 and $98,469. On page 630, TR oh, modify to oh, I'm sorry, modify FY '27 to $27,219.

On page 630, TRN 995, sequence 105-001, add funds for Volunteer Youth Council on Transportation. Modify FY '26 and '27 to $125,000. Governor's message 995, sequence 218-001, reduce -$375,000 in FY '24 for Volunteer Youth services. House does not concur. For the University of Hawaii, Governor's message, UOH 100, sequence 218-001, $75,000 for Paumatasan Council, modified to non-recurring.

Governor's message, UOH 100, sequence 218, add two position in FTEs, $400,000 for your Hero. For your hero. This is for that study. Okay. Governor's message, UOH 100, sequence 218-003, add $12,800,000 for athletics. House concurs. Page 461, UOH 110, sequence 100-001, John A. Burns School of Medicine, modify to non-recurring.

Page 264, UOH 115, sequence 100-001, University Cancer Center, modified to non-recurring. Governor's message UOH 210, sequence 218, add $200,000 in both years for rat lungworm research. Modified to $1. Governor's message UOH 210, sequence 218-002, add $300,000 in both years for athletics. House concurs. UH 800, sequence 218-001, $175,000 for Pamatoson Council, modified to non-recurring.

UH 900, sequence 218, add two permanent positions. $150,000 in both years for the PEACE Program. Modified to $1. House adjustment. UOH 900, sequence 110-001, $179,780 for both years for the Ihoana Moelelo Program. And that's it for the operating budget. Representative Kitagawa.

Thank you very much. Thank you, Chair. I'd just like to first by start, start off by first saying thank you to the Committee for allowing me to take the lead on CIP this year. It has been a great opportunity and learning experience for me as we've gone through the CIP budget.

Thank you also to Chair Yamashita who for many years has been the CIP Chair, so he was able to provide a lot of insight and help for me. And then, thank you also to Vice Chair Takenouchi for all of her hard work with this budget.

I'd also like to thank my staff, so Wendy, who's my Office Manager, and Ryan, my CIP Finance Staff, for all their hard work and the many hours we have spent together working on this CIP budget.

Thank you also to all of the departments for working with us and providing us with the information and details that we needed. This House Draft is a work in progress, and we will continue to have discussions with all of you as we move forward in this process.

So, this bi-annual CIP budget includes about $1.9 billion in general obligation and general obligation revolving funds—revolving bonds, sorry—and about $6 billion when you consider all means of bond financing. This CIP budget includes many important items to help our state address the many needs that we have and prioritizes health and safety, affordable housing, and education.

You'll see larger lumps, larger amounts of funding, CIP funding, for those areas. So, you've now—Committee received the handouts which include a CIP highlights sheet, as well as the CIP budget. For the CIP budget, please note that the amounts listed are listed in thousands, so you'll need to add three zeros after them.

We just could not fit all of the zeros on the paper. So, that's sort of a highlight. And you can look through these documents and if you have any questions, feel free to reach out to me and ask me on any of the items that are listed. Thank you very much.

Okay, Members, we're going to take a really, really, really short recess for you to digest some of this and then we're going to vote. Short recess.

Okay. We're going to reconvene the Committee on Finance. Those were the recommendation, Members, any discussion? Okay, so as I said, what we read off was the adjustments that the Finance Committee made.

This is a work in progress, as we know, and I'll restate it that the Council of Revenues will be meeting next week. This budget is based upon the January core. We did go over a little bit, but it's because we put that $200 million into the Budget Reserve Fund.

But that is just to send a clear message that the House believes that in light of the current situation, and we don't know what the out years will be, it'll be wise for the state to tuck away some money just for the out years. So, that is just to set up a statement.

So, like I said, this budget goes actually over a little bit. But, but it, it is just to be clear that we think that is important. Any discussion? Go ahead. Representative.

Just comment. I, I just really wanted to take the opportunity to thank you, Chair, and your staff. I think on Saturday when we went through line by line, in my years of experience in government and architecting a budget, it was absolutely superior to anything that I've ever gone through.

And so, I just really want to thank your staff for taking the time to work with all the departments. And actually, I found it very well done, but also, highlighting some of the, the edits that we had to modify were actually what staff caught because the spreadsheets that were coming over, their formulas weren't correct.

And so, we found those things and we really did put together a budget, as you mentioned, that was based on revenues from a few months ago, but also, really are looking out for what the Federal Government might have in store for us.

It was tough, and—but I do think we have a very sound budget going forward that looks around the corner a little bit for what the future might hold. So, thank you very much.

Thank you for the discussion, Members. Okay, thank you very much. HD 1 is always the—I always tell people it's the easy one because we have total control. Right? When we get into conference, we're going to be meeting with the Senate, they're going to have their opinion, we're going to have to deal with the new council numbers.

So, that's where it gets difficult. That's where we actually got to start sharpening our pencil a little bit more. So, anyway, Members, we'll—ready for the vote? Okay, Vice Chair.

[Roll Call]

Okay, thank you very much. We are adjourned.