House Floor

Will the house come to order? Mr. Clerk, please call the roll.

[roll call]

Madam Speaker. 47 Members are present. 4 are excused.

Thank you. Item number 2. Reading of the journal. Representative Morikawa.

Madam Speaker, may this matter be deferred?

So ordered. Item number 3, messages from the governor. Mr. Clerk, are there any messages from the governor?

Yes. Madam Speaker, we are in receipt of governor's message number five, providing amendments to insert an emergency appropriation to fund the Department of Corrections and Rehabilitation and requesting the immediate passage of House Bill Number 1153, House Draft 1. We are in further receipt of governor's message number 6.

Requesting the legislature consider House Bill Number 341, House Draft 1, Senate Draft 1. Relating to the issuance of special purpose revenue bonds to assist Hawaii Island Community Health Center. May these matters be received and filed.

So ordered. Item number four, senate communications. Mr. Clerk, are there any senate communications?

Madam Speaker, there are none.

Introductions. Members, are there any introductions? Representative Tarnas.

Thank you. Madam Speaker. I would like to take this opportunity to give my words of gratitude to my staff for their support through session and for showing up today to celebrate some music. If you could stand and be recognized. Sean. Chris. Kalei. Evan. Makhani. Tory.

Thank you all for your hard work and welcome to your House of Representatives. Thank you.

Representative Quinlan.

Thank you. Madam Speaker, it is my honor and privilege today to introduce the friends and family of one of our honorees, Jessica Dos Santos. Jessica is not just one of my favorite constituents, she's also a fear fierce advocate for our community and for our natural environment. So, friends and family, please rise when I call your name.

El Pidio De La Cruz, Dico Dos Santos, Angela Wong, Alyssa Santos and Neil Bowers from the Hawaii Technology Academy. Welcome to your House of Representatives.

Representative Todd.

Hi. Today we also have family members for one of our honorees from East Hawaii, Denise Mazurek. Today we have her husband Mark and daughter Kiara. If they're here, please stand. Welcome to your House of Representatives.

Representative Perruso.

Thank you, Madam Speaker. Today we have with us in the chamber three important members of the PACE Commission. And PACE stands for the Promotion or the Commission to Promote and Advance Civic Education. So I'm really grateful that the chair of the Commission, Justice Lisa Ginoza, has joined us today. If you could stand, please.

And we also have Commissioners Rosanna Fukuda, please rise. And Matt Matisse, if he's with us, I think he had to leave early, but mahalo for joining us. And I'd also like to welcome Maui High School Principal Ty Ogasawara. Thank you for joining us. Welcome to your House of Representatives.

Representative Takenouchi.

Thank you, speaker. Members, today in the gallery, we are joined by the CEO, staff and students who are champions of youth mental health from the Honolulu, Hawaii island, and Maui YMCAs. Could you please all rise? At the YMCA, they are a lifeline for youth facing mental health challenges.

Their dedicated staff and passionate students are the heart of the Wise Teen Mental Health and Wellness program which launched in 2023. They address the urgent need. There are 10,000 teens in Hawaii struggling with depression, and yet 69% receive no care.

The goal of these important ambassadors are to import empower more than 4,000 children and teens, especially those impacted by the Maui wildfires and pandemic stress, with tools to manage their mental health, build social connections, and improve overall well being. Please join me in welcoming them to the House of Representatives.

Are there any further introductions? Okay, then, let's move on to the order of the day. Item number five, floor presentations. Mr. Clerk, are there any floor presentations?

Yes, Madam Speaker. We have one floor presentation today. House Resolution number 205, recognizing and honoring outstanding educators Janice O' Mora, Jessica Dos Santos, Denise Mazurek, Imai Kalani Winchester, and Richard Ornelas during Civic Learning Week for their work in promoting and advancing civic education in the state. This resolution is offered by Representative Perruso.

Representative Perruso.

Madam Speaker, I move to adopt the resolution.

Representative Woodson.

Madam Speaker, I second the motion.

It has been moved and seconded that the resolution be adopted. Any discussion? Representative Perruso.

Thank you, Madam Speaker. It is an honor in the midst of Civic Learning Week to introduce four outstanding educators recently recognized by the Hawaii State Commission to promote and advance civic education.

The work of the PACE Commission underscores the truth that we understand in this chamber. Democracy requires the active participant of informed citizens, and that foundation is laid in our classrooms by dedicated educators.

It is my privilege to introduce the first two extraordinary 2025 PACE outstanding educators who have dedicated their careers to civic education, student empowerment, and community leadership. Denise Masrick of Waiakea Intermediate School and Jessica Dos Santos of Hawaii Technology Academy.

Denise Masrick, through her leadership in the Global Scholars Program at Waiake Intermediate, has created unparalleled opportunities for students to engage with the world and to discover their potential for meaningful change.

Her dedication to fostering student confidence and leadership both in and out of the classroom has ensures that her students develop the tools that they need to be thoughtful, engaged citizens. Her work reminds us that civic engagement can take many forms, from creative expression in theater to innovative approaches in global issues and critical thinking. Thank you, Denise.

Jessica Dos Santos has created a classroom environment at Hawaii Technology Academy where students can explore history, governance, and civic life in a way that is both engaging and relevant. She encourages thoughtful discussions, helping students navigate complex social issues with a sense of responsibility and a respect for different perspectives.

By grounding her lessons in inquiry and real world application, she ensures that students leave her classroom with the confidence to engage meaningfully in their communities. Mahalo Jessica for your service. I yield to my colleague from Molokai.

Thank you, Madam Speaker. Today I am honored to recognize two exceptional educators who embody the very best of civic education in Hawaii, Richard Ornelas of Molokai High School and Janice Omura of Maui High School. Richard Eric Ornelas has dedicated his second career to empowering students as a special education and social studies teacher and a class advisor.

Tirelessly advocating for every child's success beyond the classroom, he has bridged education and future opportunities for Molokai's youth through his work with the National History Day, the Molokai College and Career Club, or MC3, and by guiding transformative journeys to Washington, D.C.

Most importantly, Mr. Ornelas co organizes the Molokai Youth Summit and has broadened students horizons and cultivated critical leadership, enhancing civic education on campus. Mahalo, Rick. Janice Omura has spent decades fostering a deep sense of civic responsibility among her students.

Through her leadership in PAC and Interact Club, she has created opportunities for students to explore global perspectives, engage in service learning, and develop an appreciation for the role they play in their communities.

From her commitment to the National History Day program to her critical role In Maui High School's recognition of as one of the first two Hawaii Schools of Democracy, Ms. Omora's work exemplifies the importance of guiding students to think critically, communicate effectively and contribute meaningfully to society. Mahalo, Janice. Madam Speaker, I yield to my colleague from Wahiawa.

Madam Speaker, before we conclude, I want to acknowledge that the final 2025 PACE outstanding civic educator Ima Kalani Winchester from Halau Kumana could not join us. So we will be presenting his certificate at his school. And I'd like to thank the guests in the gallery who have joined us to recognize all the Civic Learning Week awardees.

Welcome to your House of Representatives and, Madam Speaker, I request that their names be inserted into the journal if they have not already been entered.

So ordered. We're going back to the to the resolution. All those in favor say I. All those opposed? The motion is carried. Representative Perruso, please proceed with the certificate and lay presentation. The chair will call a recess to allow members of the house to meet and congratulate the honorees. Recess.

Will the house come to order? Item number six, unfinished business. Representative Morikawa for the motion to suspend the rules.

Madam Speaker, I move to suspend the rules of the house in order to consider certain house bills for third reading by consent calendar.

Representative Garcia.

Madam speaker, I second the motion.

Any questions? Oh, excuse me. All those in favor say I. All those opposed say no. The motion is carried.

Representative Todd.

Madam Speaker, I move to adopt Standing Committee report number 1171 as listed on page two, and that the accompanying House Bill, as amended, pass third reading.

Representative Morikawa.

Madam Speaker, I second the motion.

Any discussion on HSCR 1171? Representative Morikawa for the vote.

Madam Speaker, on the measure before us, all majority members vote I.

Representative Garcia.

On the measure before us, all minority members vote I.

Have all votes been cast? Said house bills pass. Third reading, item number seven.

Third reading bills. Representative Todd.

Madam Speaker, I move that house bill number 300 HD1 as listed on page two. Pass third reading.

Representative Morikawa.

Madam Speaker, I second the motion.

Any discussion on this item? Representative Yamashita.

Thank you very much, Madam Speaker.

Madam Speaker, I rise in support of House Bill 300, HD1. First of all, I'd like to thank you, Madam Speaker, for allowing me the honor and responsibility of leading your Committee on Finance through these challenging times. I'd like to thank you, the vice speaker, your leadership team, for their support and guidance through this process.

I'd also like to thank the chairs of the committee for their input and counsel on many of the items that are before us in this measure, as well as the members on this floor.

I'd like to thank the departments for their input in helping us understand and craft this budget, as well as BNF Director who's up there today. Thank you very much. I only. Out of all of the directors, you're the only one, so I make note of that. And then mostly I'd like to. Not most.

Well, mostly I'd like to thank the Vice Chair of Finance who has been a great partner through this process and has come up to speed really quickly and she put in a lot of long hours with me and with our staff to craft this budget as well as going through the bills.

And so I'd like to thank her for her support. And speaking of partners, I'd also like to thank my former partner and still on the committee, but now she's handling a different role, our CIP manager and all the hard work that she has put in into the budget.

I have done that responsibility in the past and it is something that takes a lot of time and effort, not only council, the members of the house, but also with the departments. And so I thank her for all her hard work and, just so you know, that was the easy part. Gets harder from here.

And then the, as far as you know, our GIA manager also who's not present, but I'd like to thank him. He has started the process and his work will continue and I thank him for all the work that he will be doing for our committee and as well as the members of the Finance Committee.

Thank you very much for spending the long hours. We went through five day recess and we went over the budget item by item and their input was greatly appreciated. So, members, I thank you for your participation and your dedication and your commitment to giving of yourselves and the time it takes to be a member of finance.

I also like to thank our people, our staff on the finance committee. First of all the budget staff who was critical in putting together this measure led by our budget chief John Karamoros up there and then his budget analysts, his team. Elizabeth, I can't see them all but they're up there. They're too far away.

Elizabeth, Brandon, Jamie, Danielle and Jayden, thank you very much for all your hard work. I really appreciate that and also the hard work of our CIP analyst, right, Ryan Kagemoto, and I know how much work it takes to do all of those things. So thank you budget staff as well.

I also, I see up there some, I don't see Randall, but the research staff led by Rando Hioto, our budget chief, I mean research chief, sorry, and the supervisor, Stacy Tagala, and the budget analysts, I'm sorry, the research analyst up there, Kenneth, Allison, Jacob, Diane and Shane. Thank you for all your hard work. I really appreciate it.

As well as our front office team led by my office manager Lois Tombalo and her team Dallas, Noye, and Matthew. Thank you for doing all the things that need to be done, that needs to be covered and get done. So thank you very much. There's a lot of little details. We appreciate that.

I also like to thank our special projects person, I would call him. He works in our research office, Craig Urai, who has take a huge cut in pay to come and work in finance by the way. And and also Linda Chutakayo, who is volunteering as also working on special projects for finance and I really appreciate that.

Madam Speaker, may I yield? May I yield my time.

So ordered.

Thank you very much. And then last but by no means least are Committee Clerk Nandana Kalupahana and you know, keeping us together and giving us insights of his years and years and years on finance. So I really appreciate that. With that, Madam Speaker, I'd like to have a few comments on the budget.

By the way, can everybody give my budget staff a hand? Thank you. Okay, we ended. Madam Speaker, we ended the 2024 session answering the call of many challenges thrown our way. We provided the framework for the Maui Wildfire recovery as well as strengthening our state's biosecurity.

We established a path forward improving the cost of living and the quality of life of our vulnerable population by doubling the standard deduction and restructuring the tax brackets so that they will see more money in their paychecks. We ensure that minimum wage earners would not be paying middle income taxes.

The 2025 session began with uncertainty and it continues to show signs of major headwinds and challenges ahead. In a February 28, 2025 report issued by the Economic Research Organization at the University of Hawaii, the author warned that, and I quote, Hawaii's economy economic growth is threatened by federal disruption.

While tax cuts may have provided some stimulus this year, the administration's actions, including tariffs, massive deportation, and spending cuts, will impose significant drag. The clearness of near term risks in the federal layoffs which will result in a loss of more than 2,000 local jobs, fully offset the growth in construction and the lift from local tax cuts.

Together with other federal policies, this places Hawaii's economy at risk of recession over the next few years. End quote. House Bill 300 HD1 reflects the priorities of your House Committee on Finance to craft a responsive and responsible budget dedicated to supporting the safety net and core programs which which will prepare us ourselves for the difficult decisions ahead.

The picture will become clearer for us as the Council of Revenue meets this afternoon. The revenue projection they adopt will set the parameters for the budget we will need to enact this biennium.

Equally important will be the actions of our congressional and president of congressional and presidential actions in the coming weeks as the federal budget is being developed. Last week we passed numerous bills that would require funding to the Senate and the Senate has done the same. The reality is we may not be able to afford all those initiatives.

We have important decisions to make in the coming weeks to ensure that the lives of our residents are improved despite the headwinds we face. The budget is a starting point for conference deliberations next month. It reflects the House priorities as we make careful and responsible decisions to prepare for uncertainty of the federal action.

This is why the house draft of the state budget before you dedicates funding for horse services, safety net programs, and sets aside $200 billion to enhance our reserves to withstand future funding pressures.

While the tasks ahead may seem overwhelming, we have the tools and options necessary to ensure a responsible budget that will take us into the interim and prepare us for the 2026 session.

This budget reflects the first step of the house and I thank the House Finance Committee and staff for their hard work in crafting a well thought out budget and I respectfully ask that my colleagues support the this measure. Thank you and I yield to the Vice Chair.

Sorry, Madam Speaker, in support. Just quickly. I do want to extend my thanks and gratitude to the chair as well for and the body for allowing me this opportunity to serve as vice chair of finance. I am really learning a lot.

Thank you to the finance staff for helping me to get caught up and to my own staff for dealing with my hecticness. We have Kaylee, Kylie, and Taylor in the audience as well as my office manager Kelton watching.

Madam Speaker, today more than ever we are realizing the importance of solidifying our social safety net programs to uplift our communities and ensure our most vulnerable residents are protected and cared for.

This budget does that by providing $3.5 million annually for modernization of the Comprehensive Child Welfare Information System, $29.5 million to ensure higher reimbursement rates for medical professionals, ensuring that our doctors and healthcare providers can continue to serve Hawaii's communities.

It has $6.5 million annually for applied behavioral analysis services to increase provider rates and continue assistance to those who rely on Medicaid $14.1 million annually for in home home care and community based services $1 million annually to support youth mental health services $3.5 million annually for our summer Electronic Benefits Transfer Program to reduce food hunger when school is not in session, $2 million annually for a new Benefits Eligibility Solution system to process claims, and $605,000 annually for family resource centers to foster growth between incarcerated parents and their children.

This budget also invests in prioritizing successful reintegration for individuals in our criminal justice system by investing $4.1 million annually for reentry services to connect offenders with community based services as well as the necessary documents for their success and to address the growing safety concerns that we have all been hearing from residents across the state.

We have allocated $1.3 million in fiscal year 26 for the expansion of the Fireworks Task Force to provide additional support to reduce the illegal fireworks use we're seeing across the state. State there's also $825,000 in fiscal year 26 for the continuation of the successful gun buyback program to help reduce unwanted and illegal guns in Hawaii.

As well as $1.9 million annually and 20 positions for the Hawaii Emergency Management Agency to support large scale disaster response and project management. I now yield the floor to my colleague from House District 17.

Representative Morikawa.

Thank you, Madam Speaker. In support. Investing in education means investing in the future of Ike and this budget takes significant steps to strengthen our schools and the university system. 2 million annually and 13 positions for the Kaya Pune program, continuing our commitment Hawaiian language revitalization and cultural education.

20 million for summer school programs expanding learning opportunities for students. 10 million annually for skilled nursing services in schools supporting student health and well being. 1.7 million annually for student mental health and social emotional support programs. Recognizing the importance of mental wellness in academic success success.

3.9 million in FY26 and 3.6 million in FY27 for workforce readiness programs. 4 million annually to increase school security, providing safer schools for our children. 5.9 million annually for athletics, including the new flag football program. Additionally, we made investments in higher education, including 16.3 million for intercollegiate athletics at the University of Hawaii at Manoa.

9.5 million for the UH Cancer Center to ensure continuation of research, clinical trials, treatments and public health initiatives for the State of Hawaii. 179,378 annually for the E. Hoana Moolelo program. I now yield the floor to my colleague from House District 36.

Representative Lamosao.

Thank you, Madam Speaker. In strong support. In addition to what was mentioned from my colleague colleague of Waimea, I would like to also add that this budget invests to support Filipino and underrepresented students in higher education. It gives three permanent positions to the Pamantasan Council and $175,000 for the University of Hawaii at Manoa.

An additional 175,000 to our community colleges. Our natural resources are vital to Hawaii, Madam Speaker, and this budget invests in protecting them for future generations. It appropriates $7.4 million in FY26 and $4.5 million in FY27 for fire response and fuels reduction.

$3 million in FY26 for West Maui fire prevention at Ukumehame and 350,000 annually for Hawaii Mesonet for advanced weather monitoring. Also invest $1.1 million annually for DOE Care Officers and their equipment. Lastly, Madam Speaker, this budget invests $5 million annually for the Dam and Apparatus Improvement for Removal Grant program.

And now I now yield to my colleague from House District 20.

Representative Grandinetti.

Thank you, Madam Speaker. The house draft of the state budget demonstrates our commitment to ensuring that the roads and transportation infrastructure throughout our state are safe and reliable for our residents. The budget includes 6.6 million in fiscal year 26 and 4.2 million in fiscal year 27 for aircraft rescue firefighting operations.

23.8 million annually for security contracts providing safety and security in airports and on aircrafts. 71 million in 2026 and 65 million in 2027 for the airport Special Maintenance Program for continued smooth operations at our airports. 25 million annually for the harbor's Joint Service Intergovernment Service Agreement to coordinate projects between jurisdictions for efficiency and cost effectiveness.

It appropriates 30 million in 2026 and 35 million in 2027 for the harbor Special Maintenance Program ensuring uninterrupted operations at our harbors. 50 million in 2026 and 45 million in 2027 for the highway Special Maintenance Program for continued day to day maintenance of our highways.

15 million in 2026 for statewide fire mitigation, identifying alternative routes to be activated in an emergency clearing of flammable brush and the creation of firebreaks.

It also includes 5 million in 2026 for property storage and debris removal and and my personal favorite, 13 million in fiscal year 2026 and 400,000 in fiscal year 27 for safe routes to school. To identify, develop and recommend statewide safe routes to school, I now yield the floor to my colleague from House District 29.

Representative Hussy.

Thank you, Madam Speaker. I want to appreciate the comments made earlier in the preparatory in his preparatory remarks by the Finance Chair indicating that we do make this budget in challenging times. Our state does face significant headwinds and I believe that the best way forward is for us to develop a stronger, more resilient economy.

That's much of what this budget accomplishes. It includes $1 million annually for the Manufacturing Assistance Program which helps local businesses develop here in Hawaii. It includes $1 million annually for the Hawaii Small Business Innovation Research Program. And these grants will allow us to leverage future federal SBIR dollars.

It also includes $1 million annually for the Accelerator Grant Program which supports local entrepreneurs. We all want to support them. This budget also includes 1.45 million annually for healthcare workforce development, which is something that we're all aware of. The short, the shortages that our state faces.

$465,000 and five positions for the Office of Federal Awards Management to recruit additional federal dollars. 1.7 million annually for increased pay for Deputy Public Defenders, bringing them on par with other government attorneys. And my personal favorite, $200 million deposited into the Emergency Budget Relief Fund to provide the state with additional financial flexibility in these times of emergency.

Thank you. And now I to my colleague From House District 2.

Madam Speaker, in support.

Please proceed.

Thank you, Madam Speaker. As our finance chair so eloquently put, we are facing challenging times ahead and would like to echo his gratitude to leadership and staff for their enormous contributions to this budget. Madam Speaker, health care remains a priority of the house. Members.

House Bill 300, House Draft 1 charts a strong course to tackle the choppy journey ahead and provides resources to the overall well being of all of our families, friends and neighbors.

The highlights are $80 million in fiscal year 26 and 69.6 million in fiscal year 27 for the Hawaii Health Systems Corporation for all regions across the State of Hawaii, 12 million and 6 million in fiscal 26 and 27 respectively, for our Maui health systems, 1.8 million in fiscal 26 and 3.3 million, in addition to 21 positions for ongoing certification in certified community behavioral clinics and 5.5 million for psychiatric beds.

These investments are immediate cornerstones for all of our communities in the area of taking care of our family. This bill makes strategic strides with 31.4 million over the biennium for home and community based service waivers and 1.7 million annually for family planning and preventative health services.

It also provides a hand up with 6.2 million in fiscal 26 and 5.4 million in fiscal 27 in grants, grants for small and disadvantaged communities and a life saving investment of 1.8 million for ambulance services for North Kona. These resources help all of our families in the area of health care.

Madam Speaker, I now yield my time to the distinguished gentleman from House District 1.

Representative Kusch.

Thank you, Madam Speaker. Strong support. The message has been loud and clear. Strengthening local agriculture is key to sustainability within our state. And that state sustainability is predicated on control of invasive species. As such, the following budget elements support this directive of strengthening biosecurity. Ten point. Excuse me.

10.7 million annually for 32 positions of Plant, Pest, and Disease Control branch for biosecurity, 1.2 million annually for green waste and compost reimbursement for biosecurity and a little over 804,000 annually for 12 positions in the pesticide branch for biosecurity and 163,164 annually for two positions for the Plant, Pest, and Disease Control branch.

So thank you all I now yield my floor time to colleagues From House District 50.

Representative Lee.

Thank you, Madam Speaker. I rise in support. I'd also like to thank the honorable Finance Chair, Vice Chair, and the finance staff who are here today. This budget prioritizes investments in Hawaii's labor force and workforce to modernize operations and expand employment support.

4.17 million ceiling increase for the Workforce Investment Opportunity Grant funding job training programs and career counseling services to support adults, dislocated workers, youth and other target groups. In preparing for new career opportunities. 6.8 million in fiscal year 26 and 2.8 million in fiscal year 27 for pension administration system migration.

231,000 in fiscal year 26 and 427,000 in fiscal year 27. And six positions for the Department of Human Resources Development to boost the state's recruitment and outreach initiatives.

1.8 million in fiscal year 26 for classification and compensation study for Department of Human Resources Development to review and update executive branch civil service classes to enhance recruitment, retention and equitable compensation.

And lastly, 2.8 million in fiscal year 26 and 3.1 million in fiscal year 27 for software upgrades for Department of Labor Industrial Relations to improve efficiency, security and accessibility of case management systems for disability compensation programs. And now yield the floor to my colleague From House District 10 representing Wauku to Waikapu on 30.

Representative Miyake.

Thank you, Madam Speaker. In strong support. Madam Speaker, the house continues to reaffirm its commitment to affordable housing and to build more affordable rental and for sale. Housing for low and moderate income families in Hawaii as well as to house our most vulnerable populations.

$1.5 million annually for family assessment centers prioritizing houseless families with children by quickly moving them off the streets and into shelter or permanent housing. $1.75 million annually for homeless outreach and. civil legal services connecting houseless individuals with. Shelters and assisting in obtaining identification documents.

$3.75 million each year for housing first and rapid rehousing programs ensuring that individuals experiencing homelessness receive the support and resources needed to secure permanent housing. $250,000 annually for the state Rent Supplement Program providing critical financial relief for families struggling with housing stability. And lastly, $250,000 annually for the federal section 8 program expanding rental assistance opportunities.

For our most vulnerable population. I now yield the floor to my colleague From House District 30.

Representative Templo.

Thank you, Madam Speaker. In strong support. Our state budget prioritizes much needed investments in Hawaii's visitor industry, which accounts for one third of our economy and provides thousands of jobs for our local residents. This budget highlights four key allocations. 1.9 million will go to repairs and maintenance of the Hawaii Convention Center.

As the largest and most prominent convention venue in the state, the Hawaii Convention Center plays a vital role in attracting domestic and international business.

These funds will ensure necessary repairs and upkeep to maintain our world class facility to host special events like our recent Honolulu Festival, Pokemon Go, Kauai Con, World Economic Forum, East Asia Meeting and much more. $12 million is allocated to renovation at the historic King Kalakaua Building, home to the Hawaii Department of Commerce and Consumer Affairs.

This 127-year-old building houses key divisions responsible for business regulation, consumer protection, and marketplace oversight. This investment will enhance services for businesses and the public, ensuring continued efficiency in regulatory operations. 25,000 is budgeted to expand the Interstate Medical Licensure Compact. The IMLC streamlines the licensing process for physicians across participating states.

This compact will make it easier for doctors to practice in our state, ultimately improving health care access for our residents. And lastly, 1.5 million will go to upgrading the captive insurance branch IT system. A strong and compliant captive insurance market is essential to Hawaii's economy.

This upgrade will improve regulatory oversight, operational efficiency, and and industry growth, ensuring that Hawaii remains a leader in this sector. With these strategic investments, we continue to strengthen Hawaii's economic foundation, business climate and essential industries. Thank you. I now yield the floor to our colleague, our CIP Manager from House District 48.

Representative Kitagawa.

Thank you, Madam Speaker, and strong support. Thank you. I'd first like to start off by thanking you, Madam Speaker, and the members of this body for allowing me to take the lead on CIP this year. It's a responsibility I do not take lightly and I thank you for this opportunity to do this important work.

I'd also like to take the opportunity to also thank the Finance Chair for his guidance and as he mentioned, he previously served as the CIP Chair for many years, so I really appreciated his insight and assistance on crafting this CIP budget.

Thank you also to the Vice Chair of Finance for all of her hard work and support on this budget, as well as to the Finance Committee for the many hours that they have spent on working on this budget as well.

I'd also like to take the opportunity to also thank the staff who have worked on the CIP budget and have supported me in doing this work work.

First, thank you to my session staff, Mackenzie Kopp and Carissa McNair for their support and hard work in my office and thank you to my office manager, Wendy Okazaki, as well as Ryan Kagimoto, who is my CIP finance staff.

Both Wendy and Ryan have spent many hours researching and vetting these projects and working with me to put together this year's CIP budget. I couldn't have done this work without them, and I am truly grateful.

This biennial CIP budget includes about $1.9 billion in general obligation and general obligation revolving bonds and about $6 billion when you consider all means of financing. This CIP budget includes many important items to help our state address our many needs and and prioritizes areas such as health and safety, affordable housing and education.

I'd now like to highlight some of the items that are included in this CIP budget. This CIP budget includes $408 million for affordable housing projects statewide, including funding for critical infrastructure, the K Momi Development Project, and an infusion of funds to both the Rental Housing Revolving Fund and the Dwelling Unit Revolving Fund.

$16 million to improve state agriculture, irrigation systems and reservoir systems. $35 million to support the third Hawaii State Veterans Home on Maui. $50 million to support repairs and upgrades to the Hawaii Convention Center. $480 million to the Department of Education for various improvements and repairs to school facilities, including $150 million for deferred maintenance projects, $50 million for health and safety improvements, and $20 million to address compliance issues including ADA and Title IX.

$40 million for Hawaiian homelands. $116 million for health care services, including 25 million for the new Keaau Benioff Medical Center and 13 million for Kona Community Hospital's new emergency department. $60 million for land and natural resources statewide, including watershed protection, rockfall mitigation and health of drinking water aquifers.

$54 million for state libraries, 75 million for various public safety and correction facilities, and $333 million to support higher education and the University of Hawaii system. Madam Speaker, the CIP budget addresses many of the issues we have in our state and prioritizes many important projects for our community still statewide.

I urge my colleagues to join me in supporting this budget. Thank you very much.

Thank you. Any further discussion? Representative Iwamoto.

Thank you, Madam Chair. I rise in support with reservations. And I just wanted to share that my reservations are. I want to start by thanking the chair and all of the, the individuals who served on the committee for their Incredible work and your staff. Incredible. I know it's really hard to make these tough decisions.

I do want to give voice, though, to the reservations that the community offered in their testimony specifically regarding the 30 million for what has been deemed as a perpetuation of our mass incarceration policies. That is 30 million that could have gone to services.

Although I do appreciate that 4.1 million was allocated for reintegration services so that we don't need to incarcerate so many individuals. But nonetheless, the 30 million is quite a sizable amount and for many in the community, it represents what could become a $1 billion cost. But thank you for your work. I appreciate it. Thank you, Madam Speaker.

Any further discussion? Representative Garcia.

With reservations.

So ordered. Representative Souza.

Thank you, Madam. Secretarize and support. Thank you. I just wanted to acknowledge the work of the Finance Chair and also acknowledge that these are challenging times to be crafting a budget with everything going on at the federal level.

With just in this past week alone, I've been reading about the stock market's volatility hits to 401ks, the imposition of tariffs on steel and aluminum, the fears of a recession and cuts to the Department of Education and also just general cuts to our federal workforce.

So with all that being said, I think that this budget is as good of a budget as we'll get at this point in time with proper forecasting and just considering what is going on at the federal level. Thank you.

Any further discussion? Representative Matsumoto.

Reservations and permission to insert written comments in the journal.

So ordered.

There's no further discussion. Oh, Representative Pierick.

Thank you. With reservations.

Please proceed.

Alrighty. So according to the Tax Foundation, our state is ranked number two out of 50 with high income tax and we're ranked number eight with the overall tax burden. So we've got a lot of taxes compared to the other states in our country. And what is the return on that?

We have a budget of $20 billion and there's some line items that are great. Thanks to everybody who are helping those good line items. There's also a lot of wasteful spending to start, $5 million to litigate basically the federal administration.

So America has spoken over majority of the popular vote and a majority of the Electoral College went to Trump saying let's make him our president and now us as a state, we're saying no, let's spend $5 million of the hard earned tax income dollars of our residents and let's litigate the president because we're going to disagree with the rest of America.

That sounds wasteful to me. We've got over $800,000 to take away or to incentivize the decreasing of people's access to their second amendment right. Instead of saying, let's actually create a tax credit to give people guns, let's instead use people's tax money to buy back guns. That doesn't make sense from a constitutional standpoint.

Also, we've got a health care education loan repayment program. $50 million for that. How about instead of saying, all right, everybody in the residential area, you all have to pay taxes so we can favor doctors and nurses getting education, let's instead give them tax credits or something like that.

Or say, hey, go get a scholarship or go get a job so that you can pay off your loan. I have education, and none of it came from loan payment programs. It all came from scholarships. We also have a mass transit special fund, basically the rail.

Half a billion dollars going towards a project that probably none of us use in this chamber, yet we keep funding it. It's $12 billion in the future. Was only supposed to be $4 billion. $30 million that goes to the study of a new OCCC. Instead of actually, let's use this money to build one. Let's talk about it.

Let's create some drawings and say $30 million to create a drawing for OCCC. We also have over half a million dollarsfor a military and community relations office. Okay. They all have phone numbers and emails. We can just pick up our phone and say, hey, Mr. Military man, let's coordinate something.

Instead of allocating half a million dollars for an office to do the coordinating for us. There's a lot of wasteful spending in here, and so I'm voting reservations for that reason.

Representative Muraoka.

Reservations.

So ordered. Representative Reyes Oda.

Support. I stand in support. As the minority member of the Finance Committee, the decisions made in the allocation of state funds was a tedious but thoughtful process. Although I'm learning, I appreciated the guidance from Finance Chair Yamashita, who took the time to answer questions and to explain processes to me.

Thank you, Chair Yamashita, for your dedication, and I stand in support of this budget.

Any further discussion? Representative Peric, for the second time.

Thank you, with reservations. Thank you. There's one item I forgot to bring up. Also in this budget included is $715,000 for four positions for the deputy superintendents. In the DOE, we have about 170,000 students. In the DOE, we've got over 12,000 teachers. That's a ratio of about 13 students for every teacher.

And then in the DOE overall, we've got 23,000 staff, almost twice as many staff members Or I should say, for every teacher, there's like a staff member in the doe. And we're going to add four more positions for this in the superintendent's office. And it sounds kind of crazy.

Let's like decrease the administrative side of the DOE and focus more on the teachers. And we're just going to be adding more money towards the administrative side of the doe. So that's why I'm voting with reservations.

Any further discussion? If not. Oh, Representative of Shimizu.

Thank you, Madam Speaker. I rise in support with reservations and comment. Please. I understand there are difficult decisions to make, and we all probably have different opinions on how money can be spent. I just want to express my gratitude to the Finance Chair, Vice Chair, Committee Members, their staffs.

I'm really struck by the impact and the magnitude of what we do here. And I'm humbled to serve along my fellow colleagues. And I pray that the money will go a long way and make a difference in our communities and in our state and for people who really need it.

So I would just pray that we continue to make good decisions and work together. Thank you.

Representative Yamashita.

Thank you very much, Madam Speaker. Still in support. Yeah. May I request insert additional written comments on this measure?

So ordered.

Thank you.

Okay, if there's no further discussion. Representative Morikawa for the vote.

Madam Speaker, on the measures measure before us, all majority members vote I.

Representative Garcia.

On the measure before us, all minority members vote I.

Have all votes been cast? Said House Bill passes. Third reading item number eight. Announcements. Members, are there any announcements? Seeing none, Representative Morikawa.

Madam Speaker, I move that this House stand adjourned until 12 o' clock noon tomorrow.

Representative Garcia. Madam Speaker, I second the motion. All those in favor say aye. All those opposed say no. The motion is carried. The House stands adjourned until 12 noon tomorrow.

It.