Senate Standing Committee on Ways and Means

Okay calling to agenda the 10 am Ways and Means Committee Meeting. This meeting, including the audio and video of remote participants, is being streamed live on YouTube. You will find links to viewing options for all Senate meetings on the Live in On Demand video page of our website.

In the event we have to end this hearing due to technical difficulties, the committee will reconvene Tuesday, April 1, 10 am in this room. This is decision making only. Our testimony is accessible online. Okay, first item is HB 300.

Okay, Chair recommends to pass with amendments and before we begin further discussion, I just want to thank the Vice Chair, Senate leadership and all the committee chairs for their leadership in addressing statewide issues, especially those very complex. HB 300 is a culmination of many hours of dedication and effort by this body to identify opportunities for strategic appropriations across the state.

We all have been discussing the economic uncertainty resulting from the federal administration, including tariffs and potential federal funding cuts. What made it worse is council revenues general fund forecast in January and March; after the Governor submitted his draft in December, revenue projections decreased in January.

On the very same day the House took third reading on the budget bill, council revenues projected major declines. From 6.4% in fiscal year 25, we've gone down to 5% fiscal year 26 from negative 1.5% down to negative 2.25% with fiscal year 27 remaining the same.

However, it is important to note that growth projections are compounding since percentages are based off the previous year's collections.

So, with that said, fiscal year 25 has a reduction of $135 million, fiscal year 26 has a reduction of $207.3 million and fiscal year 27 and beyond each year having a reduction of at least $200 million. Over the next fiscal biennium, the state will not realize 554.6 million in general fund revenues.

Our approach has been to prioritize adjustments that align with the Senate majority package: education and workforce development, housing, homelessness and stabilizing Hawaii's property insurance, general governance and constitutional rights, environmental sustainability and infrastructure, and agricultural innovation and other revenue streams to make sure we can support Hawaii's economy in uncertain times by appropriating general funded capital improvement projects, which boosts our construction industry to stimulate the economy and provides flexibility for potential funding cuts in the future.

We actually implemented BNS instructions as detailed in Memo 24-10 to reduce positions vacant since July 1, 2020, which totaled about $50 million across all means of financing. And we're funding most new programs in the fiscal year, first fiscal year only to maximize the state's ability to maintain critical services during these times of economic uncertainty.

The Senate draft proposes an operating budget of general funds at $10 billion, - almost $10.5 billion in fiscal year 26 and about $10.4 billion in fiscal year 27. All means of financing equal 19.9 billion in fiscal year 26 and 19.7 billion in fiscal year 27.

Some of the highlights of our draft include for the Department of Agriculture, adding 44 positions and $13,324,731 in both fiscal years for biosecurity, adding 7.5 positions and $422,604 in both fiscal years to operate and maintain irrigation systems statewide, adding $2 million in fiscal year 26 to supplement the revolving fund to keep irrigation water rates affordable for local farmers, and adding $100,000 and one grant writer position to capitalize on extramural funding.

For Department of Accounting and General Services, we're adding one position and $2,550,000 in fiscal year 26 and $4,800,000 in fiscal year 27 to expand access to boards and commissions meetings.

And we're also adding 200,000 in fiscal year 26 and 220,000 in fiscal year 27 for IT accessibility implement implementation. For the Office of Enterprise Services and Technology Services, in consultation with the Disability and Communication Access Board, we're adding $1.6 million in fiscal years 26 and 27 for cybersecurity risk mitigation efforts, adding $310 million in fiscal year 26 and $325,000 in fiscal year 27 for cloud backup and disaster recovery solutions.

We're adding two positions and $1,088,500 in fiscal year 26 and about $1.2 million in fiscal year 27 to establish the Cemetery Management Office. We're adding 126,000 in fiscal year 26 and 27 for the Small Business Coordinator to help ensure equal opportunity for businesses owned by veterans, Native Hawaiians, and women and we're adding two positions and about 2.1 million in fiscal year 26 and 380,000 in fiscal year 27 for the Campaign Spending Commission to upgrade electronic voting systems. We're increasing the special fund ceiling by 5 million in fiscal years 25 and 27 to expand 911 services to new and emerging technologies and increasing the special fund ceiling by 200 million in fiscal years 26 and 27 for the distribution of insurance proceeds from the Maui Wildfires. For the Department of Attorney General, we're adding two positions and one and about 200,000 in fiscal year 26 and 27 for the Hawaii Correctional System Oversight Commission. We're adding two positions and about 150,000 in fiscal year 26 and a little over 300,000 in fiscal year 27 for the Medical Fraud Unit, and adding one position and $57,500 in fiscal year 26 and $115,000 in fiscal year 27 for antitrust laws and the promotion of a fair and competitive economy. Adding one position at $57,500 in fiscal year 26 and $115,000 in fiscal year 27 to help uphold child protection laws and support Office of Youth services. We're adding $3 million in fiscal years 26 and 27 to ensure pay equity for Deputy Attorney General positions.

For DBEDT, we're adding about $1.5 million in fiscal years 25 and 27 to address healthcare workforce shortages.

In collaboration with Department of Education, we're adding 250,000 in fiscal year 26-27 to provide career foundations in collaboration with DOE's Community School for Adults. Adding 865,000 in fiscal year 26 and 27 to help local entrepreneurs expand to global markets. Adding $4 million in fiscal year 26 and 27 for the First Ladies Feeding Hawaii Keiki Initiative in collaboration with DOE and CTAHR. Adding $4 million in fiscal years 26 and 27 to cement Hawaii's position as the gateway between east and adding one position and 35,000 in fiscal year 26 and 71,000 in fiscal year 27 for the Hawaii Film Office. Adding $500,000 in fiscal year 26 for climate change assessments in community development districts and adding about $2 million to support local farmers in collaboration with CTAHR. For Department of Budget and Finance, we're adding one position and $983,500 in fiscal year 26 and $592,600 in fiscal year 27 to safeguard the state's $24 billion assets for the ERS.

We're increasing trust fund ceilings by $143,719 in fiscal year 26 and $287,438 in fiscal year 27 for one investment officer to help maintain post-employment benefits including healthcare, and we're adding $1.6 million in fiscal years 26 and 27 for pay equity for positions within the Office of the Public Defender. For DCCA, we're increasing the special fund by $12 million to renovate their historic King Kalakaua building and adding $58,000 in fiscal year 26 and $116,000 in fiscal year 27 for one auditor for the PUC to address ratepayer affordability and renewable portfolio standards.

For Department of Defense, we're adding 230,000 in fiscal year 26 for critical telecommunication infrastructure. Adding $2 million in fiscal year 26 and 27 to help ensure pay equity for positions at the Youth Challenge Academy. Adding one position and 200,000 in fiscal years 26 and 27 to help incorporate language access laws into disaster management plans.

For DOE, we're adding $4 million in fiscal year 26 and 27 for the Hoʻākea program in partnership with Polynesian Foraging Society. Adding 726,000 in fiscal years 26 and 27 to make girls flag football a sport. Adding 63,000 in fiscal years 26 and27 for neighbor island student participation in JRTC. Add two positions and 220,000 for educational programming for students in residential facilities for neglected delinquent youth. Adding $10 million in fiscal years 26 and 27 for skilled nursing services for individuals with disabilities. Adding $1.7 million in fiscal years 26 and 27 to increase mental health and well-being support systems. Adding four positions and almost $700,000 in fiscal year 26 and 27 to provide career foundations across core and emerging industries in collaboration with McKinley Community School for Adults. Adding $4,000,000 and... $4,125,000 in both fiscal years for Farm to School mandate which aims at locally sourced 30% of DOE school meals by 2030. Adding $500,000 in fiscal year 26 and $250,000 in 27 for the automated handling system that utilizes radio frequency identification for all public libraries. Adding 465,000 in both fiscal years for differentials for charter schoolteachers including the hard to fill and Hawaiian emerging teachers. Adding 58 positions and about $5 million in fiscal year 26 and little more than $8 million in fiscal year 27 for the Lieutenant Governor's Ready Keiki Initiative, which aims to expand access to preschool statewide.

For DHHL, we're increasing the federal fund ceiling by 393,000 in fiscal years 26 and 442,000 in fiscal years 27 for three positions for the Tribal Broadband Connectivity Program. For DHS, we're adding six positions and 876,000 in both years for the Office of Wellness and Resilience. Increasing special fund ceiling by 225 million in both fiscal years for the Hospital Sustainability program. Increasing special fund ceiling by 35 million in both fiscal years for the Nursing Facility Sustainable program. Adding 750,000 in both fiscal years for the Child Wellness Incentive Pilot program. Adding $1.5 million in fiscal year 26 to establish the Smart Food program. Add two positions for $612,000 in fiscal year 26 and 1.6 million in fiscal year 27 to expand critical state services to blind and visually impaired residents on the Neighbor Islands.

For DHRD, we're adding 1.75 million in fiscal year 26 to help ensure pay equity for civil service jobs across the state.

For DOH, we're adding 125,000 in fiscal year 26 for medical transportation across rural Oahu. Adding 8.6 million in fiscal year 26 and 18.4 million in 27 for Medicaid home and community-based services waiver for individuals with intellectual and developmental disabilities. Adding 5.5 million in fiscal year 26 to expand the number of psychiatric beds at the Hawaii State Hospital. Adding 1.6 million in both fiscal years for a second medic station and ambulance on Molokai. Adding three positions and 192,000 in both fiscal years for the Senior Medical Patrol program. Adding 1.7 in both fiscal years for reproductive health and family planning services and adding 15 million in both fiscal years for the Healthcare Education Loan Repayment program.

For DLE, we're adding eight positions and $5 million in fiscal year 26 and $2.2 million in fiscal year 27 to create the Explosives Enforcement section to help stop the importation of illegal fireworks. We're adding 825,000 in fiscal year 26 to help prevent gun violence. Adding 250,000 in both fiscal years for de-escalation training for law enforcement officers and adding $250,000 in fiscal year 26 and 264,000 in fiscal year 27 for the Silver Alert program. For Department of Labor, adding two positions and 440,000 in both fiscal years to established immigrant services and access unit. Adding $1.5 million in fiscal year 26 to improve paid medical and family leave. Adding two positions in 76,000 in fiscal year 26 and 130,000 in fiscal year 27 to enforce temporary disability insurance and prepaid health care laws.

For DLNR, adding one position and 110,000 in both fiscal years and increasing special fund ceiling by 5 million, in both fiscal years, to revitalize Plantation Area Reserves - Reservoir statewide. Adding 1.5 million in both fiscal years for overtime for DOPE care.

Adding 21 positions and $5 million in fiscal year 26 and $2 million in fiscal year 27 to protect natural resources of our state. For Department of Corrections, adding 112,000 in fiscal years in both fiscal years to provide trauma informed care training. Adding $4.1 million in both fiscal years to help offenders reintegrate into society by and including by providing replacement vital documents, mental health treatment services, substance abuse treatment services and transitional housing.

For DOTAX, adding $338,000 in fiscal years 26 and $593,027 for the tax System Modernization project. For DOT, adding $15 million in fiscal year 26 for fire mitigation on highways statewide and $5 million in fiscal year 26 to support state agencies to address homeless encampments on stained lands.

For UH, adding 11 positions and 1.2 million in fiscal year 26 and 1.4 in fiscal year 27 to address nursing shortages statewide. Adding 200,000 in both fiscal years to minimize the spread of rat lungworm disease.

Adding two positions and 68,000 in fiscal year 26 and 133,000 in fiscal year 27 for the Academy of Creative Media. Adding 1 million in both fiscal years to establish the Aloha Intelligence Institute in UH Community College Systems to establish pathways for workforce development.

And adding two positions and 210,000 in both fiscal years for Windward Community College's Mental Health Technician Certification...Certificate of Competence Program.

This budget creates a proactive, efficient and cost-effective state government, stabilizes essential services and programs to address the needs of our most vulnerable residents, and helps to ensure financial flexibility for the future in the face of economic uncertainty.

Again, I want to thank the Vice Chair, the members of this committee, the subject matter chairs and Senate leadership, departments and state agencies, and members of the public and non-governmental government organizations who've advocated for many of these critical programs in services. And most of all, I'd also like to thank our staff.

We could not have developed this budget without each and every one of you. Again, the recommendation is to pass with amendments. Any further discussion? If not, Chair votes aye.

This will pass with amendments, HB300, [Roll Call]. Your recommendation is adopted.

Thank you. Next item is House Bill 794. Recommendation is to pass with amendments, effecting the date to 2050. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no or with reservation, HB 794? Measure adopted.

Thank you. Next item, House Bill 795. Recommendation is to pass with amendments defecting the date to 2050. Any discussion? If not, Chair votes aye.

HB 795 pass with amendments. All members present. Anyone voting no with reservation? Measures adopted.

Thank you.

Calling to order the 1001 agenda, beginning with House Bill 400. Recommendation is to pass with amendments. General fund totals amount to $198.7 million in fiscal year 26 and $198.8 million in fiscal year 27. All means of financing is 211.6 million in fiscal year 20 and 211.7 million in 27.

The highlights of the Judiciary bill, we are reducing 878,326 from vacant positions. Transferring 5.4 million to BLE for security services for judiciary facilities. Trade off seven permanent temporary positions for eight permanent positions to make the Women's Court Pilot program permanent. Adding 188,000 in fiscal years 26 and 183,000 in 27 to expand the Truancy Court program.

Adding 232,000 in fiscal year 26 and 237 in fiscal year 27 to make the Dry Fall Impaired Court program permanent. Adding four permanent positions and 368,000 in fiscal year 26 and 360 in 27 for the Kona courthouse. Adding three permanent positions and $136,000 in fiscal year 26 $125,000 in fiscal year 27 for the Office of the Public Guardian.

Adding one permanent, one temporary position and $583,000 in fiscal year 26 and $648,000 in fiscal year 27 for the Criminal Justice Research Institute.

Adding 1.1 million in fiscal year 26 and 27 for Microsoft G5 licenses. Adding 1 million in fiscal years 26 and 27 for civil legal services and adding 750,000 in both fiscal years for immigration related court proceedings. Recommendation is to pass with amendments. Any further discussion? If not, Chair votes aye.

House Bill 400, passed with amendments. All members present. Anyone voting no with reservation? Recommendation adopted.

Thank you. Next item, House Bill 410. Recommendation is to pass with amendments. General funds amount to $3 million in both fiscal years. All means of financing is $6 million in both fiscal years and changing the defective date to 2050. Any discussion? If not, Chair votes aye.

HB 410 pass with amendments. All members present. Anyone voting with no reservation? Measurement is adopted.

Thank you. Calling to order the 1002 agenda. First item is House Bill 3. Recommendation is to pass unamended; any discussion? If not, Chair votes aye.

HB 3 to pass unamended. All members present. Anyone voting no with reservation? Recommendation is adopted.

Thank you. Next item, House Bill 134. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

HB 134 passed unamended. All members present. Anyone voting no with reservation? Recommendation is adopted.

Thank you. Next item, House Bill 177. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

House Bills 177, recommendations passed unamended. All members present. Anyone voting no or with reservation? Measure adopted.

Thank you. Next Item, House Bill 214. Recommendation is to pass with amendments. Page 1, line 12: amend to read as, "School resource officers as well as excluded management positions in the Department of Agriculture and other state departments." Page 3, lines 8 through 10: amend to read as, "In a position identified by the appropriate jurisdiction as a labor shortage or difficult to fill position or needed for secession planning provided that."

And on page six, line nine, insert language under Section 2 to include, "Management positions excluded from collective bargaining under Chapter 89 and identified by the applicable department as a labor shortage a difficult to fill position or needed for secession planning as additional categories of retirements who may be employed without reenrollment in the ERS and perfecting the date upon approval."

Any discussion?

Just one clarification: I know they're trying to fill these positions but when we first started talking about this was trying to get, you know, the guys that qualify that's there now because we're going to be bringing people from resource officers from other communities.

We wanted them to get the training and getting one chance to get one increase in a position and coming under law enforcement by doing this is we're going to find other people that retired or no longer in the system.

There's no way of a regular security officer now, attending whatever you want to call them, is going to get an opportunity to get one leg up in coming back to the school as a law enforcement. That was actual talks in the beginning for the school resource officer in the beginning but I'm not understanding it.

We're going to be getting guys from different departments. How is that going to be preview to the community because, again, you're going to have somebody who's not knowing the community is not going to be an easy fix to have them fitting in there.

So, it was suggested to have somebody from the school that is qualified pass the test physically be able to go to the training and come back as a law enforcement officer, as the research officer for the, for the school.

Okay. We can put those thoughts in the committee report and see if the department can try to incorporate their concerns.

Thank you. Thank you, chair.

Any further discussion? If not, Chair votes aye.

HB 214 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next item, House Bill 237. Recommendation is to pass unamended. Any discussion? Not sure.

HB 237, pass unamended. All members present. Anyone voting no with reservation? Recommendation adopted.

Next Item, House Bill 441. Recommendation is to pass with amendments to deposit the funds into the Hawaii Cancer Research special fund, provided that 4 cents per cigarette shall be used exclusively for debt service of capital expenditures and building maintenance until the debt service payments are completed. Any discussion?

Yeah, sure. Just get one. I mean, I don't know the procedure, so I just wanted to get clarification. We understand Senator Kidani had asked the guys who's not smoking cigarette now, where did they go, kind of thing. So, I did the research, and I looked into it.

A lot of them that's thinking that vaping is a new alternative. So, I was wondering. I don't think there's a possibility, but there's a way of putting vape e-cigarettes in the percent of raising e-cigarette tax to help what we trying to accomplish with cancer center.

Yeah, the title is probably too narrow.

Okay. Thank you, chair.

But we can put some of that those thoughts in the committee report. Any further discussion? If not, Chair votes aye.

HB 441, passed with amendments. All members present. Anyone voting no or reservation? Measure adopted.

Thank you. Next Item, House Bill 448. Recommendation is to pass with amendments, effecting the date to 2050. Any discussion? If not, Chair votes aye.

HB 448 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next item, House Bill 648. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

HB 648 pass unamended. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next item, House Bill 667. Recommendation is to pass with amendments, effecting the date 2050. Any discussion? If not, Chair votes aye.

HB 667 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next item, House Bill 713. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

HB 713 pass unamended. Anyone voting no with reservation? Measure adopted.

Thank you. Next item, House Bill 727. Recommendation is to pass with amendments, blanking the appropriations. Any discussion? If not, Chair votes aye.

HB 727. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next Item, House Bill 735. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

HB 735 to pass unamended. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next Item, House Bill 740. Recommendation is to pass with amendments, insert a blank appropriation in the general funds for fiscal year 26 to be deposited into the dwelling unit revolving fund and expended by HHFDC. Any discussion? If not, Chair votes aye.

HB 740 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next item, House Bill 806. Recommendation is to pass with amendments, blanking the appropriations in both fiscal years for the Department of Law Enforcement to establish the following: one, an explosives and firearms laboratory on Oahu.

Two, a new explosive enforcement unit section within the Criminal Investigation division to include seven exempt investigator positions and one account clerk position. And three, a fireworks program to provide educational campaigns for public safety and awareness of fireworks through advertising and the filming of promotional videos and defecting the date to 2050. Any discussion? If not, Chair votes aye.

HB 806 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next Item, House Bill 1020. Recommendation is to pass with amendments. We'll be adding language taken from testimony, "And geothermal exploration" to all instances where carbon sequestrational potential and underground resources are mentioned in the bill. Any discussion? If not, Chair votes aye.

HB 1020 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next Item, House Bill 1345, recommendation is to pass with amendments. Page 2, line 12: insert a five-year commitment to teaching in a department school if receiving tuition subsidy. Any discussion? If not, Chair votes aye.

HB 1345, pass with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next Item, House Bill 1365. Recommendation is to pass with amendments, removing the fiscal year 27 appropriations as this is a non-recurring cost. Any discussion? If not, Chair votes aye.

HB 1365 passed with amendments. All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next Item, House Bill 1391. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

HB 1391 passed unamended. All members present. Anyone voting no with reservation? Reservation for Senator Kim. Measure adopted.

Thank you. And next Item, House Bill 1462. Recommendation is to pass unamended. Any discussion. If not, Chair votes aye.

HB 1462, pass unamended. All members present. Anyone voting no with the reservation? Measure adopted.

Thank you.