Senate Standing Committee on Judiciary

Okay. Calling the 10:00 a.m. meeting to order. This meeting, including audio and video remote participants, is being streamed live on YouTube. You will find links to viewing options for all Senate meetings on our live and on-demand video page of our website. In the event we have to end this hearing due to technical difficulties, we will reconvene on Thursday, April 9, 10:56 in this room.

This is for decision-making, oral testimony. No oral testimony will be taken. If you're interested in reviewing the written testimony, please go to our website. You will find the link on the status page of each measure. It is House Bill 1800. The recommendation is to pass with amendments. Any discussion?

Good bill.

On the macro issue.

On which one?

Macro issue that we've been getting emails-- the macro.

Okay, recess.

Okay, discussion. So mahalo to Senate President, Vice President Kidani, Majority Leader Kanuha, Vice Chair Moriwaki, the subject matter committee chairs for their leadership as we address this complex statewide issues.

Thank you to the Ways and Means Committee. Also, a big mahalo to Governor Green and the Administration for the continued partnership in the face of federal funding changes and local severe weather events. HB 1800 is a culmination of many hours of dedication and diligent efforts by this body to identify opportunities for strategic appropriations to create a home where our residents can global-- can be globally competitive.

Economic uncertainty caused policy changes at the federal level that impact safety net programs. SNAP and Medicaid eligibility changes put vulnerable households at risk of losing food assistance and health coverage, and shift administrative costs to the state, cost-of-living increases due to the war in the Middle East, and in March 2026, Kona low weather events caused significant damage across the state.

On March 23rd, Governor submitted a formal request for a Presidential Disaster Declaration, which would unlock critical support from HEMA-- FEMA. On March 24th, the Congressional Delegation submitted a letter in support stating the damage from the storms may exceed $1 billion. A Major Disaster Declaration for Hawaii has not been received.

These economic uncertainties emphasize the importance of the Senate's position to preserve future income tax cuts for working families. The budget is part of a larger package of tax system reform, long-term investments, and cost-saving measures to increase the resilience of the state while also delivering on meaningful tax relief to our working families.

The budget reflects a multi-pronged approach that captures underutilized funds to prioritize resources for essential public services, including funding for programs in critical areas as identified in the Senate Majority Package: housing and affordability, workforce development and economic diversification, healthcare and public safety, education and higher education, food security, agriculture and environment, infrastructure, transportation, and community support, and government reform and operations.

Cost-saving strategies in the budget to prioritize underutilized funds for essential public services include reduced lapse funds-- reducing lapse funds on the-- basing it on the average of the last five years, which produced a savings of more than 240 million in General Funds. We're also eliminating long-term vacancies in alignment with DHRD's Act 57 Report, producing cost savings totaling more than 17 million across all means of financing, including 8 million in General Funds.

We're eliminating vacancies that are not in active recruitment according to each department, producing cost savings totaling more than 26 million across all means of financing, including 11 million in General Funds. And we're encouraged-- we are encouraged by financial self-sustainability for authorities and corporations by centralizing administrative services and shifting them to non-General Funds, producing cost savings totaling more than 39 million.

The Senate Draft proposes an operating budget, all means of financing 19.772 billion in Fiscal Year 26 and 20.147 billion in Fiscal Year 27. General Funds total 10.425 billion in Fiscal Year 26 and 10.441 million--sorry--10.441 billion in Fiscal Year 27.

The highlights of our budget include for Department of Agriculture and Biosecurity, we're reducing $262,455 in unutilized non-General Funds, increasing federal fund ceilings by $100,000 for Brown Treesnake Program, adding a little over 18 million for agriculture, land, and industry protection for invasive species, adding 2.5 million for agricultural systems and preparedness projects. We're increasing Pesticide Use Revolving Fund ceiling by 600,000 to deal with the Pesticide Disposal Program.

For Accounting and General Systems, we're adding a little over $1 million for statewide utilities. We're adding one permanent position and 85,000 for central custodial services, adding 250,000 for building repairs and maintenance. We're increasing the State Motor Pool Revolving Fund ceiling by 1.3 million for electrical infrastructure and equipment and increasing the State Parking Revolving Fund ceiling by 500,000 for electrical infrastructure and equipment.

For the Department of the Attorney General, we're adding $1 million for litigation expenses, increasing the federal fund ceiling by $345,159 for federal awards, and we're increasing the Medicaid Investigations Recovery Special Fund by 200,000 for anticipated federal awards state match.

For DBEDT, we're increasing the Energy Security Fund ceiling by 6 million for Geothermal Carbon Sequestration and Underground Water Resource Characterization Program, adding 400,000 for regional tourism marketing and route development, consolidating 11 permanent positions and six temporary positions, and $1,359,612 from various attached agencies under the DBED Director's Office for administrative services; transferring in one permanent position and $116,265 to establish a taxation compliance coordinator.

We're increasing the Special Land Development Special Fund by $2 million for a national disaster economic recovery strategy update and implementation. We're adding 11,636,000 for water systems safety and preparedness, and we're changing the means of financing for 29.5 permanent positions, three temporary positions, and $8,701,506 from General to non-General Funds for attached corporations and authorities.

We're adding 300,000 for educational exchange programs in coordination with the Maui and Oahu Metropolitan Planning Organization. For B&F, we're adding $1,820,168 and increasing the Special Fund ceiling by $320,844 to implement recommendations from the Commission on Salaries.

We're adding $3,527,463 for fringe benefits, increasing ERS ceiling by $123,343 in one permanent position, increasing the Hawaii Employer Union Health Benefit Trust Fund ceiling by $139,598 for one position, and we're adding $748,552 for the health premium payouts, excluding DOE and UH.

For DCCA, increasing Special Fund ceilings by $1,175,372 for fringe benefits, increasing the PUC Special Fund ceiling by $595,915 for Division of Consumer Advocacy operations, increasing the Compliance Resolution Special Fund ceiling by 20,000 for outreach events and public service announcements.

For Department of Defense, we're increasing the Hawaii and Air National Federal Fund ceiling by $118,376 for two building and grounds supervisors. We're increasing the same ceiling by 78,595 for one Natural Resources management program specialist and also increasing the ceiling by $83,578 for one engineer.

Now we're also increasing the ceiling by $27,571 for one vector control worker for the Hawaii Army and Air National Guard and by $31,451 for one administration assistant IV for the Hawaii Air National Guard and adding $50 million for an infusion into the Major Disaster Fund. We're also transferring in two positions and $3,258,451 for the Hawaii Emergency Management Agency. For DOE, we are adding 26 permanent positions and $1,065,640 for regional kitchen operations.

We're adding one permanent janitor too, and $50,640 for the high core, temporary, and future permanent facility. We're increasing the Teacher Housing Revolving Fund ceiling by 500,000 for teacher housing cottage repairs, increasing the Facilities Development Assessment Revolving Fund ceiling by $7 million for architectural and engineering services to support CIP and deferred maintenance, adding 675,000 for the McKinley Community School for Adults statewide digital curriculum access and K12 curriculum, adding two permanent positions for the Hawaii Early Childhood State Plan, and adding one permanent evaluation specialist, two for Early Learning system coordination.

For the Office of the Governor, we are adding $280,935 for operating expenses. For Department of Hawaiian Homelands, we're increasing Federal Fund Revolving Loan ceiling by 23 million for federally funded loan disbursements. For DHS, we're adding 1.5 million for child protective contract services.

We're adding $297,500 for the Office of Wellness and Resilience expenses. We're adding $22,080 for the Office of Wellness and Resilience collective bargaining, adding $30 million in General Funds and increased federal fund ceiling by 30 million for system requirements and staff augmentation to implement congressional HR 1.

We're adding 16.5 million to cover the loss of Affordable Care Act tax credits. We're changing the means of financing from Federal to General Funds for 101.53 permanent positions and $13,423,792 for SNAP administrative expenses. We're adding $45 million in General Funds and increasing the Federal Fund ceiling by $65,375,276 dollars for capitation expenditures.

For Department of Health, we're increasing the Universal Immunization Purchase Special Fund ceiling by 30 million to support vaccine purchasing program start up, adding 1,416,250 for core clinical services at Kahuku Hospital and adding 6 million in overtime for the Hawaii State Hospital. We're adding $8,044,600 for the psychiatric bed contracts for the Hawaii State Hospital and $206,158 for an integrated data system.

We're increasing the Medical Cannabis Registry and Regulation Special Fund ceiling by 500,000 for a cannabis registry and regulation reference library. We're adding 4.5 million for emergency medical services, and we're adding 2,780,000 for Department of Health's leads rent. For Department of Law Enforcement, we're transferring in 318,000 from the Department of Labor and Industrial Relations for the State Fire Council and adding $818,600 for wildfire preparedness.

For Department of Labor, we're transferring out the 318,000 to the Office of the State Fire Marshal in DLE, and we're adding 898,000 for Farm-to-Food Bank programs. For DLNR, we're adding two permanent positions, 133,566.

For the Hawaii Climate Change Mitigation and Adaptation Commission, we're adding one permanent position and 150,000 for the Na Ala Hele Trails Program. We're increasing the Red Hill Remediation Special Fund ceiling by 5.5 million for Red Hill remediation projects. We're increasing federal fund ceilings by $850,923 for native resources and seabirds, increasing federal fund ceiling by $5,562,554 for native resources and fire protection programs statewide, increasing federal fund ceilings by $1,517,510 and adding 15 positions for the Division of Forestry and Wildlife.

We're increasing Ocean-Based Recreation Special Fund by $5 million for maintenance and repair projects at small boat harbors and we're adding $42 million in Fiscal Year 26 and $87 million in Fiscal Year 27 to be deposited into the Special Land and Development Special Fund for green-free projects-- Green Fee projects, which will be distributed to appropriate departments for specific projects.

For Department of Corrections and Rehab, we're transferring $2,509,942 from non-state facilities and $123,411 for general administration for 35 permanent positions to provide mental health services. For Department of Taxation, we're adding 200,000 for the Tax Review Commission and two permanent and one temporary position and $248,292 for revenue collection.

For Department of Transportation, we're increasing the State Operating Allotment Special Fund ceiling several times, $800,000 for traffic signals, 350,000 for guardrail repair, and 675,000 for roadside safety maintenance.

We're increasing the Airport Revenue Special Fund ceiling by 23 million for fire suppression system at the CONRAC facility and increasing Harbor Special Fund ceiling by 4.5 million for electronic data interchange system so that they can take it all off of paper.

We're increasing the Airport Revenue Fund ceiling by 2.5 million for seamless border entry, increasing State Operating Allotment Special Fund ceiling by 750,000 for historic Oahu Railroad and land operations. We're increasing various special fund ceilings by 1,251,000 for internship programs across DOT, and for University of Hawaii, we're increasing the UH Tuition and Fee Special Fund ceiling by $4,169,328 to support culinary programs and by 319,000 and adding three positions for the Business Administration Program at UH West Oahu.

This budget reflects a shared responsibility to strengthen the fiscal future of our state and well-being of our residents by stabilizing critical public services, protecting natural resources and infrastructure, and facilitates regional economic development and diversification to build Hawaii's economic resilience. Mahalo again to the committee, to the leadership, and to the members, the governor's administration, and the departments.

Thank you very much for helping us develop this budget. The recommendation is to pass with amendments. Any further discussion? Okay, if not, Chair votes aye.

Chair votes-- pass with amendments. Chair votes aye. Vice Chair votes aye. [Roll call]. Your recommendation is adopted.

Thank you. So we're gonna adjourn. There's probably a lot of you that wanna leave, so if you can do so quietly. Okay. Calling the 10:01 agenda to order.

First item is House Bill 1769. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

Members present, anyone voting no? With reservations?

Reservations for Assemblymember Elefante. Anyone else? Recommendation adopted.

Reservations.