Maui County officials assess Bill 9's impact on revenue and bond ratings

The Maui County Budget, Finance, and Economic Development Committee convened on July 1, 2025, to discuss critical financial matters, including the implications of Bill 9, revenue projections, and the county's bond rating.

The meeting began with a focus on Bill 9, which aims to facilitate the development of residential and workforce housing. Council members sought clarity on the bill's potential revenue impact and its timeline for implementation. Discussions highlighted that the county's flexibility in setting real property tax rates would be beneficial if the bill passes. Officials noted that as Lahaina rebuilds, the General Excise Tax (GET) revenue is expected to rise significantly due to new, larger homes being assessed at higher values.

The committee reviewed projections indicating a potential revenue impact of approximately $75 million, alongside $40 to $50 million allocated annually for affordable housing initiatives. Additionally, $20 million in tax relief has been provided to property owners affected by recent wildfires, with further exemptions for long-term rentals for survivors. Collectively, these measures represent about $85 million in revenue aimed at supporting housing for residents.

The conversation also addressed concerns regarding the county's bond rating. Officials reported that credit rating agencies expressed no significant concerns about Bill 9's impact on the county's financial standing. They acknowledged the county's robust unassigned fund balance and liquidity, which have shown positive trends over recent years. The agencies appreciated the county's proactive approach to managing its finances, including the ability to adjust tax policies as needed.

Further discussions touched on the county's employment situation, noting a decrease in the unemployment rate from 5.3% to approximately 3.3%. However, concerns were raised about the nearly 20% unemployment rate among wildfire survivors, highlighting the ongoing challenges faced by this group.

The meeting concluded with a review of the county's financial health, emphasizing the importance of maintaining a strong reserve fund and the positive outlook from rating agencies regarding the county's fiscal management. The committee plans to continue monitoring the implications of Bill 9 and other financial strategies in future meetings.