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Council reviews mayoral cabinet nominations; managing director and budget director address federal funding and tax concerns

2165277 · January 28, 2025
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Summary

The council heard mayoral cabinet nominees and either referred or approved them for committee consideration. Managing director designee Mike Formby and Budget Director designate Andy Kawano answered questions about communicating with council, potential federal funding cuts and real property tax relief for seniors.

The Honolulu City Council heard a slate of mayoral cabinet nominations and either referred nominees to committee or completed routine confirmations where the resolution was adopted on the floor.

Mike Formby, the mayor's managing director designate, opened his remarks asking for council support and stressing collaboration. "I come before you today hoping and trusting that my body of work over the last 4 years demonstrates my qualifications to be a managing director in the mayor's second term," Formby said.

A number of nominees were referred to committee for full vetting; others were adopted on the floor. Auli'i Doudwa (nominee to the Salary Commission) was approved on the floor after an amendment to correct spelling, Resolution 25-33 FT1 was adopted. Several cabinet nominations were referred to their respective standing committees for confirmation hearings, including:

- Mike Formby, managing director designate (Resolution 25-5) referred to the Committee on International and Legal Affairs. - Andy Kawano, director designate of Budget and Fiscal Services (Resolution 25-6) referred to the Committee on Budget. - Anton Krakke (Department of Community Services, Resolution 25-7) referred to Housing, Sustainability, Economy and Health. - Dana Viola (Corporation Counsel, Resolution 25-8) referred to International Legal Affairs. - Kim Hashiro (Customer Services, Resolution 25-9) referred to Public Safety and Customer Services, and others were likewise placed in committee for hearings.

During questioning, council members pressed nominees on near-term budget risks and constituent costs. Formby described the federal funding situation as urgent: when asked on a scale of 1 to 10 how concerned he was about federal funding changes he said, "Probably 10, very concerned." He told council that Office of Management and Budget guidance had temporarily stood down an immediate freeze but that more targeted actions could follow and that the administration would consolidate constituent reports to help state and federal advocacy.

Budget Director designate Andy Kawano replied to a resident's question about rising property assessments and tax burden. Kawano noted that the city already processes multiple exemptions and credits and said increases in income thresholds had expanded the low-income real property tax credit caseload and cost. "Prior to the increase of the income limit for the tax credit, we would process about 3,500 applications and provide just over $5,000,000 of benefit," Kawano said. "After increasing the income limit from $60,000 to $80,000, the amount of applications we review and approve have gone over 5,000 and the benefits are approaching $9,500,000."

Several community members testified in support of individual nominees during the hearing; Donald Sakamoto, a longtime community advocate who testified repeatedly across multiple nominations, expressed support for several appointees, including the managing director and budget director candidates.

Why it matters: these leadership positions determine departmental strategy on housing, public safety, budgeting and infrastructure. Nominees will face more extensive committee review where council members can demand detail on revenue proposals, procurement efficiency and contingency plans for potential federal funding reductions.

What happens next: committee hearings are scheduled for each cabinet nomination to allow for deeper questioning, documentation review and possible amendments before the council votes on final confirmation.