Kahoʻolawe Island Reserve Commission approves FY26 $3.5 million budget, funds carryover and trust‑fund projects

The Kahoʻolawe Island Reserve Commission approved a fiscal year 2026 budget of roughly $3.5 million on Aug. 21, funding core staff and reimbursable restoration projects and authorizing the use of trust funds for grant‑backed work.

Executive Director Mike Naho'opee told commissioners the recommended package “is to approve a $2,771,956 general fund and special fund appropriation budget … and to approve the expenditure of approximately $779,890 from the [Rehabilitation] Trust Fund to fund reimbursable grant projects and operations.” The combined total for FY26 is roughly $3.5 million, he said.

The budget combines an allotment from the governor’s budget, general‑fund carryover from FY25, and reimbursable trust funds. Naho'opee said carryover funds and one‑time releases allowed the agency to purchase equipment and prepay multi‑year contracts, giving the commission a funding buffer going into FY27.

Key items and funding sources - General fund allotment from the governor’s budget: about $1.8 million before an anticipated 10% restriction (Naho'opee estimated a usable figure near $1.6 million). - General‑fund carryover from FY25: roughly $1 million used to extend base camp management contracts, cover leases, utilities and parts of boat operations and vehicle purchases. - Reimbursable trust funds: approximately $600,000 expected to be expended and then reimbursed for grant projects, including NOAA and Maui County grants. - Rehabilitation Trust Fund spending: about $779,890 planned as fronted, reimbursable project spending.

Naho'opee described specific purchases the commission budgeted using carryover and special funds: a replacement reverse‑osmosis plant for base camp, two all‑terrain vehicles (a six‑wheeler and a six‑passenger), a large chipper to restore coastal areas (to be transported by helicopter), and supplies and native plants for coastal restoration. He also said the Office of Conservation and Coastal Lands allocated about $150,000 for coastal restoration equipment and transport.

Commissioners asked for clarifications about trust funds and donations. Naho'opee said donations received via the commission website are deposited into trust funds and that, for FY26, trust fund expenditures are expected to be reimbursed — “a net 0 to us,” he said, and noted a typographical error in one table that incorrectly listed non‑reimbursable trust funds (he confirmed none were budgeted).

Formal action Commissioner Chang moved to accept the FY26 budget as presented; the motion was seconded by Commissioner Peng. A roll‑call of commissioners recorded aye votes from the chair, Vice Chair Saito, Commissioner Chang, Commissioner Chock, Commissioner Mata Alpha, and Commissioner Payne. The motion carried unanimously.

Why it matters Commission staff said the mix of carryover and new allotments gives the program a two‑year cushion to maintain operations and continue restoration work while federal grant sources remain uncertain. Several commissioners pressed staff to continue conservative management of forward‑facing outreach and restoration work in light of shifting federal funding.

The commission also noted the budget leaves room for anticipated reimbursements tied to NOAA and county grants; staff said they will pursue reimbursements and, where necessary, pause work if reimbursements do not arrive.

What’s next Staff told the commission additional grant awards received since the meeting will be added via budget amendments in the fall. The commission voted to sign off on the FY26 budget at the meeting; staff will proceed with contract execution and planned purchases described in the presentation.