County forwards operating and capital budgets after department briefings on roads, housing buyouts and planning

Hawaii County councilors voted Friday to forward the proposed fiscal 2026 operating and capital budgets to the full council after four days of departmental budget hearings that included updates from Public Works, Planning, Research & Development and the Office of Sustainability, Climate, Equity and Resilience.

Public Works business manager Kelsey Kalua Lewis told the council that maintenance crews have paved 22.22 miles so far this fiscal year and the department expects to reach roughly 32 miles by year end, and that the highway fund operating budget is about $60.7 million. Lewis said the department is budgeting for vehicle and equipment replacements, software for construction and asset management, and a $2.5 million capital transfer mechanism to support federal matching and critical projects. Acting director Neil Azevedo and division chiefs highlighted ongoing CIP projects including hurricane- and lava-repair work, safe routes to school projects, and the department’s 18% vacancy rate — roughly 65 funded vacancies among 478 positions — which leaders said is hampering recruitment for licensed staff such as engineers and inspectors.

Planning Director Jeff Darrow briefed the council on completion steps for the General Plan 2045 and related code updates. Darrow and Long Range Program Manager Bethany Morrison said the department is actively working with a consultant to prepare comprehensive subdivision- and zoning-code updates; the work plan includes public outreach and illustration of street design standards. The department also reported an islandwide trail plan funded by a state multimodal planning grant and said the plan’s consultant will be selected and under contract in coming months.

Deputy Director Dennis Lynn and Research & Development staff summarized grant work and community programs, including ARPA-supported food access and early childhood initiatives, film and creative-media outreach, and a continuing focus on invasive-species grants tied to coconut rhinoceros beetle and other biosecurity threats. R&D said it has been moving the office toward an economic-development focus and is working to formalize program funding lines for sustained community programs.

Administrator Laura Acasio described early work by the Office of Sustainability, Climate, Equity and Resilience (OSCAR), which stood up staff and dashboards to monitor county energy use and ICAP implementation, helped secure three grants worth $1.2 million so far and is building a grants-management prototype for interdepartmental use. Acasio said OSCAR will prioritize standing up core operations and hired staff before expanding travel and external engagements.

Douglas Lidd, Disaster Recovery division, reported on the voluntary buyout program for properties impacted by the 2018 Kilauea eruption: 459 acquisitions closed (about $79 million paid) with 62 properties in escrow and 84 in eligibility review; the county remains in close monthly partnership with HUD and said it has received no notice of funding clawback from the federal agency. Recovery staff said next steps include demolition and hazardous-debris removal on acquired parcels and work to prepare those sites for long-term stewardship.

Two budget bills were forwarded by the council to full council for adoption: Bill 31, the FY26 operating budget, was forwarded with a 7–0 recommendation (two members absent); Bill 32, the capital budget, was forwarded 6–1 with one no vote. The hearings produced multiple commitments from departments to follow up on specific items — most notably: Public Works’ continued updates on safe routes to school and vehicle fleets; Planning’s timeline for code updates and an islandwide trail plan; Recovery’s demolition and implementation timelines for buyout parcels; and OSCAR’s work to centralize grants and energy data.

Next steps: the forwarded operating and capital bills will go to the full County Council for final consideration. Departments said they will continue to brief council members individually on program timelines, and staff will return with requested detail on enforcement caseloads, the status of grant-funded positions, and final schedules for upcoming procurements and consulting contracts.