Finance committee forwards county operating and capital budgets, highlights wastewater and capital pressures

The Hawaii County Committee on Finance voted April 8 to forward the mayor's proposed operating budget and the proposed capital improvements program to the full County Council with favorable recommendations. Committee members moved to advance Bill 31, the operating budget, and Bill 32, the capital budget, after presentations from the mayor and finance staff and public testimony.

The proposed operating budget for fiscal year 2025–26, introduced by Mayor C. Kimo Alameda, totals $937,740,471 in estimated revenues and appropriations, a 1.8% increase compared with the current year, Alameda said. Finance Director Diane Nakagawa told the committee that about $660 million of that total is taxes and that about 80% of that tax total is property taxes.

The proposed capital improvements program includes 81 projects and a stated appropriation package the mayor presented as approximately $555,000,000 in total appropriations, of which the administration has identified roughly $514,600,000 intended to be funded in whole or in part by bonds, about $36,750,000 by federal grants, and about $3,700,000 by community benefit assessments and other sources.

Committee discussion centered on big, multiyear obligations that will limit the county's capacity to pay for new projects. Nakagawa and Alameda emphasized large, legally required capital work on wastewater systems as a principal driver of the county's finances: Alameda told the committee that about $337,000,000 is already being allocated for a major wastewater repair program.

'20This administration has prioritized public safety and infrastructure while trying to hold the line on taxes,' Alameda told the committee. Finance staff said the county's bond rating has been affirmed (double-A plus) and that the county had developed a debt-capacity model to assess the timing and scale of future borrowings.

The committee voted to forward both bills with favorable recommendations. For Bill 31 (operating budget), the motion to forward was made by Council Member Inava and seconded by Council Member Villegas; for Bill 32 (capital budget), the motion to forward was made by Council Member Reynaldo and seconded by Council Member Eustace. In committee the actions were recorded as motions carried to send the bills to full council with favorable recommendation and to file related communications; no full roll-call council votes were held during the committee session.

Why it matters: Finance staff and the mayor emphasized that the county faces a multi-year capital squeeze. Committee members repeatedly asked staff to produce clearer, multi-year CIP (capital improvement program) prioritization and status information that shows which previously appropriated projects remain active, which have lapsed, and which funds are actually allocated and encumbered. Nakagawa told the committee the county is establishing a CIP manager position and working on an assets/tracking dashboard to provide that clarity.

What comes next: The committee referred both bills to the full council for consideration. The council will consider the mayor's proposed operating and capital budgets, review departmental corrections and requests, and may propose amendments before final readings and adoption.

Sources: Budget presentations and Q&A at Hawaii County Committee on Finance meeting, April 8, 2025. Quotes and figures attributed to Mayor C. Kimo Alameda and Finance Director Diane Nakagawa.