Committee forwards $70 million budget amendment for COVID-era hazard pay

The Hawaii County Council Committee on Finance voted April 1 to forward to the full council a proposed $70,000,000 amendment to the county—s operating budget to pay temporary hazard pay for covered employees who worked during the COVID-19 pandemic.

Finance Director Diane Nakagawa told the committee the amendment would increase the fund-balance appropriation by $70 million and that the amount is an initial estimate based on the county—s current financial system. "This is for our temporary hazard pay. This is for all covered employees. We've reached preliminary settlement agreements with all four unions," Nakagawa said, naming EPW, HFFA, SHOPO and HGEA as the bargaining units covered by the estimate.

The amendment would move funds from the county—s fund balance to the provision for compensation adjustment general account to pay hazard pay for covered work performed from March 2020 through March 2022. Nakagawa said the $70 million is a conservative estimate given limitations in the county's 20-year-old payroll system and that calculating precise payouts will require a detailed, labor-intensive review of time sheets.

Councilmember Reynaldo moved to forward the bill to council with a favorable recommendation; Councilmember Eustace seconded the motion. Councilmembers who spoke during the committee praised the administration and prior officials for preserving the funds and expressed support for compensating county workers who performed frontline services during the pandemic. "I'll be in support," Reynaldo said, referring to the measure.

Council members also disclosed personal relationships where relevant: one member disclosed a significant other who is a member of the Hawaii Fire Department, one said family members work in the fire department, and another said a daughter works in the police department.

Clerk records show the committee vote in favor and the motion carries to forward the amendment to the full council for consideration.

What the amendment does: it increases revenues in the fund-balance-from-previous-year account by $70,000,000 and appropriates that sum to a county account to fund temporary hazard pay tied to COVID-19 response during March 2020—March 2022. The county attorney—s office and corporation counsel were on hand to address questions about the union settlements.

Next steps: The committee forwarded the amendment to the full Hawaii County Council for final consideration during the council—s budget process.