Budget panel reports out $34.4 million recharacterization to pay hazard‑pay settlements

The Honolulu City Council Budget Committee on Jan. 13 reported out Resolution 25‑331, which recharacterizes $34,400,000 in the FY2026 provisional hazard‑pay appropriation from current expenses to salaries so the city can more efficiently process remaining hazard‑pay payouts tied to union settlements.

Andy Kawano, director of Budget and Fiscal Services, told the committee the action is a “recharacterization of the provisional that we adopted” and not a request for new appropriations. He said the change will allow the city to record and distribute payments for unions still in settlement or cleanup stages, naming the Honolulu Firefighters’ Association (HFFA) and Teamsters as primary groups still affected and indicating OTS negotiations remain ongoing.

Deputy Director Jennifer Walter of the Department of Emergency Management described a separate transfer (Resolution 25‑327) intended to bridge grant timing changes that would otherwise interrupt position funding, underscoring the committee’s focus on avoiding service gaps.

Longtime transit and labor advocate Donald Sakamoto, testifying remotely, urged the committee to pass the resolution so bus and paratransit operators represented by the Teamsters receive hazard pay, saying these operators have “died from COVID on the bus and the handy van side.” Chair Okimoto recommended the resolution be reported out for adoption after there were no objections from committee members.

The committee took no roll‑call vote in the hearing transcript; Chair Okimoto stated the resolution was ordered reported out for adoption after no objections were raised. The administration told the committee that the FY2025 $115 million provisional was encumbered and that BFS will determine any eventual lapses once final payouts are settled.

Next steps: The council executive process will carry the resolution forward for adoption by the full council as a reported out item from the budget committee.