Budget Director details procurement overhaul, downtown BID plan and $1.2M vacancy reallocations

Budget Director Andy Kawano presented the Department of Budget and Fiscal Services’ FY2027 priorities to the Committee on Budget and Fiscal Services on March 9, 2026, highlighting a procurement modernization effort, investments to stand up a downtown Business Improvement District and targeted use of salary savings from vacant positions.

Kawano said the procurement improvement project began this year with outside consultants and that the department budgeted $300,000 in FY2026 to start the work. “We budgeted $300,000 in FY '26,” he said, adding that the work will continue into FY27 and that the department proposed another $300,000 placeholder for software to modernize the procurement lifecycle.

Why it matters: Kawano told council members the procurement effort aims to speed purchasing, reduce manual spreadsheet exchanges with nonprofit partners, and centralize oversight where appropriate. He said procurement staff will be consolidated into the municipal building to improve workspace and customer service.

Kawano also described plans to stand up a Downtown Business Improvement District that would levy assessments in the area and target services such as security, street cleaning and decorative improvements. “Plan to spend a million 8 on security measures,” he said, describing a rough total BID assessment target of about $1.8 million and noting that the BID will require administrative support and improved data‑sharing with nonprofit partners.

Council members pressed BFS on how vacancy savings are being used. Kawano and staff said BFS reallocated about $1.2 million of salary dollars from vacant positions and is directing those funds down to divisions by priority. He described that process as based on lapping trends, vacancy percentages and department‑level staffing needs.

Other budget items: the department proposed a $45,000 vehicle replacement for the Real Property Assessment team based at Kapolei Hale, $20,000 for workspace upgrades to support the downtown BID, and a $100,000 nonrecurring augmentation (potentially contracted to local CPAs) to assist initial BID operations. Kawano said the CIP project adjustment account will be used to move relatively small surpluses between projects when bids come in lower than appropriated amounts.

What’s next: Council members asked BFS for follow‑up detail on transaction‑level activity in the project adjustment account, carryover by department and lapsed salary figures for FY2024–FY2025; BFS committed to provide that detail. Several members also asked for clarification about procurement working group contract terms and whether multi‑year or renewable one‑year contracts would be used; BFS said they expect consultant recommendations before settling the longer‑term contract structure.

Because this presentation contained several proposed and nonrecurring items, councilmembers noted the need to balance staffing, operations and equipment requests across departments during the amendment process.

Ending: The committee moved to a question‑and‑answer period with BFS staff after the presentation; BFS staff said more detailed budget breakdowns would be provided to members on request.