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Bissen presents budget

By Staff | Mar 27, 2024

Mayor Richard T. Bissen Jr. today presented his proposed Fiscal Year 2025 budget to members of the Maui County Council.

The proposed budget of $1.697 billion includes $1.075 billion in operating expenses, $180.2 million in capital improvements, $379.4 million in grant revenue and $75.0 million in revolving funds. Total estimated revenue from all sources of funds for FY 2025 is $1.634 billion including outside revenues that are expected to provide much of the increase required to fund wildfire recovery measures.

The proposed budget reflects approximately a $153 million increase in FY 2025 operating funds, and just over $146 million, or 95.3% of that increase is attributable to wildfire-related departmental expenses.

In support of the increased costs for wildfire recovery, fiscal restraint was exercised in the County operations budget. Excluding any wildfire expenses, the Mayor’s budget proposal sustains a 1.2 percent increase in its department operating budget; all departments were asked to maintain level budgets wherever possible.

“This budget was constructed to address Maui County’s recovery efforts, critical housing and infrastructure challenges,” Mayor Bissen said during the presentation. “It also ensures that ongoing projects and current services continue to be provided, and addresses preparedness and mitigation efforts for future disasters. Above all, I believe it is all of our kuleana to keep the people of Maui Nui safe.”

The Maui wildfires placed an inordinate amount of demand on the County for both human and financial resources, including rescue operations, recovery, housing, provisioning, debris removal and infrastructure replacement and repair, Mayor Bissen continued. “These efforts continue into FY 2025 as we start the process of healing our community, while continuing everyday County operations on Maui, Moloka’i and Lānaʻi.”

Other Maui wildfire-related departmental expenses include: implementing an updated communication system for our Police Department, increasing 29 front-line firefighter positions in our Fire and Public Safety Department, planning, designing and construction of a new Haʻikū fire station (including a new pumper truck), adding a dedicated water tanker for Napili, and new off-road mini-pumpers assigned to Kīhei, Makawao, and Wailea. Maui Emergency Management Agency (MEMA) will also be staffing personnel in Moloka’i, Lānaʻi and Hāna for enhanced responses in those areas. Positions have also been added to to the Department of Corporation Counsel for wildfire-related information requests and increased legal matters.

The budget proposal also reflects the County’s request of approximately $150 million from the State, and a bridge loan from Hawaiʻi Community Foundation for $54.5 million to directly support recovery efforts, including housing and infrastructure.

General Excise Tax (GET) projected revenues of $45 million are anticipated to support multiple infrastructure projects across the county, including the Molokaʻi Reliable Capacity water project, Lānaʻi Waste Water Reclamation Facility North plan, Kamole Water Treatment Plant filter upgrades and North Kīhei Mauka transmission system. As directed by Council, 20 percent of GET funds will be directedfor Department of Hawaian Homeland infrastructure projects.

Maui Countyʻs Transient Accomodations Tax (TAT) share of $60 million will be critical in supporting growing community needs through the General Fund.

The budget’s proposed increase of $429.2 million represents a 33.9 percent increase from the $1.268 billion in the Fiscal Year 2024 budget that was adopted by the County Council. This increase is primarily due to wildfire recovery costs and the establishment of the Department of ‘Ōiwi Resources and the East Maui Water Authority budgeted at $1.8 million and the bifurcation of the Department of Housing and Human Concerns, which were adopted by the council and voted into approval by our residents in 2022.

The Department of ‘Ōiwi Resources commits the County to being “mindful of our Hawaiian history, heritage and culture” and “fulfilling the philosophy decreed by the Hawaiʻi state motto, ‘Ua mau ke ea o ka ‘āina i ka pono.”

The East Maui Water Authority that will oversee the Nāhiku, Ke’anae, Honomanū and Huelo license areas and is responsible for investigating, acquiring, managing and controlling water collection and delivery systems.

Another additional expense is the new division of the Office of Recovery that provides staffing and framework to lead the implementation of best practices for wildfire recovery efforts in six focus areas: community planning, housing, infrastructure, natural, historical and cultural resources, economic resiliency and health, and social service systems.

The County received a “Distinguished Budget Presentation” award from the Government Finance Officers Association (GFOA) for Mayor Bissen’s FY 2023 budget proposal. The budget proposal was evaluated using GFOA’s nationally recognized guidelines for effective budget presentation, including 14 mandatory criteria in the categories of effectiveness as a policy document, financial plan, operations guide and communications device.

For more information, visit www.mauicounty.gov/budget. To view the FY 2025 budget presentation online, visit the County of Maui Facebook page or www.akaku.org and click on Channel 53.