Hawaii County Council 42nd Session – June 4, 2026: Budget Bills Passed
Hawaii County Council 42nd Session – June 4, 2026
On June 4, 2026, the Hawaii County Council met in Hilo to consider and pass the Fiscal Year 2026-2027 operating and capital improvement budgets. The meeting began with an invocation by Pastor Ian Tahon, followed by roll call (8 members present, one absent). No public testimony was offered. The council approved several amendments to Bill 135 (operating budget) and Bill 136 (capital budget) before final passage.
Discussion Items
Bill 135 – Operating Budget (Draft 3)
- Amendment 754.11 (Councilmember Kagiwada): Added $25,000 from fund balance to the Animal Control agency for dangerous dog signage, required under state law (HRS 711-1142). Acting Administrator Sharice Emmons explained the county must provide signs to owners of designated dangerous dogs. Discussion touched on state mandates, county liability, and staffing challenges (30-31 out of 48 positions filled). The amendment passed 8-0-1 (Councilmember Connelly Kleinfelder absent).
- Amendment 754.12 (Councilmember Viegas/Chair Inaba): Adjusted Public Access Open Space (PONC) and PONC Maintenance funds to reflect real property tax increases. The amendment increased real property taxes by $16.8 million, decreased fund balance, and allocated $336,000 to PONC and $42,000 to PONC maintenance. Passed by voice vote 8-0-1.
- Amendment 754.14 (Councilmember Houstis): Added $2 million of state grant funds for a Safe Routes to School program coordinator contract position. Engineering Chief Kelly Thompson confirmed the position is fully state-funded. Passed by voice vote 8-0-1.
- Amendment 754.15 (Councilmember Houstis): Transferred an additional $2 million from fund balance to capital projects, beyond the administration’s proposed $15 million. Director of Finance Diana Kagawa noted the administration reduced the transfer from $30 million (prior year) to $15 million based on departmental capacity to complete projects. Several councilmembers expressed concern about general undesignated funding. The amendment passed 5-3-1 (Councilmembers Galimba, Kagiwada, and Vice Chair Onishi voting no; Councilmember Connelly Kleinfelder absent).
Bill 136 – Capital Improvements Budget (Draft 3)
- Amendment 755.10 (Councilmember Houstis): Updated the Spencer Colony Shroot District New Community Center/Shelter project to reflect a state commitment of $5 million (down from $7.5 million) and added a $7 million county match. Passed by voice vote 8-0-1.
Property Maintenance Concerns (Councilmember Kimball)
- Councilmember Kimball raised urgent safety issues regarding county-owned parcels, particularly an 80-acre parcel in Honokaa (near a preschool) where fires, gunshots, and homeless encampments have occurred. He noted the county is one of 40 co-owners and over $250,000 in back taxes are owed. Corporation Counsel Rene Nation confirmed the mayor’s office is taking steps to clear the property. Director Kagawa explained that property management is working to catalog and assign responsibility for all county-owned lands, but the process is complex due to historical assignments. Councilmember Viegas commended finance leaders for addressing systemic inefficiencies.
Key Outcomes
- Bill 135 (Operating Budget), as amended, passed on second and final reading. Vote: 8-0-1 (Councilmember Connelly Kleinfelder absent). The budget appropriates $975,980,388 with estimated revenues of $976,408,620.
- Bill 136 (Capital Improvements Budget), as amended, passed on second and final reading. Vote: 8-0-1. Total appropriations of $380.2 million, with funding from bonds, federal/state grants, private funds, and PONC maintenance.
- The council acknowledged Deputy County Clerk Aaron Brown’s 10 years of service.
- The meeting adjourned at 10:17 a.m. following a moment of reflection on a fatal crash on Saddle Road.
Meeting Transcript
Aloha Kaka Hiyaka and welcome to the 42nd session of the Hawaii County Council. The date today is June 4th, 2026, and we're meeting here in our Hilo Chambers at 25 Ao Puni Street. To begin today's meeting, I'd like to call on Pastor Ian Tahon to provide our invocation. Good morning, Chair. Good morning, everybody. Before we begin, I'd just like to say thank you for this opportunity to open every day in prayer. If you folks would mind bonding your heads with me. Heavenly Father, we thank you for this day and for the opportunity to gather together in service of our community. So today we humbly ask for your presence and guidance as this con as this council conducts the business before them. Got these leaders' wisdom to govern will, courage to do what is right and discernment to see beyond immediate concerns that will bless that will best serve future generations. Help them to lead with a heart for our community and for the good of the people they have been called to serve. We pray for unity where there may be differences, understanding, where there may be disagreements, and it be respect in every conversation. May this meeting be marked by thoughtful discussions, wise decisions, and a shared commitment to the well-being of our county. Lord, we lift up our community to you. We pray for our families, our children, our schools, our businesses, our healthcare workers, our law enforcement officers, our first responders, and all those who work each day to strengthen and serve this county. Bless them, protect them, and provide their needs. We also remember that true leadership is found in service. And as Jesus taught us, whoever desires to be great must become a servant. May the spirit of humility and stewardship guide every decision made here today. We ask for your favor upon this county, and that it would be a place of hope, opportunity, justice, and peace. May we be faithful stewards of all that you've entrusted to us. We commit this meeting into your hands and ask for your blessing upon it. In the name of our Lord and Savior Jesus Christ, we pray. Amen. Thank you. Mahalanui, Pastor. With that, calling this meeting to order 902 a.m. Mr. Clerk, roll call, please. Councilmember Galimba. Here. Councilmember Houstis. Present. Councilmember Kagiwada. Here. Councilmember Connie Lee Kleinfelder. Councilmember Kirkowitz. Present. Councilmember Kimball. Here. Vice Chair O'Neshi. Present. Councilmember Viegas. Ail. Chairinava. Ail. Chair, you have eight members present. You have quorum. Thank you. Mr.
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