Honolulu Budget Committee Meeting on FY27 Operating Budget - May 1, 2026
Honolulu Committee on Budget Meeting on FY27 Operating Budget
On May 1, 2026, the Honolulu City Council's Committee on Budget, chaired by Councilmember Okimoto, convened at 10:40 AM to review the proposed FY27 operating budget (Bill 22, CD2). The meeting began with opening remarks from the chair emphasizing transparency, accountability, and intentional budgeting, followed by testimony from the administration and the public. The committee then conducted a line-by-line review of departmental budget amendments, hearing from department directors and accepting numerous amendments. The meeting recessed at 12:50 PM to reconvene at 1:30 PM.
Public Comments & Testimony
- Liza Ryan Gill (Hawaii Coalition for Immigrant Rights) testified in strong support of restoring positions for the Office of Economic Revitalization (OER), highlighting the community equity liaisons' bilingual, bicultural work during disasters like the Kōnolo floods. She noted that OER's outreach included Ilocano, Chinese, and other languages.
- Holly Rader expressed support for financial assistance to farmers impacted by Kōnolo storms and opposed cuts to OER, stating the office is a pillar for farmers and small businesses.
- Josh Wish (Holomua Collaborative) supported restoring OER funding, arguing that budgets are statements of priorities and eliminating the only agency focused on economic revitalization sends the wrong message during tough economic times.
- Sherry Menor (Chamber of Commerce Hawaii) supported OER, emphasizing its critical partnership for small businesses.
- Hunter Hey Villan (farmers' advocate) supported amendments for a grant program for farmers, noting 250 farmers on Oahu suffered $20 million in losses, with only 60 benefiting from federal non-insured crop assistance in 30 years. He urged the city to step in.
- Kieran Polk (Kapalay Chamber of Commerce) supported OER, citing its role in helping small businesses start on the Waiʻanae Coast.
- Dottie Kelly Paddock (HUI O Haʻula) supported the administration's budget, specifically DEM's disaster provisional funds and increased capacity.
- Amy Agbayani strongly supported OER, calling it a real asset and investment.
- Mark Anthony Clemente (Hawaii Regional Council of Carpenters) supported the loan forgiveness program for engineers in Bill 22 CD1, calling it a smart targeted fix for permitting bottlenecks.
- Gregory Kim (Economic Revitalization Commissioner) supported OER, noting it is a unique resource for economic development.
- Bettina Mock (Legal Clinic) supported restoring OER funds, citing its role in connecting immigrant communities to government resources.
Discussion Items
- Opening Remarks: Chair Okimoto outlined the committee's goal to protect services, civil service jobs, and public trust, stressing that budget amendments are not about weakening services but about ensuring taxpayer dollars are used responsibly. He noted that the city has lapsed hundreds of millions of dollars in past budgets.
- Administration's Concerns: Managing Director Mike Formby objected to the CD2's proposed Section 13, which consolidates $41 million in provisional funds into one omnibus account, arguing it violates separation of powers and reduces transparency. BFS Director Andy Kawano added that the cuts to provisional accounts for disaster preparedness and recovery would hamper operations, requiring time-consuming resolutions for emergency funding.
- Department of Budget and Fiscal Services (BFS): Director Kawano detailed specific cuts to his department, including $10,534 for risk management (travel to London to educate insurers about Oahu's geography), $55,328 for accounting (annual financial report and GFOA certificate), $194,635 for treasury (system upgrades for downtown BID), $60,991 in salary reductions for real property (despite progress in filling vacancies), $97,908 for current expenses (system maintenance and mail outs), $4,697 for budget administration (basic operations), and $5,291 for fiscal CIP (supplies).
- Department of Information Technology (DIT): Deputy Director Stephen Courtney requested restoration of $730,997 across six critical areas: Microsoft 365 migration and P25 emergency radio console ($257,396), application division salary ($61,344 for ADA compliance), operations division salary ($56,530 for data center operations), technical services salary ($71,747 for cybersecurity), ERP/CSR salary ($209,097 for financial and service request systems), and communications/network salary ($74,007 for fiber optic and surveillance infrastructure).
- Corporation Counsel: Dana Viola opposed a 30% reduction in current expenses ($1.28 million) and the transfer of the judgment and losses (JNL) provisional account, warning it would jeopardize the city's ability to represent agencies and employees, especially in cases requiring outside counsel. She noted that after disasters, claims against the city often arise and can take years to resolve, costing hundreds of thousands of dollars.
- Department of Human Resources (DHR): Director Nola Miyasaki requested restoration of $330,000 in cuts, noting DHR is a small department (90 employees) that manages citywide HR functions. She highlighted that a $4,222 reduction in current expenses would impact the firefighter recruit exam, which costs $10,000-$20,000, and that cuts to salaries could force elimination of positions or overtime.
- Department of Planning and Permitting (DPP): Director Dawn Apuna noted that the CD2 still contains cuts of $4.46 million under administration, affecting Bill 7 pre- and post-construction grants (reduced from $4 million to $3 million). This could lead to turning away applications and hinder housing development. She also noted that a 19% cut to the planning division would slow work on plans like the North Shore sustainability plan and TOD plan.
- Department of Facility Maintenance (DFM): Director Jean Albano requested full restoration of cuts, citing increased costs of materials and the need to restore workforce.
- Department of Design and Construction (DDC): Director Aku Millis requested reinstatement of salary and current expense reductions, noting active recruitment and recent hires.
- Chair Waters noted that DPP lapsed $11.2 million in FY24 and $9.2 million in FY25, and that funds moved to the provisional account can still be accessed via council resolution.
Key Outcomes
- The chair accepted amendments for the Managing Director's Office, Department of Customer Services, BFS, DIT, Corporation Counsel, Prosecuting Attorney, DHR, Honolulu Emergency Services Department, DPP, DFM, and DDC as listed in the agenda pages.
- On page 18, the chair rejected an amendment that added 20 FTEs for stream maintenance and substituted it with a new amendment reducing FTEs to 10 and reducing the appropriation from $1,665,800 to $1,230,000.
- The meeting recessed at 12:50 PM with plans to reconvene at 1:30 PM to continue with public safety departments, including the Honolulu Police Department.
- The committee will consider an FD1 (further draft) to address concerns raised by the administration and departments. A memo from the managing director's office detailing department responses is expected in about a week.
Meeting Transcript
Very good. Aloha, good morning and a happy lay day, everyone. It is Friday, May first, twenty twenty-six, and the time is ten forty AM. Well, the committee on budget please come to order. Council members Cordero, Kia Aina, Talbot, and Council Chair Waters also joining us. And welcome today, Council members Dosantos Tam and Tupala. Although remote oral testimony is being permitted, this is a regular in-person meeting and not a remote meeting by interactive conference technology under HRS Section 92-3.7. Therefore, the meeting will continue notwithstanding loss of audiovisual communication with remote testifiers or loss of the public broadcast of the meeting. Members of the public are allowed to provide oral testimony on all items on the agenda in two ways in person in the council chamber and remotely via video conference or phone. Remote and in-person oral testimony will be allowed when each agenda item is taken up. Before testifying, each person shall state their name. Each speaker may not have anyone else read their statement and is limited to a one-minute presentation on each item. As both English and Hawaiian are official languages of the state of Hawai'i, pursuant to Article 15, Section 4 of the Hawai'i State Constitution and Section 1-13 of the Hawai'i revised statutes, members of the public may testify in either language. For oral testimonies offered in Olalo Hawai'i, additional time as may be necessary will be allowed for the testifier to provide an English translation of their testimony. All persons who have registered to testify in person will be called upon first. When your name is called, please come up to the testifier podium. Persons who have not registered will be given an opportunity to testify following the registered testifiers. After in-person testimony has concluded, I will proceed to remote testimony via video conference or phone. When I call your name, please monitor your screen and follow the prompt to unmute. For those who are joining us by telephone only, please press star 9 if you wish to testify, and I will identify you by the last three digits of your phone number. When your number is called, please listen for the prompt to unmute and press star 9. Some friendly reminders and tips. Video conference from a quiet location if possible. If you are also watching the proceedings on OLEDO, please mute your television at the time you are called to testify. When the timer on screen reaches zero, please conclude your remarks promptly. Written testimonies, including the testifiers' address, email address, and phone number will be available to the public as described on the posted agenda. As a courtesy, please turn off or silence all cell phones for the duration of this meeting. Members, I planned to break for lunch today. The start time and duration will be dependent on the following on the flow of the meeting. Before we move on to agenda item number one, I just want to take a quick brief moment. Oh, sorry, I would like to also welcome to the chamber, Councilmember Wire. But I would just like to take a quick moment to thank my staff, my colleagues, all of you sitting here with us today, the Office of Council Services, the City Clerk's Office, and the Council Support Services Office for their hard work preparing for this important hearing. The proposed budget is about delivering services to the people of Oahu in an economic environment where revenues are flat, but costs are expected to grow exponentially. The proposed budget before you is about building a more transparent, accountable, and intentional city government. Mayor Blanji already submitted his proposed budget to the council back in March, and the committee respects the work that went into that proposal. However, this committee and the council has an independent responsibility to review, question, adjust, and make improvements to the budget before it is passed. Council oversight is not an obstruction, it is oversight, and the role Oahu residents expect this council to perform. For years, the city budget has lapsed hundreds of millions of taxpayer dollars, money that was budgeted but not always spent. Positions that were funded but not always filled. Projects that were listed but not always delivered on time. As the budget committee chair, my team look for a more direct, disciplined, and accountable path. Our goal is simple. Protect services, protect civil service jobs, and protect the public's trust. We are focused on maintaining the core city services while keeping Honolulu financially strong, which includes protecting our high bond rating. The budget amendments will be discussed that will be discussed today do not weaken city services, but they pose a harder and honest question. Are taxpayer dollars being responsibly used in a way that delivers achievable results? If money is set aside year after year but not spent, taxpayers deserve to know why. If positions are funded year after year but remain vacant, taxpayers deserve to know if those dollars could be better aligned with core city services. If projects are listed but delayed, taxpayers deserve clearer timelines, stronger planning, and better follow through. Every dollar must have a purpose, and every project must have a plan.
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