Finance and Economic Development Committee FY 2026-2027 Budget Review – April 9, 2026

This was the final day of departmental budget reviews for the fiscal year 2026-2027. The committee heard from the Transportation Agency, Housing Agency, Office of Elderly Affairs, Office of the County Auditor, and Office of the County Clerk (including elections). The meeting opened with public testimony focused on homelessness and safe zones, followed by detailed budget discussions on each department.

Public Comments & Testimony

• Dan Freund (Kapahi resident): Asked the council to meaningfully increase funding for nonprofits serving the homeless, citing Hawaii Island's $5.5 million budget. He requested $1.5 million for Kauai, arguing it is a small price for a civilized society.
• Dan Freund (continued): Asked for $500,000 of that $1.5 million to be earmarked for a safe park zone. He mentioned a team of seven working on a plan but no formal proposal yet. Councilmember Holland asked for the plan and contact information. Freund stated they are working with Hoʻokipa Kauai and other nonprofits.
• Kino Shigekane (with Hoʻokipa Kauai): Shared personal experience of homelessness and described barriers such as the lengthy certification process (3–4 months) through Family Life Center to qualify for housing programs. Emphasized the need for immediate safety zones and criticized the lack of proposals. Called for $1.5 million total with $500,000 earmarked. Clarified that certification is required to get on housing lists.
• Kipo Hookano (spelled K-I-P-O H-O-O-K-N-O): Described six years of homelessness, theft of belongings, difficulty finding safe places to sleep, and inability to afford camping permits. Stressed that many homeless are born and raised on Kauai.
• Dan Freund (second testimony): Cited research that homelessness costs the community up to $35,000 per person annually (trash pickup, DLNR, medical), while low-income housing costs as little as $14,000–$18,000, and safe parking could cost as little as $2,000 per person per year. Discussed “beach legs” – infections from lack of hygiene – leading to high ER costs. Expressed frustration that people on housing lists lose opportunities when they cannot be reached because their camp was torn down and they have no phone. Councilmember Holland asked about the percentage of homeless with cars; conversation turned to land availability and a potential 14-acre site at Ahukini business plaza. Councilmember Cowden stressed the need for at least three safety zones in different regions. Councilmember Carvalho asked if they are working with the Kauai Community Alliance.
• Judith White (mental health professional, 25–26 years on Kauai): Strongly supported safety zones from a mental health and budget standpoint. Offered free consultation.
• Yelena Okman (20+ year resident, real estate agent): Expressed heartbreak over homelessness, noted safety concerns, and offered volunteer support from realtors for building projects.

Discussion Items

• Transportation Agency (Celia Mahikoa, Executive on Transportation; Leonard Peters, Assistant Executive; Weenie Hapna):

  • Continued Sunday service suspension due to driver/dispatcher shortages. Ridership slightly increasing post-COVID.
  • $170,000 annual low-income bus pass program distributed to 15–20 nonprofits; funding fully consumed. Councilmember Cooley suggested renaming the line item “grant-in-aid.”
  • Four electric buses operational since January 5, 2026; positive feedback from drivers and growing ridership, especially among students. Battery usage efficient.
  • Base yard expansion includes chamberization of a water basin to maintain flood capacity while adding 42 bus parking spaces.
  • Personnel: 12 bus driver vacancies; two selections made, three more starting April 16, plus continuous recruitment. Chair questioned targeted CDL recruitment campaign similar to KPD’s successful effort.
  • Budget pages reviewed: admin funded by GET (page 276–277), operations from highway fund (page 278), salaries and vacancies (page 280–281), fuel costs noted as possibly increasing.

• Housing Agency (Adam Roversi, Director):

  • Budget relatively flat. Four Section 8 vacancies intentionally left unfilled due to federal funding uncertainty; now moving to fill.
  • Major projects: Waimea 400 subdivision and Kilauea subdivision (combined ~700 new homes) progressing through environmental review; Puhi acquisition ($5 million) in escrow.
  • Kīlauea phase two (26 units supportive housing) wrapping up; fourth supportive housing project adjacent to Mahelona campus pending state land control.
  • Rice Street apartments (60 units) expected December 2026; Oʻahu Ridge project (156 rental units) early 2027.
  • Homeless grant-aid program: 12 applications totaling $1.7 million received; 10 completed, 5 awards issued out of $500,000 available. Councilmember Holland noted capacity to increase funding, possibly to $1.5 million with $500,000 earmarked for safe zones.
  • Liability concerns were cited as a historic barrier to safe parking; director stated the administration is open to a nonprofit partner operating such a site.
  • Supportive housing transitions: goal of two years; most move to permanent housing. Waitlists remain long.
  • State’s Kauhale program has no project on Kauai to date. Director noted the mayor’s desire for supportive housing in every district.
  • Budget pages reviewed: page 226 (vacancies), page 227 (building RM), page 228 (programs).

• Office of Elderly Affairs (Emily Ishida, Executive on Aging):

  • Key ask: $181,000 for nutrition programs (home-delivered meals, congregate meals, in-home services) and digital literacy, elder abuse conference, fitness program.
  • Home-delivered meals: 290 consumers, five days a week. Waitlist eliminated. Congregate meal cost doubling from $10 to $20 per meal.
  • RSVP program: 41 workstations, ~25,000 hours of service.
  • In-home assessments include referrals for bus passes and other services. Councilmember Cowden praised the thoroughness.
  • Vacancies: community service program assistant (interviewing), accounting technician (filled), return rights position (temporarily filled).
  • Grant-aid line item ($60,000) supports two food banks for seniors; level-funded.

• Office of the County Auditor (Jade Fountain Tanegal, County Clerk):

  • County auditor position vacant; on continuous recruitment. Previously unsuccessful despite 100+ applicants; used a headhunting firm from Oahu.
  • Budget includes $180,000 for external audit (CAFR) and $600,000 for performance audits (in council budget, not auditor’s). Council discussed the difficulty of filling the position and high cost (~$1 million fully staffed). Chair emphasized need for a qualified government auditor, not just a contract manager.

• Office of the County Clerk / Elections (Jade Fountain Tanegal and Linda Nyoshioka):

  • Building issues: elevator down (accessibility challenges), plumbing, leaking glass atrium, rotting windows, sewer line (to be fixed soon). Chair expressed frustration that past budget approvals for painting and AV system have not been executed, suggesting the council take over procurement.
  • Election preparations: tightening mail voting process (return identification envelope scanning), updating signature database. Voter service center will maintain single location (basement) due to high per-site cost (~$100,000 for the 10-day period). Councilmember Holland asked about adding two more sites for election day only; director said it’s possible but costs unknown.
  • Volunteer/staffing: losing experienced temporary workers due to public hostility; training is a challenge. Councilmember Cooley offered to add funding to strengthen confidence; director was unsure money would help.
  • Follow-up on SAVE Act: no final status; if passed, could force pivot to in-person voting, but Kauai lacks equipment.
  • Council member positions: discussion on funding constituent relations coordinators; chair proposed not funding vacant seats for departing members.

Key Outcomes

• Clerk’s building: Chair signaled intent to move CIP funds into the council’s own budget to independently procure painting, AV system, and security cameras, bypassing administration delays. Councilmembers expressed support.
• Homeless grants: Several councilmembers indicated willingness to increase the $500,000 grant-aid program, possibly to $1.5 million, with $500,000 earmarked for safe parking/safety zones, provided proposals meet criteria. Director confirmed the process can accommodate increased funding.
• Bus pass program: Council considering raising the $170,000 allocation if nonprofits show waitlists; director Celia Mahikoa expressed openness.
• Performance audits: $600,000 in council budget for contracted performance audits; no change.
• Transportation Sunday service: Chair urged targeted CDL driver recruitment; councilmember Colin offered to help with advertising. Director noted eight additional drivers could restore Sunday service.
• Election improvements: Council will consider request from elections office for more in-person voting sites as budget process continues.
• All budget callbacks scheduled for April 10, 13, 14, 16, and 17, 2026 were cancelled.
• Meeting adjourned.