Kauai County Council Special Meeting and Budget Decision Making - May 14, 2026

The Kauai County Council held a special meeting on May 14, 2026, to receive the mayor's supplemental budget for fiscal year 2026-27 (Communication C 2026-118). The proposed operating budget is $363.9 million and the capital improvements budget is $139.9 million. After receiving public testimony, the council voted to set a public hearing for May 27, 2026, and refer the budget to the June 3, 2026 council meeting. In the afternoon, the Finance and Economic Development Committee conducted a decision-making session, adopting several amendments to the budget.

Consent Calendar

• The agenda was approved unanimously (motion and second; voice vote all aye).
• The committee accepted the supplemental budget as the starting point for decision making (motion and second; roll call 7-0).

Public Comments & Testimony

Numerous community members testified, primarily on homelessness and houselessness, and on funding for the Tutu and Me traveling preschool program. Key positions included:

• Sharon Silva: Supported more funding for homeless/houseless.
• Rowanna Pangan: Argued the homelessness count is underreported and that the definition of houseless excludes many; requested increased allocation from $500,000.
• Tommy Passero: Advocated for safe zones and creative solutions; noted $500,000 is insufficient.
• Marvel Cott: Stated $500,000 is not enough; suggested $1.5 million; criticized lack of land for housing the homeless.
• Laura Lindsay (nonprofit worker): Said homelessness counts are at least three times higher than reported; requested investment in safe zones.
• Kino Shigekane and Chad Kia: Asked for at least $500,000 of the budget directed to safe zones; noted other counties spend much more on homeless programs.
• Several speakers (Claire McClark, Amy Zingaro, Malia Guzman, John Kaohilau, Haley Smith) testified in strong support of Tutu and Me, a preschool program that lost federal funding, asking the county to allocate $300,000 to bridge the gap.
• Other speakers (Craig Nakahiki, Keith Adams, Joanna Wheeler, Michaela Wagner, Yelena Okman, Cheyenne Sherman, Leslie Mellon) expressed that funding for homeless services is far too low and urged the council to prioritize people over projects like the skate park.
• A minister testified that financial support for churches to host homeless is needed.
• Tommy Passero (second round) cited Japan and Finland as models for ending homelessness.
• Rowanna Pangan (second round) called for a Puhonua (safe community) model.

Discussion Items

• Supplemental Budget Overview: Administration presented key changes: revenue reductions of $1M in transient accommodations tax (TAT) and $500,000 in general excise tax (GET) due to global economic conditions; increased utility/fuel costs; short-funding 31 positions; adding $300,000 for early childhood development (Tutu and Me); and a $5.2 million land acquisition for the auto shop to free up space for wastewater treatment expansion.
• Homelessness and Housing: Councilmembers debated funding sources for additional homeless services. A proposal by Councilmember Kuli and Holland to reduce $700,000 from Waimea 400 Park CIP, $40,474 from Habitat Conservation Plan, and $959,526 from the Nawiliwili Skate Park/Pickleball project to fund $1M for homeless grants (with preference to safe zones), $500,000 for mental health/substance abuse grants, $200,000 for invasive species mitigation, and $50,000 for low-income bus passes. The administration opposed reducing the skate park funding, arguing it would delay the project. Councilmember Cowden moved to amend the funding source to the Housing Development Fund instead of the skate park, stating it was more appropriate. After debate, the amendment failed 3-4.
• Earmarking YWCA Funding: A proposal by Councilmember Cowden to specifically earmark $320,000 in the Prosecuting Attorney's budget for YWCA family violence shelter and sexual assault treatment was debated. Some councilmembers argued against line-item earmarking, while others highlighted the YWCA's critical role. The proposal failed 2-5.
• Kekaha Host Community Benefits: Councilmember Cavallio proposed moving $237,412 from the CIP contingency fund to the Kekaha host community benefits fund to bring it to $1 million. The administration cautioned against reducing contingency, and the council had no specific project request. The proposal failed 0-7.
• Real Property Tax Rates: The committee accepted the mayor's proposed real property tax rates (Resolution 2026-11) without opposition (7-0 vote).

Key Outcomes

• Vote to accept supplemental budget and set public hearing: Unanimous (7-0).
• Decision-making session adopted comprehensive community support proposal (7-0): Reductions from Waimea 400 Park CIP ($700,000), Habitat Conservation Plan ($40,474), and Nawiliwili Skate Park/Pickleball project ($959,526) to fund:
  • Homelessness grants: add $1,000,000 (total $1.5M) with minimum $500,000 preference to safe zones.
  • Mental health/substance abuse grants: add $500,000 (total $1.5M) with preference to recovery treatment.
  • Invasive species mitigation: add $200,000 (total $400,000).
  • Low-income bus passes: add $50,000 (total $220,000).
  • Revenue estimate for GET fund increased by $50,000 (total reduction $450,000).
• Amendment to fund homeless grants from Housing Development Fund instead of skate park: Failed (3-4).
• Earmark for YWCA: Failed (2-5).
• Kekaha host community benefits increase: Failed (0-7).
• Acceptance of real property tax rates: Passed (7-0).
• Authorization for staff to adjust budget to balance: Passed (7-0).
• The decision-making session was completed; final budget approval scheduled for May 27 (committee) and June 3, 2026 (council second reading).