Kauai County Finance and Economic Development Committee Budget Decision Making Session - June 4, 2026
Kauai County Finance and Economic Development Committee Budget Decision Making Session - June 4, 2026
The Finance and Economic Development Committee met to consider amendments to the mayor's proposed fiscal year 2026–2027 operating and capital improvement program (CIP) budgets. The committee voted on several proposals, including a major community support package, a specific earmark for the YWCA, and a host community benefit adjustment. Public testimony was heard on one item.
Public Comments & Testimony
- Bruce Hart testified, expressing that all parties have compassion for the poor and that the housing and homelessness crisis requires a spiritual solution. He referenced Proverbs 21:13 and stated that the $364 million budget reflects the community's compassion.
Discussion Items
- Community Support Proposal (Councilmembers Holland and Kanashiro): The committee considered a motion to reduce $700,000 from the Waimea 400 Park CIP project, $40,474 from the Habitat Conservation Plan CIP, and $959,526 from the Lighted Skate Park/Pickleball (Nawiliwili and Hanapepe Town Park) CIP. These reductions would fund increases of $1 million for homelessness programs (with a minimum $500,000 preference for safe zones), $500,000 for adult and adolescent mental health and substance abuse grants (with a minimum $500,000 preference for recovery treatment grants), $200,000 for invasive species mitigation, and $50,000 for low-income bus passes. The proposal also adjusted the general excise tax fund revenue estimate from a $500,000 reduction to a $450,000 reduction. The motion passed 7–0.
- Amendment to Redirect Funding Source (Councilmember Cowden): An amendment was offered to take the $1 million for homelessness from the Housing Development Fund instead of the skate park project. Councilmember Cowden argued that the funding should come from housing-related sources, as homelessness is a housing issue. The housing director stated that removing $1 million would not affect projects in the upcoming year but would reduce the fund's balance needed for future large projects. The amendment failed 2–5 (Councilmember Kuoli recused on the YWCA vote but not explicitly on this amendment? The roll call was: Bolaasan no, Cavallio no, Cowden aye, Holland aye, Kuoli no, Opposal no, Kanashiro no – so 2 ayes, 5 noes).
- YWCA Grant Earmark (Councilmember Cowden): A proposal to modify the Office of the Prosecuting Attorney's grant aid budget by deleting line items for family violence shelter ($170,000) and sexual assault treatment ($150,000) and adding specific line items for YWCA family violence shelter and sexual assault treatment. Councilmember Cowden argued that the YWCA is the sole provider and that earmarking provides stability for grant applications. Opponents cited concerns about fairness and the council's recent policy of not naming specific nonprofits. The motion failed 2–4 (Councilmember Kuoli recused; Bolaasan no, Cavallio no, Cowden aye, Holland no, Opposal aye, Kanashiro no).
- Kekaha Host Community Benefits (Councilmember Cavallio): A proposal to reduce the CIP contingency fund by $237,412 and add that amount to the Kekaha host community benefits line item, bringing it to $1 million. The administration noted that the contingency fund is intended for project overruns and that the Kekaha community had not identified a specific need for the additional funds. The motion failed 0–7.
Key Outcomes
- Community Support Proposal passed (7–0), directing $1.7 million in reductions from specified CIP projects and $1.75 million in additions to homelessness, mental health, invasive species, and bus pass programs, plus a revenue estimate adjustment.
- YWCA Grant Earmark failed (2–4, 1 recusal), leaving the existing grant aid process unchanged.
- Kekaha Host Community Benefits failed (0–7).
- Real Property Tax Rate (Resolution 2026-11) was accepted (7–0).
- Staff Budget Balancing Authority was granted (7–0).
- The committee chair canceled the May 15, 2026 decision-making session and scheduled the formal approval of budget bills for May 27, 2026. Final comments and second reading of the budget are set for June 3, 2026.
Meeting Transcript
Okay. My notes say good morning, but it is afternoon. I'd like to call to order the Finance and Economic Development Committee and the fiscal year twenty twenty six-2027 preliminary budget decision making session. Let the record reflect that all members are present. Today is the council's opportunity to offer amendments to the mayor's budget proposal for the fiscal year twenty twenty six-2027. I'd like to remind the committee that any proposals to reduce or remove an item requires four votes. Any proposal to increase or add an item requires five votes. Please also keep in mind that any additions that you may be proposing should have a corresponding reduction or identification of funding or revenue source. Once a proposal is introduced, I respectfully ask that the members be concise and considerate with their time during the discussion period. As we do uh for each meeting, we will take public testimony. Although we have heard a lot from earlier today. Um but we will take public testimony on the budget ads and cuts for today. Anyone in the audience wishing to testify? I'll suspend the rules. For the rush of Bruce Hart. I didn't get a chance, I apologize. I was gonna come this morning to testify. So I'm gonna speak a little bit upon the prior discussion before lunch. And uh I haven't spoken in quite a while on housing. But I have an opinion. And it's a perspective from what I do, my call. He comes first in everything. The Bible says, Whoso stoppeth his ears at the cry of the poor, he also shall cry himself, but shall not be heard. That's Proverbs 21 13. God has compassion for the poor. And he hears prayer, and he answers prayer. And this problem is not going to be solved by the works of man. That doesn't mean everybody. I had several crises in my early walk. The Holy Spirit told me something. It's not about the problem, Bruce. It's about the answer. And the answer is Jesus Christ. That's it. Everybody has compassion. I believe that every member, and I've gotten up here and defended you. Every member has compassion. The people behind me have compassion. And the people that work and have to provide this $364 million, they have compassion. They don't want to be looking mean either. But they have a hard time meeting their bills. Thank you. Okay. Thank you. Anyone else wishing to testify? Second time anyone? Not public testimonies over. I did have a few more notes to read. As usual, I want to respectfully ask that council members make their final commentary on the budget during the second and final reading, which is scheduled for Wednesday, June 3rd, 2026, rather than at the end of decision making today or in committee next week. This request is being made so that council services staff can immediately be in work, uh, begin working to incorporate any changes made during today's budget session and prepare any posting notices, floor amendments, etc.
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