Budget, Finance, and Economic Development Committee Meeting – January 27, 2026
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Budget, Finance, and Economic Development Committee Meeting – January 27, 2026
The Budget, Finance, and Economic Development Committee (BFED) met on January 27, 2026, at 9:05 AM to consider four agenda items: Bill 2 (2026) regarding Board of Ethics salaries and pay scales; a preliminary report on fiscal year 2025 carryover savings; Bill 9 (2026) amending the fiscal year 2026 budget for water supply integration; and Bill 10 (2026) amending the fiscal year 2026 budget for information technology services. The committee heard no public testimony on any item. All bills were advanced to full council.
Public Comments & Testimony
- No members of the public testified on any agenda item. Written testimony was accepted.
Discussion Items
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Bill 2 (2026) – Board of Ethics Salaries and Pay Scales
- Executive Director Lauren Aketake explained the bill allows the executive director to set staff salaries within council‑approved ranges, authorizes the board to set the executive director’s salary (capped at $227,029), permits hiring additional attorneys (salaries per Maui County Code 2.44.015), establishes a paralegal pay scale, and allows part‑time hiring with prorated pay.
- Aketake noted that the office issued 75 informal advisory opinions in 2025, closed 25 complaints, and is processing financial disclosure statements more thoroughly. Additional staff are needed to handle growing workload and future initiatives (e.g., anti‑nepotism rules, lobbyist updates).
- Committee members discussed the balance between executive director discretion and oversight. Member Batangan expressed a preference for board approval of staff salaries. Member Paulton raised concerns about pay equity compared to civil service. Member Rollins Fernandez supported the bill, noting at‑will employees lack union protections.
- Amendments were introduced to revise the bill title and section E to clarify that additional attorney hiring is limited by the annual budget ordinance and to set attorney salaries per the existing pay scale. The amendments were approved (9 ayes), and the main motion as amended also passed (9 ayes).
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BFED 20 – Fiscal Year 2025 Carryover Savings (Preliminary Report)
- Deputy Director Maria Zelinski presented the report. The general fund unrestricted balance as of June 30, 2025, was $261.1 million; after deducting $137.6 million used in the FY 2026 budget and $24.5 million in certifications, the estimated carryover savings stood at $98.9 million.
- Revenue exceeded budget by $87.4 million, driven by interest earnings ($28.5 million), GET collections ($28.0 million), and TAT ($10.3 million). Unspent salary appropriations (Category A) totaled $45.6 million, with fire, police, and parks as the largest items.
- Members discussed the high carryover amount. Chair Lee questioned whether residents are overtaxed when such large sums accumulate. Member Johnson requested a three‑year history and vacancy‑related breakdown. Member Batangan asked about unencumbered conditional appropriations. The committee deferred the item, with questions to be submitted in writing.
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Bill 9 (2026) – Water Supply Integration and Staffing
- Deputy Director Kimo Landgraf explained the bill reappropriates $10 million from GET funds (previously appropriated but expiring Dec. 31, 2025) for acquisition of private water systems, and creates 10 unfunded positions to allow rapid hiring when systems are acquired.
- Budget Director Leslie Milner noted a technical amendment was needed to correct the GET fund appropriation. The committee received a CD1 version from the budget office.
- Members expressed support. Member U Hodgins asked about timing and location of potential acquisitions; Landgraf could not be specific due to ongoing negotiations. Member Paulton requested alignment with the countywide policy plan. After a motion to replace with the CD1 version (approved 9 ayes), the main motion as amended passed 9 ayes.
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Bill 10 (2026) – IT Services Funding
- Chief Technology Officer Kim Albright and Budget Director Milner presented the bill, which recognizes $3 million in general fund carryover savings for the Department of Management’s Information Technology Services program. The funds will cover the higher‑than‑anticipated cost of the transit accommodation tax (TAT) software procurement ($4.6 million encumbered) and also support Microsoft subscriptions and cybersecurity contracts.
- Member Batangan questioned why the over‑budget procurement was encumbered without prior council approval. Milner explained that carryover savings were recognized after the ACFAR was completed, and an amendment was the most efficient path given the urgency and auditor recommendations.
- Members welcomed Albright and expressed support for modernizing IT. The committee requested a breakdown of the $3 million allocation in writing. The bill passed with 8 ayes (one member absent).
Key Outcomes
- Bill 2 (2026) : Amended and passed on first reading (9 ayes). Will move to full council.
- Carryover Savings Report : Deferred; the committee will submit written follow‑up questions.
- Bill 9 (2026) : Amended with CD1 and passed on first reading (9 ayes). Will move to full council.
- Bill 10 (2026) : Passed on first reading (8 ayes). Will move to full council.
Meeting Transcript
Good morning, everybody. Welcome to the budget finance economic development committee. It is now 9 05 a.m. My name is Yuki Lee Sugimura. I'm the chair of this committee. And at this time, I'd like to introduce all the members. After I just mentioned if you are in a workspace that you need to let us know if there are any minors with you. And we are conducting this meeting in accordance with the sunshine law. So good morning, Kone Batangan, Member Batanga. Aloha Kakayaka Chair. Good morning. Member Cook. Hello, good morning. There's no testifies currently in the KA office. Aloha and good morning. Member Johnson. Aloha and good morning, Chair, Councilmembers, Community Members. There's no testifiers at the Lenay District Office. And I'm alone in my uh workspace here in my house. Thank you, Chair. Okay. Chair Lee. Good morning. Aloha Kako. Aloha. Member Paulton. Aloha kukayako kaku. Member Rollins Fernandez. Aloha could pay. My Molo Kainoya Hina. I'm at my private residence alone here, and there are currently no testifiers at the Molokai District Office. And um the mics are okay, but you have to actually like speak into it because Chair, you're still soft. Okay. Um Member Senensi. Alohayaka here at my home office. I'm here by myself, and there are no testifiers in Honor. Okay, good morning, everybody. Member U Hodgins will be joining us shortly. From the office of the mayor, we have Leslie Milner, who is um with us virtually. Department of Finance, Maria Zelinski, Deputy Director, Department of Management, Lauren Aketake, Board of Ethics, Executive Director. You're first up in on the agenda. Department of Water, we have Kimo Landgraf, Deputy Director. Um, Corporation Council, Christy Wigglesworth. I like your name, by the way. Um, Deputy Corporation Counsel, Committee Staff Lei Denine, Council Services Assistant Clerk, Peter Hanano, Legislative Attorney, James Kruger, Senior Legislative Analyst, Pauline Martin, Senior Committee Secretary, and Kirsten Zabo, legislative analyst. Um, please see the last page of the agenda for information on meeting connectivity. Thank you, members for attending today's BFID uh committee meeting. We have four items on the agenda today, which is B Fed 47 regarding the Board of Ethics, Bill 2 2026, amending section 2.56.080, Maui County code relating to setting the salaries by the executive director and establishing new pay skills. BFED 20, 2022, fiscal year 25, and fiscal year 26 carryover savings. This is being brought up so we can prepare prepare for the upcoming budget.
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