The Budget, Finance, Economic Development Committee met on March 10, 2026, from 9:08 AM to 12:04 PM, with a recess from 10:29 AM to 10:50 AM. The agenda included four items: (1) an update from the Employees' Retirement System (ERS) of the State of Hawaii, (2) Bill 102 and Resolution 25-53 to amend the FY26 budget and authorize acquisition of 0.41 acres at 104A Lower Waiehu Beach Road (Kayehu Bay), (3) administration and management of grants, and (4) the proposed FY27 budget. Public testimony was taken only on the second item. The committee deferred items 2, 3, and 4 to the next meeting on March 17, 2026.
ERS Update (BFED-20(2)): Calbert Young, executive director of the ERS, presented an update. Key statistics: total membership ~162,000; active employees 66,826 (Maui County: 2,720); retirees/beneficiaries ~57,000 (Maui County address: 5,100+). Total liability ~$40 billion, with $25 billion in assets (63.5% funded). Unfunded liability ~$14.4 billion. Funding period ~21 years. Police and fire have a separate 69.8% funded ratio but a longer funding period (24 years). Employer contribution rates: general employees 24% of salary; police/fire 41%. County of Maui pays approximately $65–$67 million annually. Pension spiking: in FY2025, 60 Maui County retirees triggered spiking, costing the county $6.5 million. Young discussed legislative bills: SB 3096 (increase employer contribution for police/fire by 3% to 44%), HB 2358 (ERS membership for elective officers), SB 99 (return-to-work for retirees). Three other return-to-work bills did not survive the March 6 deadline. Young noted that unlike the EUTF, there is no mechanism for employers to make extra contributions to ERS attributable to their own liability. Council members asked about investment returns (7% assumed, portfolio ~$26 billion, $1.8 billion return last year), underperformance, risk profile, and the state's past raid of ERS funds. Young clarified the state did not take money, but allowed a contribution holiday, which worsened the funded status.
Land Acquisition (BFED-46 & Resolution 25-53): The administration proposed adding $500,000 to the FY26 budget to acquire the parcel at 104A Lower Waiehu Beach Road (TMK 2-3-3-001-034) from the LDS Church, and deleting a prior $1.3 million appropriation for 131 Shaw Street. The property is adjacent to county-owned conservation land (63 acres) managed by Kayehu Bay stewardship. Administration stated the purchase would prevent development and the property would be managed as open space. Public testimony raised serious title disputes: family members claim the land was never legally deeded to the LDS Church, only permitted for worship. Dane Mayo presented documents showing the chain of title traces back to a 1938 indenture, not a deed, and that his family has a superior claim. Lala Johnson noted the preliminary title report mischaracterizes the instrument. The managing director indicated that if the county acquired land later determined to belong to another, the county would hand it over. Council members expressed discomfort with the unclear title, and the administration agreed to meet with the family. The committee voted to defer the item to allow the family to organize documents and the administration to meet with them.
Grants (BFED-20(12)) and Budget (BFED-1): No public testimony was received. The committee deferred both items to the March 17, 2026 meeting. Member Johnson noted he will present survey findings on grantee experiences. The updated budget calendar and list of departments for questioning were provided in Granicus.
Good morning, everybody. Welcome to the budget finance economic development committee. It is not, it is March tenth, it's nine oh eight. And um this meeting will be um conducted in accordance with the sunshine law. Um, as a reminder, when your name is called, if you're not in the council chambers, please identify by name who, if anyone is in a room, vehicle, or workspace with you today. So he'll be a little bit late. Good morning. Uh, that's a Hebrew word to be safe and sound, and the foundation for the word Shalom, which is peace. I'm home alone in my work space, uh nursing. Oh, surgery went well. Yes. Yeah, but she doesn't take well to those things. Um, member Member Palton, good morning. My Molukainuya. I'm at my private resident. Nursing my baby over here. Uh back to health. She's okay. She's just under the weather. So my minor child that will be unnamed. And there are currently no testifiers at the Molokai District Office. Thank you. Member Senansi. Good morning. Hello, good morning. And Shalom here at my private residence as well. I'm here by myself and I'll testifiers chair. Okay, good morning. Thank you. Member U Hodgins. Good morning, everyone. Shalom. Shalom. Here too with us today is also budget director, deputy director of finance, land acquisition officer, Guy Hiranaka as virtual, deputy director of environmental management, environmental protection, sustainability manager, chief of staff, managing director, not confirmed, office of recovery administrator, not confirmed, director of agriculture, not confirmed, director of deputy director of agriculture, not confirmed. Director of Deputy Deputy of Agriculture did confirm. Okay, thank you, Koa. Um Director of OEV resources, not confirmed, deputy corporation corporation council, Wickles Worth. Thank you very much for being here. Good morning. As well as our BFED committee staff. I've also invited Calbert Young, executive director, executive director, employees retirement system, state of Hawaii. And members, if those if there are no objections, I'd like to designate Mr. Young as a resource person under Rule 18A of the rules of the council based on the role with ERS. Thank you. No objections. Thank you. He used to be our finance director at one point. Smart guy. Welcome back, Calbert. Please see the last page of the agenda for information on meeting connectivity.