Budget, Finance, and Economic Development Committee Meeting on FY27 Budget - April 27, 2026

This was a recess meeting of the Budget, Finance, and Economic Development Committee to continue discussion on BFED-1, approving the fiscal year 2027 budget for the County of Maui. Oral testimony had closed on April 24, but written testimony continued to be accepted. The committee addressed corrections to the budget bill, discussed general budget provisions, reconsidered Bill 76 on water system development fees, and passed the budget package for first reading.

Corrections and Procedural Motions

• Fringe Benefits: Staff identified fringe benefit adjustments for police and public works positions from the prior year. A motion to accept the fringe cuts corresponding to council-retained cuts of fiscal year 2026 passed unanimously (9 ayes).
• Grant Conditions: Two grants under the Office of Recovery Program were conditioned: (1) J. Walter Cameron Center West Maui funds must be used for planning and pre-development; (2) Na 'Ike O Maui Inc. funds must be used for cultural education, monitoring, and support for West Maui rebuilding efforts, including the Royal Complex Master Plan. Motion adopted 9-0.
• Hawaiian Cultural Restoration Revolving Fund: The fund name in Appendix A Part 2 was renamed to match Bill 63 CD1. Motion passed 9-0.
• Lanai Farmer Market Exemption: The fee exemption language was moved from an asterisk under the table on page 28 to page 26, where the table is referenced, for clarity. Motion passed 8-0-1 (Member Johnson recused).
• Conforming Amendments: Staff was authorized to make conforming amendments to Bills 55-60 and any other affected bills. Motion passed 9-0.

Public Comments & Testimony

• No oral testimony was presented at this meeting. Written testimony continues to be accepted.

Discussion Items

• General Budget Provisions: The committee amended Section 19, subsection H, restoring the fiscal year 2026 language requiring the Managing Director to include certain information on each CIP in the quarterly CIP report. The budget director noted the change was inadvertent. Motion passed 8-0-1 (Member Paulton excused). Discussion was deferred to first reading for potential additional language on more timely reporting.
• Bill 76 – Water System Development Fees: The committee reconsidered the previous referral of Bill 76 to the Y committee due to time constraints (the bill would not return before the start of FY27). It was moved to pass the bill on first reading with non-substantive revisions. A 7B discussion (Rule 7B) will occur before second reading. Motion passed 9-0.
• Final Budget Package: The chair entertained a motion to recommend passage on first reading of Bills 55 (budget), 56 (capital program), 57 (bond authorization), 58 (lapse bond), 59 (wastewater projects loan), 60 (water supply projects loan), and Resolution 26-63 (fuel tax rates), incorporating non-substantive revisions. Motion passed 9-0 after corporate counsel confirmed recused members could vote on the overall package.
• Real Property Tax Rates: At the end of the meeting, Member Paulton expressed interest in adjusting the commercialized residential tax rate (Tier 1 at $225, Tier 2 at $350) to meet Mr. Crowley’s request. The budget director noted that excess from RPT changes was $108,000 for the open space fund. Member Paulton suggested offsetting the remaining $218,086.15 from the $500,000 allocation to Camp Maluhia. The committee agreed to finalize this at first reading.

Key Outcomes

• All corrections and procedural motions passed unanimously or with appropriate recusals.
• Bill 76 was reconsidered and passed on first reading.
• The budget package (Bills 55-60) and Resolution 26-63 were passed on first reading.
• A preliminary agreement was reached to potentially adjust commercialized residential tax rates at first reading, using $108,000 from open space funds and $110,086.15 from the Camp Maluhia allocation as an offset.
• Member Paulton was recognized for making 88 motions, with 83 passing.
• The committee concluded its business and canceled the previously scheduled meeting for April 28. The next steps include first reading on May 15, 2026, where remaining amendments (including tax rates) will be considered.