Kalbert Young, University of Hawaiʻi vice president for budget and finance and chief financial officer, shares his analysis of the 2021 legislative session to date.
The 2021 legislative session has moved quickly this year, with a calendar of 55 days vs. 60 days in a typical year, online protocols for hearings and limited in-person access due to COVID-19 restrictions. Still, there are a number of measures of interest to the University of Hawaiʻi that I would like to highlight thus far, as the Legislature nears the final weeks of this year’s session.
This update encompasses the completion of the majority of the legislative calendar for hearings. With a shorter legislative session, the deadlines were also shorter than in past years. As such, I was not able to provide readers with more frequent updates at each legislative milestone as done previously.
In regards to the budget, the budget bill (House Bill 200) crossed over from the House to the Senate on March 24. The Senate Committee on Ways and Means then scheduled its hearing on the budget bill for March 29. The Senate then decked, or finalized, their version of the budget bill on April 7, and the bill returned to the House on April 9, which then begins the conference process.
The special complexities in the budget this year can best be illustrated in the following three tables to provide the macro-level and line item detail comparing the different versions of the university’s operating budget. Seeing the progression of the proposed budget emphasizes the dramatic changes in underlying assumptions regarding the state’s economy and developing federal support that have changed since the Board of Regents approved this budget request in November 2020 and the governor submitted his request in December 2020.
For all machinations of the budget, the university is likely to get less general funding over each of the next two years of the biennium. Many of the reductions are hopefully made up with federal stimulus funding—for the most part.
The following table compares the total general fund budgets for each of the campuses in the board, governor, House and Senate versions of the budget. A peculiar oddity to note in the House and Senate versions of the budget—the House moved the appropriation for the (JABSOM) into 惭ā苍辞补’s budget, while the Senate kept JABSOM separate, but instead separated the into a new budget program ID from 东精影业 惭ā苍辞补.
| Campus | ||||||||
|---|---|---|---|---|---|---|---|---|
| Board | Governor | House | Senate | |||||
| FY22 | FY23 | FY22 | FY23 | FY22 | FY23 | FY22 | FY23 | |
| 东精影业 惭ā苍辞补 | $3,600,000 | $3,600,000 | ($32,000,000) | ($32,000,000) | ($12,708,831) | ($12,708,831) | ($23,867,825) | ($19,801,072) |
| JABSOM | ($3,000,000) | ($3,000,000) | ($21,206,565) | ($21,206,565) | ($3,000,000) | ($3,000,000) | ||
| 东精影业 Cancer Center (new) | $6,098,055 | $6,098,055 | ||||||
| 东精影业 Hilo | $400,000 | $400,000 | ($5,300,000) | ($5,300,000) | ($5,044,105) | ($5,150,000) | ($4,750,000) | ($4,750,000) |
| 东精影业 West Oʻahu | ($2,700,000) | ($2,700,000) | ($2,700,000) | ($2,700,000) | ($2,535,606) | ($2,535,606) | ||
| 东精影业 Community Colleges | $700,000 | $700,000 | ($22,300,000) | ($22,300,000) | ($23,000,000) | ($23,000,000) | $23,000,000 | $23,000,000 |
| 东精影业 Systemwide Support | ($8,478,080) | ($8,478,080) | ($7,992,704) | ($7,992,704) | ($8,147,338) | ($8,147,338) | ||
| Total | $4,700,000 | $4,700,000 | ($73,778,080) | ($73,778,080) | ($72,652,205) | ($72,758,100) | ($13,202,714) | ($9,135,961) |
The largest component of these different versions is a 15% across-the-board reduction to each campus’ general fund budget in the governor’s budget submission. The House retained those reductions, but offset a significant portion of them with the use of American Rescue Plan Act (ARPA) funds from the federal government. This third COVID-19 response package included approximately $1.6 billion to the Hawaiʻi state government to mitigate the impact of the economic downturn. The Senate kept those reductions with the exception of 东精影业 Community Colleges, and provided ARPA funds primarily in the first fiscal year of the biennium instead of both years.
| Campus | Description | BOR FY22 | BOR FY23 | Gov FY22 | Gov FY23 | HDI FY22 | HDI FY23 | SDI FY22 | SDI FY23 |
|---|---|---|---|---|---|---|---|---|---|
| 东精影业 惭ā苍辞补 | 15% General Fund Reduction | ($35,600,000) | ($35,600,000) | ($35,600,000) | ($35,600,000) | ($35,600,000) | ($35,600,000) | ||
| JABSOM | 15% General Fund Reduction | ($3,000,000) | ($3,000,000) | ($3,000,000) | ($3,000,000) | ($3,000,000) | ($3,000,000) | ||
| 东精影业 Hilo | 15% General Fund Reduction | ($5,700,000) | ($5,700,000) | ($5,700,000) | ($5,700,000) | ($5,700,000) | ($5,700,000) | ||
| 东精影业 West Oʻahu | 15% General Fund Reduction | ($2,700,000) | ($2,700,000) | ($2,700,000) | ($2,700,000) | ($2,700,000) | ($2,700,000) | ||
| 东精影业 Community Colleges | 15% General Fund Reduction | ($23,000,000) | ($23,000,000) | ($23,000,000) | ($23,000,000) | ||||
| 东精影业 Systemwide Support | 15% General Fund Reduction | ($8,478,080) | ($8,478,080) | ($8,478,080) | ($8,478,080) | ($8,478,080) | ($8,478,080) | ||
| 东精影业 惭ā苍辞补 | Additional ARPA Funds | $28,480,000 | $28,480,000 | $15,600,000 | $3,533,247 | ||||
| JABSOM | Additional ARPA Funds | $2,400,000 | $2,400,000 | $2,400,000 | |||||
| 东精影业 Hilo | Additional ARPA Funds | $4,560,000 | $4,560,000 | $4,560,000 | |||||
| 东精影业 West Oʻahu | Additional ARPA Funds | $2,160,000 | $2,160,000 | $2,160,000 | |||||
| 东精影业 Community Colleges | Additional ARPA Funds | $18,400,000 | $18,400,000 | ||||||
| 东精影业 Systemwide Support | Additional ARPA Funds | $6,782,464 | $6,782,464 | $6,782,464 | |||||
| 东精影业 惭ā苍辞补 | 东精影业ERO Support (ARPA) | $1,200,000 | |||||||
| 东精影业 Community Colleges | Hawaiʻi Promise (ARPA) | $1,300,000 | $1,300,000 | ||||||
| Aquarium | Aquarium Support (ARPA) | $1,000,000 | |||||||
| Total | Total General Fund Reduction | ($78,478,080) | ($78,478,080) | ($78,478,080) | ($78,478,080) | ($55,478,080) | ($55,478,080) | ||
| Total | Total ARPA Addition | $66,282,464 | $64,082,464 | $31,502,464 | $3,533,247 |
Finally, specific line items in the operating budget, including funding for athletics programs and the Hawaiʻi Promise Program, are included in the following table:
| Campus | Description | BOR FY22 | BOR FY23 | Gov FY22 | Gov FY23 | HDI FY22 | HDI FY23 | SDI FY22 | SDI FY23 |
|---|---|---|---|---|---|---|---|---|---|
| 东精影业 惭ā苍辞补 | 东精影业 惭ā苍辞补 Athletics | $3,600,000 | $3,600,000 | $3,600,000 | $3,600,000 | $2,600,000 | $2,600,000 | ||
| 东精影业 Hilo | 东精影业 Hilo Athletics | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 | ||
| 东精影业 Community Colleges | Hawaiʻi Promise Program | $700,000 | $700,000 | $700,000 | $700,000 | $1,300,000 | $1,300,000 | ||
| 东精影业 惭ā苍辞补 | Add (3) Positions and Funds for HIMB | $197,228 | $197,228 | ||||||
| 东精影业 惭ā苍辞补 | 东精影业 Cancer Center | $4,972,752 | $4,972,752 | ||||||
| 东精影业 Hilo | Transfer-in PISCES from DBEDT | $550,000 | $550,000 | $550,000 | $550,000 | ||||
| 东精影业 Hilo | 东精影业 Hilo Athletics | $105,895 | |||||||
| 东精影业 惭ā苍辞补 | Additional Funds for operations | $12,880,000 | $16,946,753 | ||||||
| 东精影业 Cancer Center (new) | Additional Funds for operations | $3,000,000 | $3,000,000 | ||||||
| 东精影业 惭ā苍辞补 | Reduce (2) Positions and Funds | ($164,394) | ($164,394) | ||||||
| 东精影业 West Oʻahu | Add (2) Positions and Funds | $164,394 | $164,394 | ||||||
| 东精影业 Community Colleges | Reduce Funds for Other Current Expenses | ($160,000) | ($220,000) | ||||||
| 东精影业 Community Colleges | Add (3) Positions and Funds | $160,000 | $220,000 | ||||||
| 东精影业 Community Colleges | Workforce Preparation and Non-credit | $7,500,000 | $7,500,000 | ||||||
| 东精影业 Community Colleges | Post-Graduation Advising and Summer Exploration | $1,000,000 | $1,000,000 | ||||||
| 东精影业 Community Colleges | Student Work-based Learning and Internship | $2,000,000 | $2,000,000 | ||||||
| 东精影业 Community Colleges | Campus IT Upgrades | $4,200,000 | $4,200,000 | ||||||
| 东精影业 Community Colleges | Modernization of Equipment for Workforce Programs | $1,000,000 | $1,000,000 | ||||||
| 东精影业 Community Colleges | Routine HVAC Maintenance | $6,000,000 | $6,000,000 | ||||||
| 东精影业 Systemwide Support | Reduce Funds | ($84,440) | ($84,440) | ||||||
| 东精影业 Systemwide Support | Reduce (4) positions and funds | ($70,194) | ($70,194) | ||||||
| Total | $4,700,000 | $4,700,000 | $4,700,000 | $4,700,000 | $5,825,875 | $5,719,980 | $42,275,366 | $46,342,119 |
On the capital improvement project (CIP) budget, 东精影业’s board-approved request was for $288 million for FY22 and $232.5 million for FY23 to address capital renewal, progress on deferred maintenance, and funding for projects to modernize each of the campuses within 东精影业. The House draft of the CIP budget includes $170.7 million for FY22 and $204.5 million for FY23 in general obligation (GO) bond funding for various projects. The Senate draft includes $118.3 million for FY22 and $131.8 million for FY23 in GO bond funds for 东精影业. Unfortunately, this appropriation is insufficient for 东精影业 to even maintain status quo on the deferred maintenance, let alone improve our aging infrastructure.
Currently, 东精影业 has an estimated $750+ million in its deferred maintenance backlog, which requires a minimum annual funding of $80 million per year just to prevent it from increasing.
The following table shows the CIP budget comparison between the board, governor, House and Senate drafts:
| Campus | Project Title | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Board | Governor | House | Senate | ||||||
| FY22 | FY23 | FY22 | FY23 | FY22 | FY23 | FY22 | FY23 | ||
| 东精影业 System | Renew, Improve and Modernize | $110,500,000 | $110,500,000 | $48,500,000 | $80,000,000 | $48,500,000 | $110,500,000 | $4,300,000 | $65,000,000 |
| 东精影业 Community Colleges | Capital Renewal and Deferred Maintenance | $25,000,000 | $25,000,000 | $15,000,000 | $25,000,000 | $15,000,000 | $35,000,000 | $25,000,000 | $25,000,000 |
| 东精影业 Community Colleges | Minor CIP | $25,000,000 | $25,000,000 | $15,000,000 | $21,000,000 | $15,000,000 | $35,000,000 | $15,000,000 | $21,000,000 |
| 东精影业 Hilo | Renew, Improve and Modernize | $24,000,000 | $13,500,000 | $10,000,000 | $15,000,000 | $10,000,000 | $15,000,000 | $11,500,000 | $8,300,000 |
| 东精影业 惭ā苍辞补 | 惭ā苍辞补 Mini Master Plan Phase 2 | $60,000,000 | $60,000,000 | $60,000,000 | |||||
| 东精影业 Community Colleges | Honolulu CC Technology Renovations | $15,000,000 | $15,000,000 | $15,000,000 | $14,000,000 | ||||
| Aquaria | Waikīkī Aquarium | $1,500,000 | $9,000,000 | $1,500,000 | $9,000,000 | $1,500,000 | $9,000,000 | $1,500,000 | $9,000,000 |
| 东精影业 Community Colleges | ADA Upgrades | $14,000,000 | $14,000,000 | ||||||
| 东精影业 West Oʻahu | Renew, Improve and Modernize | $3,000,000 | $3,000,000 | $3,500,000 | $3,500,000 | ||||
| 东精影业 Community Colleges | Windward CC Agripharmatech Bioprocessing Facility | $3,000,000 | $3,000,000 | ||||||
| 东精影业 惭ā苍辞补 | Central Admin Facility with Parking | $4,000,000 | |||||||
| 东精影业 West Oʻahu | Planning Projects | $500,000 | $500,000 | ||||||
| 东精影业 Community Colleges | Kapiʻolani CC–Kokiʻo | $2,500,000 | $30,000,000 | ||||||
| 东精影业 Community Colleges | Maui College Vocational Tech | $2,000,000 | |||||||
| 东精影业 惭ā苍辞补 | CTAHR–Waialeʻe Research Station | $1,600,000 | |||||||
| 东精影业 Hilo | Mauna Kea Telescope Removal (Hoku Keʻa) | $1,100,000 | |||||||
| 东精影业 Community Colleges | Resource and Education Center | $42,500,000 | |||||||
| 东精影业 System | CTAHR-Waimānalo Research Center | $1,001,000 | |||||||
| Total | $288,000,000 | $232,500,000 | $165,000,000 | $150,000,000 | $170,700,000 | $204,500,000 | $118,301,000 | $131,800,000 | |
A special aspect this year is the additional funding assistance for higher education from three COVID-19 response bills from the federal government:
- CARES (Coronavirus Aid, Relief, and Economic Security Act): Signed into law on March 27, 2020.
- CRRSAA (Coronavirus Response and Relief Supplemental Appropriations Act): Signed into law on December 27, 2020.
- ARPA (American Rescue Plan Act): Signed into law on March 11, 2021.
These bills have provided funds directly to 东精影业 for student grants as well as for institutional uses via the Higher Education Emergency Relief Fund (HEERF). These funds were provided in all three response bills and total more than $200 million in support for 东精影业 students and operations. Additional details may be found on 东精影业?s Federal Emergency Relief Funds website.
In addition, ARPA provides money to the state through the Coronavirus State Fiscal Recovery Fund (CSFRF), which gives $1.6 billion to Hawaiʻi. These CSFRF funds are also being appropriated by the Legislature in the budget bill.
| Campus | CARES | CRRSAA | ARPA | Total |
|---|---|---|---|---|
| 东精影业 惭ā苍辞补 | $20,576,671 | $31,009,066 | $53,008,726 | $104,594,463 |
| 东精影业 Hilo | $5,686,028 | $8,984,880 | $15,637,832 | $30,308,740 |
| 东精影业 West Oʻahu | $2,633,257 | $5,098,044 | $9,005,645 | $16,736,946 |
| Hawaiʻi CC | $2,164,327 | $4,537,093 | $8,008,451 | $14,709,871 |
| Honolulu CC | $2,048,215 | $4,421,511 | $7,563,787 | $14,033,513 |
| Kapiʻolani CC | $3,723,344 | $7,757,117 | $13,414,485 | $24,894,946 |
| Kauaʻi CC | $1,008,208 | $2,242,104 | $3,874,089 | $7,124,401 |
| Leeward CC | $3,843,313 | $8,364,608 | $14,519,261 | $26,727,182 |
| 东精影业 Maui College | $2,229,317 | $4,703,035 | $8,297,678 | $15,230,030 |
| Windward CC | $1,017,851 | $2,466,094 | $4,298,126 | $7,782,071 |
| Total | $44,930,531 | $79,583,552 | $137,628,079 | $262,142,162 |
东精影业 legislative package
东精影业 submitted a number of bills for consideration this session. Two of those measures would help diversify the state’s economy and advance 东精影业’s ability to encourage technology transfer and commercialization of university intellectual properties. These could help to mitigate our state’s reliance on the tourism industry by spurring increased entrepreneurship in other sectors. The intent of the measures was to remove “sunset provisions” that limit the duration of 东精影业’s express statutory authority for its faculty and staff to engage in various programs and activities to support the innovation and commercialization of 东精影业-based technologies.
Another measure which 东精影业 is closely monitoring will permanently reinstate the president as the chief procurement officer for contracts for construction and construction-related professional services. This will allow 东精影业 to continue to efficiently conduct its construction procurements and deliver high-quality construction projects on-time and within budget.
Next steps
There is a little over two weeks left before the Legislature concludes and a little over a week of opportunity for conference committee deliberations. Your 东精影业 administration, alumni association members, members of the faculty and staff, friends of the university, and other affinity groups have been actively working and advocating on the measures highlighted above.
The next major deadline will be the final decking of bills on April 23. By this time, all bills must have concluded deliberation in conference committees of both the House and Senate. The Hawaiʻi State Legislature is scheduled to adjourn on April 29, 2021.