Aloha students, faculty and staff,
The Hawaiʻi State Legislature is now in its final month of the 2024 legislative session. Legislative measures are nearing their last phases of deliberation, and bills (those that are still alive) are set to return to their originating chamber soon as the ‘second crossover’ milestone approaches.
For the State budget, the Senate recently completed its version of the budget, and will be sending it back to the House where the conference committee process could begin as early as mid-April. The House had completed its version of the budget earlier in March, so the conference committee meetings will be the opportunity for both chambers to reconcile, compromise, or negotiate the final state budget. This update provides some updates on key funding requests of the University of Hawaiʻi in the Senate draft of the budget.
If you recall my update from March, the House draft of the operating budget reflected all of the University requests that were included in the Governor’s requested budget. Although still slightly off from what the Regents had requested for the University, the House had included all of the Governor’s requests, plus more. By this measure, the Senate version of the budget is not as good as the House version but I would still characterize it as decent.
The restoration of public funding to pre-COVID-19 pandemic levels is one of the top legislative priorities for 东精影业 this legislative session, along with expanding the Hawaiʻi Promise program to the three four-year universities and funding to address healthcare workforce shortages.
The Governor and the House both supported the Board of Regents request to permanently restore public funding to 东精影业 to the level that existed prior to the pandemic. The Senate draft does include the restoration of the funds as well, but only for the next Fiscal Year (FY2025). This is the same funding approach as last year—where the Legislature restored funding for only the current year, FY2024.
Restoring funding for services and programs that have previously existed for more than 5+ years from before the pandemic on a year-to-year basis is not fiscally rational and impedes the establishment of consistent operations and services. Getting the funding for another year is appreciated, but getting it restored makes the most sense. Prior to the pandemic in FY2020, the state general fund budget was roughly $8 billion, and is now projected to be about $10.3 billion for FY25, an increase of over 28%. In that same time period, tax collections and inflation have increased considerably. The University of Hawaiʻi and the Department of Education remain the only state agencies that have not had the funding that was cut during the pandemic restored.
Similarly, general fund support for athletics programs at 东精影业 惭ā苍辞补 and 东精影业 Hilo are included in the Senate draft of the budget but, again, only FY25. If the legislature passes a budget with the Senate approach to these items as non-recurring funding, it is not fatal, but 东精影业 will have to once again request general fund support from the Legislature next session in both of these areas.
The following table shows a synopsis of how 东精影业 has fared so far this session on the operating budget:
OPERATING TABLE
| Campus | Description | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| BOR Request | Governor Request | House | Senate | ||||||
| FTE | $$$ | FTE | $$$ | FTE | $$$ | FTE | $$$ | ||
| 东精影业 惭ā苍辞补 | General Fund Restoration – 东精影业 惭ā苍辞补 | $5,600,000 | $5,600,000 | $5,600,000 | $5,600,000 | ||||
| JABSOM | General Fund Restoration – JABSOM | $1,800,000 | $1,800,000 | $1,800,000 | $1,800,000 | ||||
| 东精影业 Hilo | General Fund Restoration – 东精影业 Hilo | $3,420,000 | $3,420,000 | $3,420,000 | $3,420,000 | ||||
| 东精影业 West Oʻahu | General Fund Restoration – 东精影业 West Oʻahu | $1,620,000 | $1,620,000 | $1,620,000 | $1,620,000 | ||||
| 东精影业 System | General Fund Restoration – 东精影业 System | $5,086,848 | $5,086,848 | $5,086,848 | $5,086,848 | ||||
| 东精影业 惭ā苍辞补 | Athletics Subsidy – 东精影业 惭ā苍辞补 | $3,200,000 | $3,200,000 | $3,200,000 | $3,200,000 | ||||
| 东精影业 Hilo | Athletics Subsidy – 东精影业 Hilo | $400,000 | $400,000 | $400,000 | $400,000 | ||||
| 东精影业 Community Colleges | Culinary Institute of the Pacific – Full Year Funding | $389,245 | |||||||
| 东精影业 Community Colleges | Value Added Product Center – Full Year Funding | $359,932 | |||||||
| 东精影业 惭ā苍辞补 | Expand Teacher Cohort on Neighbor Islands | 7.00 | $625,000 | ||||||
| 东精影业 惭ā苍辞补 | CTAHR Extension Agents | 5.00 | $506,555 | 5.00 | $506,555 | 5.00 | $506,555 | 5.00 | $506,555 |
| 东精影业 System | Increased Campus Safety | 4.00 | $1,000,000 | moved to TFSF | moved to TFSF | moved to TFSF | moved to TFSF | moved to TFSF | moved to TFSF |
| 东精影业 惭ā苍辞补 | Hawaiʻi Promise Expansion – 东精影业 惭ā苍辞补 | $12,506,711 | $12,506,711 | ||||||
| 东精影业 Hilo | Hawaiʻi Promise Expansion – 东精影业 Hilo | $1,773,579 | $1,773,579 | ||||||
| 东精影业 West Oʻahu | Hawaiʻi Promise Expansion – 东精影业 West Oʻahu | $4,026,116 | $4,026,116 | ||||||
| 东精影业 Community Colleges | Hawaiʻi Promise Continuation – 东精影业 Community Colleges | $3,700,000 | $3,700,000 | $3,700,000 | $3,700,000 | ||||
| 东精影业 Community Colleges | Community-based Planning for Redevelopment of Lahaina | 2.00 | $500,000 | ||||||
| 东精影业 惭ā苍辞补 | Nursing Enrollment and Access thru 东精影业 惭ā苍辞补-东精影业 West Oʻahu Nursing Collaboration | 6.50 | $1,068,821 | 6.50 | $1,068,821 | 6.50 | $1,068,821 | 6.50 | $537,546 |
| JABSOM | Neighbor Island Health Access and Pathway Extension | 4.00 | $925,000 | 4.00 | $925,000 | 4.00 | $925,000 | 4.00 | $925,000 |
| 东精影业 Hilo | MA Counseling Psychology | 3.00 | $210,000 | 3.00 | $210,000 | 3.00 | $210,000 | 3.00 | $210,000 |
| 东精影业 West Oʻahu | Pre-Nursing Support | 3.00 | $322,032 | 3.00 | $322,032 | 3.00 | $322,032 | ||
| 东精影业 West Oʻahu | Early Childhood Education Support | 2.00 | $180,910 | 2.00 | $180,910 | ||||
| 东精影业 Hilo | BS Educational Studies and Expand Indigenous Teaching | 2.00 | $285,000 | 2.00 | $285,000 | 4.0 | $142,500 | ||
| 东精影业 Community Colleges | 东精影业 Maui – Apprenticeship Training Expansion | $250,000 | |||||||
| 东精影业 Community Colleges | Leeward CC – Modernize Equipment | $925,000 | |||||||
| 东精影业 System | Systemwide Mental Health Services | 6.00 | $510,000 | 6.00 | $510,000 | 6.00 | $510,000 | 6.00 | $255,000 |
| 东精影业 惭ā苍辞补 | Community Event Support | 6.00 | $709,000 | ||||||
| 东精影业 West Oʻahu | ACM Facilities and Core Services Support | 4.00 | $252,648 | ||||||
| 东精影业 West Oʻahu | Campus Safety | 1.00 | $61,800 | ||||||
| 东精影业 Community Colleges | 东精影业 Maui – Water Quality Lab | 2.00 | $160,000 | ||||||
| 东精影业 惭ā苍辞补 | Stabilize 东精影业 惭ā苍辞补 Athletics Operating Budget | 43.00 | $3,136,642 | ||||||
| 东精影业 惭ā苍辞补 | Cooperative Extension Support | 5.00 | $581,555 | ||||||
| 东精影业 Community Colleges | Windward CC – Incarcerated Students Program | 3.00 | $250,528 | 3.00 | $250,528 | 3.00 | $250,528 | ||
| 东精影业 Community Colleges | Statewide Access Master Plan | $2,874,177 | |||||||
| TOTAL | 110.50 | $56,342,922 | 36.50 | $29,085,694 | 30.50 | $46,926,190 | 28.50 | $30,277,626 | |
*Items in red are non-recurring.
On the 东精影业 capital improvement projects (CIP) budget, the 东精影业 initial request was for $331.5 million for FY2026 to address capital renewal, progress on deferred maintenance and funding for projects to modernize each of the campuses within the 东精影业 System. The Governor included $66.5 million of the 东精影业 requested amount in his budget request. The House draft of the budget appropriated $223,450,000 while the Senate draft provided for $153,967,000 for capital projects.
While $153,967,000 is a significant amount, there are funding nuances where we would have to be mindful. The Governor, House and Senate all lapsed $101.2 million general funded CIP to 东精影业 for FY25. Forcing the lapse on CIP, is an approach to make available general funds for redeployment to other initiatives, such as those to address the Maui wildfire recovery. These 东精影业 projects and funding that are proposed to lapse included:
- $5,000,000 for Sewer Line Replacement/Upgrades at Coconut Island
- $16,200,000 for Renew, Improve, and Modernize (RIM) projects at 东精影业 Hilo
- $25,000,000 for Minor CIP at the Community Colleges
- $25,000,000 for Capital Renewal and Deferred Maintenance at the Community Colleges
- $30,000,000 for RIM projects Systemwide.
The Senate put some of these funds back as General Obligation Bond finance projects, which are listed on the table, but notably did not include $25 million for Minor CIP at the Community Colleges and only put $20 million for RIM projects, Systemwide. The total amount of RIM funding is $37.2 million, which is far short of the $80 million that 东精影业 needs annually to prevent the maintenance backlog at 东精影业 facilities from increasing.
Additionally, although $63.5 million was appropriated for Hale Noelani renovation, this amount does not appear adequate to reopen the student housing facility. If the funding for student housing facilities and/or Hale Noelani are at insufficient levels to address facility condition improvements, the University will need to explore alternative funding and capital construction approaches to address student housing needs.
The following table shows the current CIP breakdown:
CIP TABLE
| Campus | Description | BOR Request | Governor Request | House Draft | Senate Draft |
|---|---|---|---|---|---|
| System/东精影业 惭ā苍辞补 | System, RIM Projects | $110,000,000 | $20,000,000 | $125,000,000 | $20,000,000 |
| 东精影业 惭ā苍辞补 | RIM Projects for Student Housing | $40,000,000 | |||
| 东精影业 惭ā苍辞补 | Hale Noelani Renovation | $80,000,000 | $63,517,000 | ||
| 东精影业 惭ā苍辞补 | PV Rooftop, PV Canopies and Various Energy Efficiency Projects | $30,000,000 | |||
| 东精影业 惭ā苍辞补 | Waikīkī Aquarium Upgrades | $9,000,000 | $9,000,000 | $4,500,000 | $9,000,000 |
| 东精影业 惭ā苍辞补 | Coconut Island Sewer Line Upgrades | $3,000,000 | $3,000,000 | $6,000,000 | $5,000,000 |
| 东精影业 惭ā苍辞补 | Holmes Hall | $8,000,000 | $8,000,000 | $8,000,000 | |
| 东精影业 惭ā苍辞补 | Assessment and Feasibility of Hamilton Library | $6,500,000 | |||
| 东精影业 惭ā苍辞补 | Mini Master Plan, Phase 3 – Kuykendall Hall | $5,000,000 | $5,000,000 | $5,000,000 | |
| 东精影业 惭ā苍辞补 | Central Administration Facility with Parking | $8,000,000 | $8,000,000 | ||
| 东精影业 惭ā苍辞补 | Waikīkī Aquarium Seawall Repairs | $3,000,000 | $3,000,000 | ||
| JABSOM | JABSOM Roof Replacement | $6,500,000 | $6,250,000 | $6,250,000 | $6,250,000 |
| 东精影业 Hilo | RIM Projects | $7,300,000 | $7,300,000 | $16,200,000 | $16,200,000 |
| 东精影业 West Oʻahu | RIM Projects | $5,000,000 | $5,000,000 | $1,000,000 | |
| 东精影业 West Oʻahu | Road B Entry Plaza | $5,200,000 | |||
| 东精影业 West Oʻahu | PV Carport | $5,000,000 | $5,000,000 | ||
| 东精影业 Community Colleges | Major R&M | $10,000,000 | |||
| 东精影业 Community Colleges | Capital Renewal and Deferred Maintenance | $25,000,000 | $25,000,000 | ||
| 东精影业 Community Colleges | Pālamanui – Improvements and Repair of Buildings | $2,000,000 | |||
| 东精影业 Community Colleges | Pālamanui – Expansion of Nursing and Early Childhood Ed Labs | $500,000 | |||
| 东精影业 System | CTAHR – Poamoho Research Station | $2,000,000 | $2,500,000 | ||
| 东精影业 惭ā苍辞补 | Waikīkī Aquarium – Edge of the Reef Exhibit | $3,000,000 | |||
| 东精影业 Community Colleges | Value-Added Product Development Center, Molokaʻi | $2,500,000 | |||
| TOTAL | $331,500,000 | $66,550,000 | $223,450,000 | $153,967,000 |
*Items in red are General Funded.
What happens next?
Now comes the final weeks of the session when the Senate and the House negotiate in Conference Committee meetings on the differences in their versions of the State Budget (HB1800 HD1 SD1) and other measures that are still alive. The outcomes of these meetings, which primarily happen behind closed doors, will ultimately decide funding for state programs, departments and agencies, including the University of Hawaiʻi ten campus system.
It is important to remember that there are never enough funds to meet all the requests of every state department—but, this year, that is especially true as the legislature and state believes that the situation is more dire in order to adequately provide for the recovery response to the Maui wildfires.
There are two major deadlines approaching:
- Monday, April 22, is the final decking deadline for the State Budget.
- Friday, April 26, is the final decking for fiscal bills.
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 May 3, 2024.
I will send out my final legislative update for this 2024 legislative session after the university has been able to review and assess the budget passed by the legislature for its impact on 东精影业.
Mahalo for your time and attention,
Kalbert Young
东精影业 Vice President for Budget & Finance/Chief Financial Officer