HCR117 HD1

WHEREAS, the August 2023 wildfires on the island of Maui destroyed the core of historic Front Street in Lahaina, Maui, and many surrounding neighborhoods, killing over a hundred people, destroying thousands of residential and commercial structures, and displacing thousands of residents; and

WHEREAS, the August 2023 wildfires also destroyed dozens of structures and displaced dozens of families in Upcountry Maui; and

WHEREAS, the cost to respond to and recover from this tragedy at the federal, state, and county levels is estimated to be in the billions of dollars over multiple years; and

WHEREAS, in addition to response and recovery costs, the State and County of Maui also stand to lose significant revenue from general excise taxes, transient accommodations taxes, and real property taxes because of a decrease in visitors to the island of Maui due to occupancy of hotel rooms by displaced families, loss of property use and value, and waivers to incentivize long-term rentals over short-term rentals; and

WHEREAS, the fiscal year 2024-2025 budget currently being deliberated on by this body is likely to include hundreds of millions of dollars for the County of Maui for various aspects of recovery; and

WHEREAS, fiscal restraint will be needed in other areas of state operations to offset recovery funds for the County of Maui; and

WHEREAS, Maui County Mayor Richard T. Bissen, Jr., presented his proposed budget for fiscal year 2024-2025 to the Maui County Council on March 25, 2024; and

WHEREAS, according to the Mayor's press release, the proposed budget reflects an increase of $429,200,000 over the prior fiscal year, a 33.9 percent increase, while at the same time expecting $150,000,000 from the State; and

WHEREAS, the proposed budget also includes funding needed to support new departments and agencies, specifically a new Department of ‘Oiwi Resources, a new water authority to be known as the East Maui Regional Community Board, and a new Department of Housing arising out of the splitting of the existing Department of Housing and Human Concerns, which were mandated by amendments made to the Maui County Charter in 2022; and

WHEREAS, the proposed budget also includes funding needed to implement recommendations from wildfire after-action reports; and

WHEREAS, the County of Maui additionally faces unknown costs to defend itself in numerous lawsuits relating to the wildfires; and

WHEREAS, other than these necessary spending increases and those needed to continue recovery efforts, the fiscal year 2024-2025 budget for the County of Maui should be conservative and not increase personnel and operating expenses that will continue to be supported in future years; and

WHEREAS, the County of Maui has experienced staffing shortages for years and has struggled to improve high vacancy rates, suggesting that it may be premature to increase the County's budget for additional positions when current vacancies cannot be filled; and

WHEREAS, the Maui County Council begins its deliberations on the fiscal year 2024-2025 budget on April 1, 2024, and has scheduled a second and final reading for the budget ordinances for June 5, 2024; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the Senate concurring, that the County of Maui is urged to adopt a financially prudent budget for fiscal year 2024-2025; and

BE IT FURTHER RESOLVED that the Maui County Council is urged to adopt, and Mayor Bissen is urged to sign, a fiscal year 2025-2026 budget that maintains current operational levels, such as staffing, except for increases mandated by the Maui County Charter or those critical to wildfire response; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Mayor of the County of Maui, and members of the Maui County Council.

Report Title:

Maui County; Budget; Fiscal Year 2025-2026

HOUSE OF REPRESENTATIVES	H.C.R. NO.	117
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII