OFFICE OF THE GOVERNOR -- NEWS RELEASE -- GOV. GREEN ANNOUNCES LINE-ITEM VETOES, REDUCTIONS FOR STATE BUDGET

Press Release

Governor Josh Green, M.D., notified the Legislature of his intent to line-item veto and line-item reduce House Bill 300, the General Appropriations Bill of 2023, to balance the financial plan. This bill appropriates funds for Fiscal Biennium 2023-2025, to fund operations and capital improvement projects of Executive Branch agencies and programs.

The change in the Council on Revenues general fund projections for Fiscal Year 2022-2023 went from +2% in March to --1% in May, which prompted the need to rebalance the state's financial plan through line-item reductions to the budget. To balance the financial plan and meet the reserve policy for the state, Governor Green needed to reduce approximately $1 billion from the budget bill over the Fiscal Biennium 2023-2025.

"Our state laws and policies require me to balance the budget and ensure that the state has adequate reserves to protect against budget shortfalls and provide financial stability and flexibility during volatile times and natural disasters,"

"A sound budget and appropriate reserve levels are also needed to help maintain strong bond ratings that can positively affect borrowing costs associated with our capital improvement projects."

Governor Green's actions will protect essential services, core programs, and will continue to make significant investments in priority areas for the state.

"I considered the needs of the community to make sure we are still making large strides in moving the state forward,"

"Even with this year's proposed reductions, this budget makes historic investments in housing, homelessness, environment, healthcare, and education."

Many of the items that were reduced require additional planning, public input, and clarity on the use of funds. Consideration was also given to the departments' capacity to spend down the funds efficiently within the appropriation timeline, and in many instances, smaller amounts of funding were provided so that the initial work of important projects and programs could begin.

The line-item reductions and vetoes in House Bill 300 are listed below. Please note attached spreadsheet.

Reducing $4 million in FY24 from Enterprise Technology Services for Relocation of Data Center; leaving $1 million

Reducing $1.05 million in FY24 from Department of Accounting and General Services Public Works

Division for Proof of concept and master planning

Reducing $500k in FY24 for Enterprise Technology Services relocation of Mapunapuna Baseyard

Reducing $50M in FY24 for the First Responder Tech Park

Reducing $1.5M in FY24 for East Kapolei Infrastructure; leaving $500k

Reducing $18.5M in FY24 for Kakaʻako Street Upgrades

Reducing $42M in FY24 for Kalaeloa electric upgrades; leaving $5M

Reducing $61M in FY24 for Iwilei-Kapālama infrastructure; leaving $25M

Reducing $88.8M in FY24 for irrigation infrastructure; leaving $5M

Reducing $5 million in FY24 from Department of Agriculture Mitigation and Population Control of
Feral Animals (Department of Land and Natural Resources will undertake this work)
Reducing $2M in FY24 for Department of Business, Economic Development, and Tourism Hawaiʻi Center for Advanced Transportation Technologies for energy tech, microgrid, and other related programs; leaving $2M

Reducing $33M in FY25 for Broadband Federal Matching; leaving $33M in FY24 for state match

Reducing $500M in FY25 for the Emergency Budget Reserve Fund; leaving $500M in FY24 to meet reserve target

Reducing $50M in FY24 for Hawaiʻi Green Infrastructure Authority solar energy storage loan program; leaving $50M in FY24 to launch program

Reducing $12M in FY24 for the Department of Defense; plan, design, construction, and equipment for new headquarters

Reducing $120M in FY24 for Teacher Housing; leaving $50M in FY24 to launch program

Reducing $3M in FY24 for Department of Human Resources and Development Computer Equipment

Reducing $5M in FY24 for Department of Law Enforcement Training Center for New Building

Reducing $5M in FY24 for Department of Land and Natural Resources for forestry resource management; leaving $20M in FY24

Reducing $25M in FY24 for State Parks renovations and improvements; leaving $25M in FY24

Reducing $100k in FY24 for Kawehewehe Waikīkī Boardwalk

Reducing $60.2M in FY24 for Department of Land Division of Boating and Ocean Recreation

Source