HONOLULU (AP) — Hawaii Governor Josh Green announced on Friday that a lower revenue forecast has compelled him to utilize line-item veto power to reduce over $500 million in spending from the general budget for the next two years.
The legislature passed the budget in May during the final legislative session. However, later that month, the Council on Revenues revised its projection for the state’s tax revenue.
Under Hawaii law, the governor and legislature must craft their budgets based on the council’s estimates, which means Green had to identify areas for cuts.
For the fiscal year ending in June 2024, Green eliminated $71 million in funding for a first responders campus and high-technology park proposed for Mililani. However, the Office of Information Technology and the Department of Accounting and General Services will still have $1 million to plan for the relocation of a data center as part of the project.
Around $12 million of the planned spending for the campus was allocated for the Hawaii Emergency Management Agency, which is currently housed in an aging bunker within Diamond Head crater.
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Green expressed agreement that the headquarters of the agency needs improvement and that the state should enhance its cybersecurity. However, he raised concerns that the total cost for the campus could exceed $500 million, and the Honolulu police have expressed their disinterest in using the site. Green emphasized the need for more open debate regarding the project.
“For something this significant, everyone has to be on the same page. And I don’t want it to be rushed,” he said.
Green also reduced the funding for a solar energy storage loan program from $100 million to $50 million, stating that the state wouldn’t be able to spend the full amount in the upcoming fiscal year.
Similarly, he cut spending on teacher housing from $170 million to $50 million, citing the state’s inability to allocate the full amount.
For the fiscal year ending in June 2025, Green reduced the appropriation for the rainy day fund by $500 million, leaving the fund with $1.5 billion.
Green emphasized that the state will continue to invest in housing, homelessness, healthcare and preschool.
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