Hawaii County’s budget will break a half-billion dollars for the first time, but what’s not in the preliminary spending plan released Thursday is almost as significant as what is.
Mayor Harry Kim’s $515.7 million draft budget is $24.9 million more than this year’s budget, a 5.1 percent increase. There are no tax increases in the preliminary plan, other than the fuel tax hike previously approved by the County Council.
Kim’s priorities, based on input from constituents, are homelessness, the transit system and parks maintenance. But even those weren’t spared in a budget that had no room for new programs.
In fact, most departments took reductions to what they presented as status quo spending.
“The budget we are sending is balanced, and we cut all the things we could cut,” Kim said.
Council Chairwoman Valerie Poindexter wasn’t pleased with the plan. She said she’s meeting with House leadership Monday to see how the state can help.
“I will be reviewing the budget that was submitted to us with a fine-tooth comb,” Poindexter said. “Are cuts being made in the appropriate areas? How many new hires and contracts were awarded during the last year? I have a call in to HR to get me some data.”
Most of the new spending is outside county control.
Employee salaries and fringe benefits, negotiated largely at the state level, will add $12.7 million. Contributions to the employee pension plan add $4.4 million. Other post-retirement benefits account for an additional $5.9 million. Salaries recently awarded to top officials by the Salary Commission account for about $1.5 million more.
Principle and interest on money previously borrowed will cost $49 million.
Purchase and maintenance of land for preservation, public access and open space, as set in the county charter, will take $6.3 million.
There is no funding in the budget for homeless projects in East and West Hawaii, planned Hele-On bus improvements or fireworks displays. Transfer stations will now be closed on holidays.
Large road projects such as Ane Keohokalole extension to Kaiminani Drive are postponed. The county goal is to repave each mile of road once every 30 years, but the current rate budgeted is once every 69 years.
Council contingency funds are eliminated, saving $675,000. An additional $255,000 is cut from tourism promotion and the usual $1.5 million for nonprofit grants is cut back to the legally required $1 million.
On the revenue side, an additional $12.4 million is expected to be picked up in property taxes because of increased valuations and construction activity. An extra $8.8 million is expected to come from fuel taxes, with about $3.5 million coming from this year’s rate increase.
Grants will bring in an additional $7.7 million, with $3.5 million coming from a federal Housing Choice Voucher Program grant.
After releasing the budget Thursday, Kim was still lobbying for a half-cent local surcharge to the general excise tax, which would bring at least $25 million annually to the budget. A measure to add the new tax remains stalled in the council.
“In order to balance the budget, many items were removed from the budget,” Kim said in his budget message. “The budget is balanced based on estimated revenues, but that does not mean it is a realistic budget. The budget should contain what is needed to help the people of our county and provide necessary services.”
Poindexter didn’t like seeing the GET surcharge as a bargaining chip.
“I am very concerned about the administration asking us to raise the general excise tax immediately after asking us to approve raising property taxes and the gas taxes — then to see such exorbitant raises get awarded is like rubbing salt into a wound,” Poindexter said. “Further tax increases are going to be a real challenge. People in my district are very upset.”
Finance Committee Chairwoman Maile David had a similar reaction.
“Services and funding cuts are drastic,” David said. “However, I look forward to working together with my colleagues in finding solutions to our budget situation without imposing further tax burdens on our citizens.”
The preliminary proposed budget now goes to the County Council, which will conduct departmental reviews April 17-19.
The mayor’s final proposed budget will be released by May 5. Once amended and passed by the council, it goes into effect July 1.
Email Nancy Cook Lauer at ncook-lauer@westhawaiitoday.com.
Did Harry Kim cut the fat? Don’t believe a word he says until the following is mentioned: Rescind or postpone the 1.5 million raises awarded to appointed staff. Cut Andy Levin immediately and save that money for next year. Cut executive assistants, you already have useless Managing directors on both sides of the Island. Mandatory furloughs for all appointed and at-will employees and freeze all vacancies for non-civil service positions. Get rid of all deputy or assistant directors for Finance, Corp Counsel, Parks, Public Works, DEM and Human Resources. Since you run Civil Defense, get rid of the Civil Defense director. Have all appointed once or twice retired go back out on retirement and volunteer their services and restore trust not their pocketbooks. Do something Harry, its not always about spending and raising taxes!
Rape, rob and pillage hard working, barely making it taxpayers as Harry and his fat cats laugh at the misery and mayhem they have caused. Who voted for this pile of demo rat feces? Foolish demo rats got what they voted for, another foolish jackass.
Steve ,you are an idiot.
geeeze steve….nobody is feces…..come on….be civil.
What is the point of being civil with an idiot like Steve?
How does one be civil when met with one who is uncivil?
This lax attitude towards uncivil behavior is why we have Trump in the Oval Office and guys like Steve breathing.
You are wasting my oxygen! Democrats are why this place is such a mess. We might have been better off with the monarchy.
You don’t deserve oxygen!
You are right, I don’t deserve it, I earned it.
Yup. For doing nothing you have earned everything.
FU, I’d like to have breakfast with you at cafe 100.
FU 2
I don’t eat breakfast with loud mouthed inept lazy complainers who just want everything given to them.
You.
I’ll pay. a$$hole.
Save your “deserved” food stamp money.
$hithead
I at least try to be civil.
Fuc face!
That seems to escape you.
You must be a Democrat.
I used to be civil.
Then a pack of knuckle dragging conservative Christians went and elected an orange haired baboon as potus.
So all I am doing is what they do.
You $hit for brains a$$wipe $hithole.
You are a real Hoot!
I’m surprised the HTH
published our back and forth.
I’m done with you.
I am very real.
You are the hoot.
I was done with you on day 1
You and Steve D. go get a room.
Every tooth can be examined in this picture.
Be glad that he does not let you inspect his gums (as usually done in this country).
Everybody made it through FURLOUGHS last time around and they worked quite well.
Every resident should share in the sacrifice.
Living within OUR Means is NOT happening…..look deeper and closer to Home for the fat Harry…..we are not piggy banks for the coddled County and State.
Enough.
FULOUGHS
Thank you for telling it like it is!
Busy hiring his friends and supporters to push paper. Nice job Harry. NO Audits. NO Transparency, NO Accountability. Screwing the community once again. A lot of us expected more of the same.
Lets do the math….
200,000 Citizen Residents of the Big Island.
500 MILLION budget ….. ( ? )
500 HUNDRED MILLION ( also known as ONE HALF TRILLION DOLLARS ( per year )
500 MILLION divided by 200,00 Citizen Residents = $2500+ dollars ( cost / debt ) for Every Man Woman and Child citizen resident of the Big Island.
And you still DEMAND More …. you are barking up the wrong tree County and State.
You go looking a little more Harry and you will d=fins=d All a=sorts of fat to cut rather than raising GET Taxes and Gas Taxes.
President Trump is also dipping into the Gas Tax with a proposed .25 cent per gallon tax.
Harry…..we are simple people and we are mostly not overly wealthy people.
You county and State folks got YOUR bases covered and raises coming in like clock work.
Stay away from raising taxes for county employees…..you guys already got yours.
A simple family of Four is on the hook for a cool $10,000 per year…..NO Harry….Look inward for the solution.
Math is a bit Off. 500M is half a Billion Not Trillion
oops and thanks
Good analysis. Who on this island has $2,500 in the bank? Yet this is the cost per person of our unsustainable government. A lot of retired county employees at the beach park with their boomboxes.
All pension contributions should be immediately stopped to all county employees, and a 401k like system should be set up to replace the current govt. pension system. Why should your tax dollars go to pay for someone else’s retirement? Private sector workers by and large must save 100% for their own retirement, and do not get nearly the same level of benefits as do these government workers. It is just not right.
Here’s a thought. Any deficit must be resolved by cutting government worker salaries and pensions.
Harry Kim was the first mayor to top $400 million in spending, and now he’s the first to top $500 million. What a guy.
On pace to reach his goal of $600 million in four years. The only thing he’s accomplished since he took over is doing the opposite of what he promised, spent money on unproductive contracts for friends, spent thousands on a handful of homeless individuals and we are no where near solving squat, cancelled contracts that are costing taxpayers millions in attorney fees and other contractual violations, while being silent and dismissive of the insane raises his staff and himself received. Lie tax spend and cry for more.
Do a payroll lag like the one Cayetano did to the state employees in 1998. Or do a furlough like Lingle did her last year in office. It worked until parents realized they needed babysitters because there was no school on Fridays and sometimes Mondays simultaneously. This time do a blanket furlough statewide. Whatever the services do it across the board-fair and equitable.