Budget, Finance, and Economic Development Committee (2025-2027) - 2026-03-17
Meeting Intelligence Preview
Meeting Summary
The Budget Finance Economic Development Committee met on March 17, 2026, receiving updates on EUTF health benefits showing County of Maui will be 93.7% funded for OPEB by fiscal year 2028, and discussed countywide grants modernization including new administrative rules, a small grants program for awards under $25,000, and changes to advancement documentation requirements from 30 to 90 days. The committee also addressed storm recovery impacts across Maui County and scheduled a follow-up meeting for March 25 at 12:30 PM to continue grants discussion after receiving the mayor's proposed FY27 budget.
Key Decisions (4)
EUTF Health Benefits Trust Fund Update
Committee received presentation from EUTF Assistant Administrator Donna Tonaki on health benefits, showing County of Maui at 93.7% funded ratio for OPEB with full funding projected by FY2028. Annual required contributions will drop from approximately $35.8 million to $14 million once fully funded.
Administration and Management of Grants Discussion
Committee discussed countywide grants modernization plan including new administrative rules, fiscal sponsor policy, small grants program for $25,000 or less, and changes to advancement documentation requirements from 30 to 90 days. Managing Director Nishita reported on two active grants: Montokuji Mission shoreline mitigation ($500,000 with $380,823.88 reimbursed) and Lahaina Community Land Trust ($5,000,000 with no reimbursements to date).
UHERO Economic Outlook Presentation Cancelled
Chair Sugimura cancelled the County of Maui State of Hawaii economic outlook presentation (BFED 25) because the presenter was not available. Item to be rescheduled.
FY26 Budget Process Procedures
Committee reviewed budget calendar and procedures for upcoming FY27 budget session. Departments designated not to appear before council: council services, prosecuting attorney, corporation counsel, liquor, OEV Resources, county clerk, auditor, and East Maui Water Authority.
Development Activity (2)
Montokuji Mission Shoreline Mitigation Project
Shoreline stabilization project with total grant of $500,000. Phase 3 nearing completion. Phases 1 and 2 pending Department of Health approval for UST remediation. $380,823.88 reimbursed to date with $119,176.12 remaining.
Lahaina Community Land Trust Grant
$5,000,000 grant for managed retreat purposes. Notice to proceed issued July 10, 2025. Project end date June 30, 2026. No reimbursement requests submitted to date.
Market Signals (4)
Infrastructure
Storm damage from recent weather event has closed roads in East Maui with town on emergency generator, and South Kihei Road repairs expected to take 8 weeks or more from Longs to ABC store intersection.
Labor
County of Maui experiencing recruitment challenges with benefits package changes; administration implemented 100% health premium coverage for HMSA 75-25 and Kaiser Standard plans to compete with private sector, though bargaining units 11 (firefighters) and 15 (water safety) not yet covered pending contract ratification.
Other
County grant funding has grown from $44.1 million in FY21 to $123 million in FY26, with seven departments now administering over $1 million in grants each, indicating significant expansion of public-private partnerships.
Sentiment
OPEB funding for County of Maui at 93.7% funded ratio, projected to reach 100% by FY2028, significantly ahead of state timeline of 2040, with annual required contributions expected to drop from $35.8 million to $14 million after full funding.