Budget, Finance, and Economic Development Committee (2025-2027) - 2026-03-25
Meeting Intelligence Preview
Meeting Summary
The Budget, Finance, and Economic Development Committee met on March 25, 2026, receiving the mayor's proposed FY27 budget and hearing from UHERO's Dr. Carl Bonham on economic conditions affecting Maui County. Key discussions included the Iran war's impact on oil prices and tourism, a proposed grants division under the mayor's office to streamline county grant administration, and survey results showing grantees wait an average of 20 months through the grant process. The committee also established budget procedures including real property tax rate proposals due March 31.
Key Decisions (3)
Economic Outlook Discussion with UHERO
Committee received presentation from Dr. Carl Bonham of UHERO on economic conditions affecting Maui County, including impacts of Iran war on oil prices, tourism dependency on US visitors, and long-term economic challenges. Item deferred for follow-up questions to be submitted in writing.
Administration and Management of Grants
Committee discussed grant administration challenges including average 20-month processing times reported in survey. Administration announced plans for new grants division in FY27 budget under mayor's office with 5 positions, to transition to Department of Management in FY28. Division will handle small grants under $25,000 and residency area funds.
BFED-1 Proposed FY27 Budget Procedures
Committee received mayor's proposed FY27 budget and established procedures for budget review. Real property tax rate proposals due March 31 at 4:30 PM. Member priorities and conditions due April 17 at 4:30 PM. Decision week scheduled April 20-24.
Development Activity (1)
Grants Division Creation
New grants division proposed in FY27 budget with 5 unfunded positions under Office of the Mayor, to transition to Department of Management in FY28. Will handle small grants under $25,000, residency area funds, and provide countywide grant coordination.
Market Signals (5)
Housing Demand
UHERO reports median condo prices on Maui fell 23% from 2024 to 2025, with projections of 25-37% total decline by 2031 related to TVR phase-out under Bill 9.
Sentiment
UHERO forecasts continued population decline on Maui through the rest of the decade, with natural population change near zero and net out-migration of approximately 1,000 people in 2025.
Commercial Demand
High-end visitor spending is sustaining Maui's tourism economy, with only luxury properties experiencing rising occupancy rates and room rates while overall hotel occupancy remains weak at 65-67%.
Infrastructure
Iran war has pushed oil prices approximately $40 above year-end 2024 levels, with UHERO projecting 50 basis points additional inflation and elevated mortgage rates (up 40 basis points) through 2027.
Labor
Federal civilian jobs on Maui have dropped approximately 13% from pre-fire levels due to DOGE cutbacks and hiring freezes, with total nonfarm payroll still 1,800-1,900 jobs below July 2023 levels.