Budget, Finance, and Economic Development Committee (2025-2027) - 2026-04-24
Meeting Intelligence Preview
Meeting Summary
The Budget, Finance, and Economic Development Committee worked to balance the FY2027 budget, ultimately achieving balance through adjustments to non-owner occupied property tax tier thresholds rather than rate increases. Key actions included reducing the Lahaina Restoration Foundation courthouse/prison rebuild appropriation from $9.7M to $3.9M, cutting the Paris housing program by $1M to $2M total, and reducing the managed retreat fund contribution by $300,000 to $500,000. The committee also conditioned $9M in GET excise tax funds for the Ho'onani Village Mixed Use Development Project water infrastructure.
Key Decisions (17)
Non-Owner Occupied Property Tax Tier Threshold Changes
Changed tier two threshold from $1,001,000-$3,000,000 to $1,001,000-$2,500,000, and tier three from $3,000,000+ to $2,500,000+. No rate changes. Generated $5,668,013 to balance general fund. Vote: 8-1 (Sugimura opposed).
Lahaina Restoration Foundation Funding Reduction
Reduced appropriation for rebuilding old Lahaina courthouse and prison from original $9.7M request to $3.9M, a $5.89M cut. Department of Management Office of Recovery General fund.
Paris Housing Program Reduction
Member Batangan moved to reduce Paris program appropriation by $1M, leaving $2M total. Originally a legacy program for Member Kama.
Ho'onani Village Mixed Use Development GET Funding Condition
Conditioned $9M in GET excise tax fund for Ho'onani Village Mixed Use Development Project for well and water system improvement infrastructure and connections.
Managed Retreat Fund Reduction
Reduced transfer to managed retreat fund by $300,000 instead of proposed $800,000, leaving $500,000 contribution. Fund balance will be approximately $9.5M.
Legislative Branch Office Renovations Funding Source Change
Changed funding source for Office of County Council CIP project legislative branch office renovations from general fund to bond, freeing up $900,000 in general fund.
South Maui Storm Relief Appropriation Withdrawal
Member Cook withdrew $2M appropriation for assisting South Maui residents and small businesses affected by Kono Low Storms, as federal government and Maui County disaster funds are already covering mold mediation and small business assistance.
Kihei Drainage Master Plan Funding Offset
Reduced managed retreat revolving fund anticipated revenues by $1M to offset Member Cook's Kihei drainage master plan work.
Renewable Energy Program Grants Elimination
Reduced environmental protection grants renewable energy program by $50,000 to zero, as applicants were mostly farms that could apply to other farm grant programs.
Environmental Protection Grants Reduction
Reduced environmental protection grants by $50,000 as Namaka o Maliko funding can be absorbed into existing $800,000.
Firefighter Supplemental Agreement Funding Condition
Amended fringe benefits conditional language to reserve $1,184,375 for bargaining units 15 contract cost items and supplemental agreements for bargaining units 11 and 15 (firefighters and ocean safety).
Bill 61 Fiscal Reserve Fund Referred to BFED
Bill establishing new chapter 3.101 Maui County Code for fiscal reserve fund referred to Budget, Finance, and Economic Development Committee for later consideration.
Bill 62 Solid Waste and Environmental Funds
First passage of bill amending sections 3.54.020, 3.54025, 3.55020, and 3.55030 on Solid Waste Management Fund and Environmental Protection and Sustainability Fund.
Bill 63 Hawaiian Cultural Restoration Revolving Fund Rename
First passage of bill renaming Hawaiian Cultural Restoration Revolving Fund and using funds to expand Lahaina Royal Complex area.
Bill 64 Electric Vehicle Charging Fees
First passage of bill amending Title III Maui County Code on electric vehicle charging fees.
Bills 66 and 67 Referred to ADEPT Committee
Member Johnson's bills referred to ADEPT Committee for further consideration, with potential charter amendment to be heard in GREAT Committee.
Bill 76 Water System Development Fee Referred to Water Committee
Bill amending Title 14, Article 1 on water system development fee referred to Water Committee. Budget Director requested passage by June 30 or Appendix B changes needed.
Development Activity (2)
Ho'onani Village Mixed Use Development
Mixed use development requiring well and water system improvement infrastructure and connections. $9M in GET excise tax funds conditioned for water infrastructure.
Lahaina Royal Complex Restoration
Rebuilding historic county assets including courthouse and prison. Funding reduced from $9.7M to $3.9M. Department of OEV Resources has brought in additional $2M for restoration.
Market Signals (5)
Housing Demand
Committee expressed urgency for housing development, noting 'we needed housing last week, last year, last decade' when conditioning funds for Ho'onani Village project.
Sentiment
Non-owner occupied property owners experiencing significant tax burden increases, with reports of annual taxes jumping from $25,000 to $75,000, causing concern about investment climate.
Infrastructure
Managed retreat fund has been actively used for shoreline property relocations including Baldwin Pavilion, Paia crematorium ($500K), and is being considered for Lahaina Community Land Trust conservation easements.
Housing Demand
Multiple buildings condemned due to coastal erosion and storm damage including Building F at Kahana Sunset and buildings in South Maui after Kona Low storms.
Sentiment
Federal tax policy changes including 100% bonus depreciation and increased SALT deductions for high-income earners noted as context for local tax discussions on non-owner occupied properties.