Hawaiʻi County Mayor Proposes 1.4% Budget Increase for Safety, Infrastructure, Recreation

Mayor Kimo Alameda submitted a proposed Hawaiʻi County operating budget of $966,891,661 to the Hawaiʻi County Council on Friday, seeking a 1.4% increase of $13.47 million to advance priorities in public safety, infrastructure and recreation for fiscal year 2026–2027.

Tucked within the proposal is a $15 million appropriation for the county's budget stabilization fund, commonly known as a rainy day fund, designed to shore up long-term financial stability. That fiscal cushion sits alongside a capital program that Alameda himself described with notable candor. "Not all of it is funded," he told Big Island Now, characterizing the capital budget as a wish list.

That wish list is substantial: the proposed capital budget and six-year Capital Improvements Program encompasses 45 projects with a total appropriation of $358.74 million. Alameda's letter to the Council breaks down the intended funding sources: $285.2 million would come in whole or in part from bonds, $42 million from federal grants, $23 million from state funds and $8.5 million from private sources.

On the revenue side, the operating budget includes projections to inform the Council's upcoming work setting tax rates for the new fiscal year. Real property tax revenues are expected to climb $8.6 million, a 1.6% increase driven primarily by rising taxable values and new construction across the island. General excise tax and transient accommodations tax receipts are also projected to increase slightly, according to Alameda's letter.

The Council will also be setting the precise rate for a newly created Tier 3 property tax classification targeting luxury second homes valued above $4 million. The Council passed the bill establishing that tier prior to the budget submission; the rate itself will be determined during budget deliberations.

The budget review process unfolds against a broader state fiscal backdrop. Governor Josh Green released a supplemental budget proposal in December 2025 calling for $20.4 billion in total state spending in fiscal 2027, a 3.2% increase from recommended fiscal 2026 levels, with record investments in infrastructure, housing and healthcare. The state and county budgets operate on separate tracks, and no direct linkage between Governor Green's supplemental appropriations and specific Hawaiʻi County capital projects has been established in budget documents submitted to the Council.

The Hawaiʻi County Council holds final authority to approve the operating budget, set tax rates and act on the capital program.