Lawmakers warn of budget strain at Keaau town hall for Puna residents
At Keaau Armory, three lawmakers faced Puna residents as a projected $1.5 billion deficit threatened services, roads and everyday costs across lower Puna.
Three Hawaii Island lawmakers met with about three dozen Puna residents at the Keaau Armory on June 28 as a $1.5 billion deficit began to crowd out the state’s room to maneuver. Greggor Ilagan, Jeanne Kapela and Chris Todd took questions in a district where the cost of living, transportation and public services all run through the same shrinking budget.
Todd, who chairs the House Finance Committee, said state economists are projecting the shortfall at the end of the six-year financial plan, a sharp swing from the prior year’s $4 billion to $5 billion surplus. He said the reversal stemmed from the 2024 income tax cut and wider federal uncertainty, and that new federal law changes could add tens of millions of dollars a year in costs for the Department of Human Services alone because of programs such as Medicaid and SNAP. The Council on Revenues’ January 2025 forecast had already cut expected general fund growth for fiscal 2026 to -1.5 percent, after 6.4 percent growth in fiscal 2025.
The lawmakers spoke to a region that stretches well beyond Keaau. Ilagan represents lower Puna, Kapela serves a district running from South Kona through Kaū north to Kurtistown, and Todd represents portions of Hilo and Puna. The Puna Community Development Plan covers Council Districts 4 and 5 and parts of Districts 3 and 6, a reminder that the area’s needs reach from roads and emergency access to the everyday public services that many households rely on.
In spring 2026, county and FEMA assistance centers operated there for residents hit by the March 2026 Kona low storms.
The 2025 budget set aside $2.5 million for the Puna Alternate Route Study after earlier funding lapsed in mid-2024, including $1.5 million for a Puna Makai alternate route study that required county matching funds. Highway 130, or Keaau-Pāhoa Road, came close to inundation during the June 27, 2014 lava flow.
The broader 2026-2027 state budget, signed by Gov. Josh Green, appropriated $19.8 billion in fiscal 2026 and $19.7 billion in fiscal 2027 across all means of financing, including $10.53 billion and $10.58 billion in general funds. Green also line-item vetoed $110 million across the biennium because of federal funding uncertainty and lower revenue projections.
This article was produced by Prism’s automated news system from verified source data, official records, and press releases, then run through automated quality and moderation checks before publishing. The system is built and supervised by the people who set the standards it runs under. Read our full AI policy.
Did this article answer your question?
