March 30, 2026, 10 a.m.
Hawaii State Capitol
Conference Room 211 and Videoconference
To: Senate Committee on Ways and Means
Sen. Donovan M. Dela Cruz, Chair
Sen. Sharon Y. Moriwaki, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: TESTIMONY WITH COMMENTS ON HB1800 HD1 — RELATING TO THE STATE BUDGET
Aloha Chair, Vice Chair and other Committee Members,
The Grassroot Institute of Hawaii offers comments on — and amendments to — HB1800 HD1, which would appropriate and allocate funds for the current and upcoming fiscal years.
The HD1 draft of the bill would allocate approximately $10.69 billion in general funds to state departments and agencies for fiscal 2027, up from $10.38 billion in the current fiscal year.
In terms of total means of financing, the bill would appropriate $20.47 billion — up from $19.73 in the current fiscal year’s budget. This figure contains all general, special, federal and other funds the state expects to receive in the upcoming fiscal year.
Grassroot believes that the state should seek to curtail additional spending this year to hedge against possible financial uncertainty and to preserve the income tax reductions the Legislature approved in 2024.
Grassroot respectfully requests that the Committee revert this bill to the original HB1800 language, amended to reflect Gov. Josh Green’s proposed budget amendments put forth in governor’s messages two, five and six.[1]
Together, these changes would reduce the amount of general funds appropriated in this bill by about $43 million on net.[2]
For context, the HB1800 HD1 version proposes to cut about $150 million — mostly in planned debt service and health benefit payments — from the governor’s proposed budget alongside appropriating more than $195 million in additional spending, with the largest increases going to the Department of Education and the Department of Land and Natural Resources.
The fact that the HD1 draft of this bill identified many ways to reduce the governor’s proposed budget shows that the Legislature can take measures to trim spending.
In addition to these cuts, Grassroot encourages the Committee to review the attached document that details how the state could save more than $1 billion over the next few years.
The Committee could begin by striking the $58 million special fund appropriation for Aloha Stadium, defunding at least some of $420 million allocated to the state’s more than 4,200 vacant positions and abolishing the Hawaii Tourism Authority to save $66 million.
For months, Hawaii taxpayers have been told that the state is in a difficult financial position.[3] But the spending increases proposed in the House draft of the budget bill do not reflect this sentiment — especially considering lawmakers are also contemplating ways to reduce the income tax reductions approved in 2024.
We urge the Committee to reject attempts to balloon the budget or take more hard-earned money from Hawaii taxpayers.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org
[1] Governor’s Message No. 2 (2026), Jan. 30, 2026; Governor’s Message No. 5 (2026), March 2, 2026; and Governor’s Message No. 6 (2026), March 24, 2026.
[2] Grassroot analysis of “Conference Report No. 1208-26,” HB1800 HD1, March 11, 2026.
[3] Chad Blair, “Hawaiʻi Governor’s Proposed State Budget Anticipates More Federal Cuts,” Honolulu Civil Beat, Dec. 22, 2025; and Daryl Huff, “Governor highlights progress, confronts budget crisis in legislative address,” Hawaii News Now, Jan. 26, 2026.
