BY NBC NEWS
HOMOLUA — Hawaii Governor Josh Green announced on Monday that he will be asking lawmakers for $425 million in the upcoming fiscal year to aid in Maui’s recovery from the wildfires that occurred in August, as well as millions more to lower the state’s overall risk of wildfires.
This is Green’s first proposed budget since August 8, when a swift-moving wildfire destroyed Maui’s ancient town of Lahaina and left at least 100 people dead.
We realized how important it is to support those who lost everything on Maui. We are going to reconcile them. “We will assist them in surviving,” Green declared during a press conference.
Around 12,000 individuals were forced to flee the fire; of them, half are still staying in hotels as a result of the acute housing scarcity on the island.
Hawaii is more well-known for its lush jungle and waterfall scenery than for its frequent wildfires.
However, the frequency and severity of droughts have increased due to climate change, increasing the risk of wildfires on the islands.
The majority of the cleanup and temporary housing costs in Lahaina are being paid for by the federal government. According to Green, the state will pay roughly $500 million of the more than $5 billion that would be needed to rebuild after the fire.
The governor’s recommendations apply to the fiscal year that starts on July 1. Legislators will take the ideas into account while drafting the state budget during the Jan. 17–20 legislative session.
Among the suggestions are:
1. An estimated $200 million would be used to pay Maui insurance claims
2. $186 million for unforeseen recovery expenses
3. The state’s Department of Land and Natural Resources, which oversees state forests, will receive $10 million for fire and emergency response equipment. The same department will also receive $7.4 million for efforts to prevent and respond to fires.
4. Twenty posts at the Hawaii Emergency Management Agency to work on wildfire issues, fire assessments, and firebreaks
5. $33 million to rebuild and repair state highways in Lahaina, primarily using federal sources
Apart from firefighting, Green suggested allocating $22 million for Honolulu’s senior citizen housing, $10 million for building upgrades at the Hawaii Public Housing Authority, and $30 million in tax benefits for households with preschool-aged children.
The $1.5 billion rainy day fund for the state was not used, according to the governor. He claimed that the state will have wiggle room thanks to this money and the minimum $500 million surplus anticipated at the end of the fiscal year. According to Green, this raises the state’s credit rating and enables it to sell bonds for less money.
Hawaii’s forecast for tax revenue hasn’t been as dire as first thought, despite the fact that, following the fire, tourism on Maui, one of the state’s major tourist destinations, fell precipitously.
The University of Hawaii Economic Research Organization’s executive director, Carl Bonham, stated last week that the state has recently seen many months of significant rises in tax collections, largely attributable to income taxes. Revenue from the excise tax and the transient accommodations tax, which are both highly impacted by the number of visitors to the state, has not been as strong as anticipated, he said.
The state Council on Revenues, which projects tax revenue for the legislature and governor, will revise its projection during a meeting on January 8.
