Hawaiʻi Appleseed releases 2026–27 state budget primer and legislative recap
HONOLULU, Hawaiʻi — Each year, Hawaiʻi Appleseed analyzes the dense budget bill passed by the Legislature and distills it into a short, digestible primer. The FY 2026–27 Budget Primer explains what the state plans to fund and by how much, spanning just 12 pages with clear charts and graphics. It’s an essential reference for advocates and a useful introduction for anyone tracking government spending.
“This year’s budget was shaped by a perfect storm: the ongoing revenue loss from Act 46, hundreds of millions in federal cuts under H.R. 1, and the mounting costs of climate disaster recovery,” said Devin Thomas, Hawaiʻi Appleseed’s Director of Tax & Budget Policy.
In conjunction with the primer, Hawaiʻi Appleseed hosts the Hawaiʻi Budget Tracker—an interactive online tool that allows users to compare budget proposals from the Governor, House, and Senate side-by-side, view allocations by department, and track changes in real time.
Budget highlights include:
$20.32 billion in operating funds for the executive branch, plus $4.53 billion in capital improvement projects.
Obligated costs—pensions, health benefits, Medicaid, and debt payments—account for roughly $5 billion, a quarter of the executive budget.
The General Excise Tax remains the state’s largest revenue source at $5.56 billion (53.1%), followed by individual income taxes at $2.98 billion (28.4%).
The state’s regressive tax structure means the wealthiest 1% pay 10.1% in effective state and local taxes, while the poorest 20% pay 14.1%.
Key investments include:
$700 million for county transit funding and a new major disaster fund;
$200 million for Maui wildfire recovery, including rebuilding King Kamehameha III Elementary; and
$49.5 million for the New Aloha Stadium district.
To help demystify the policymaking process, Hawaiʻi Appleseed also releases Policy in Perspective, an annual report on the legislative session’s wins, losses, and lessons learned across food equity, transportation, housing, and tax policy.
“Policy in Perspective does more than catalog wins and losses,” said Will White, Hawaiʻi Appleseed’s Executive Director. “It analyzes why outcomes emerged the way they did. What we found is a pattern: reforms that would rebalance power away from established interests consistently fail.”
Key findings:
Tax Fairness: SB3125 paused tax cuts for high earners and added a surcharge on income over $1 million—a win. But broader reforms—closing the capital gains loophole, taxing investment income like work, and closing corporate loopholes—did not pass.
Housing: Reforms to lower housing costs—eliminating parking mandates, limiting ADU discretion, and funding DHHL—all failed. A conveyance tax bill that would have provided $60 million annually for DHHL died in conference.
Food Equity: SB3245 simplified SNAP recertification for kūpuna, and HB1518 created a pre-release SNAP application for incarcerated individuals—landmark wins. Farm to Families funding was secured through the budget bill, HB1800.
Transportation Equity: “Summer Streets” pilot and e-bike classification passed, but pedestrian safety, jaywalking reform, and Keiki Ride Free died without explanation.
“We began writing Policy in Perspective in 2021 to chronicle our work and identify recurring barriers,” said White. “The legislative session is fast and dense, making it hard for the public to follow. But an informed public is the bedrock of democracy. Our hope is these reports help strengthen that bedrock.”
