Introduction

The state budget is a statement of our values. It’s where we invest in programs that increase fairness, opportunity and wellbeing for all. It reflects the state’s priorities as it addresses the operational and capital needs of Hawaiʻi’s three branches of government and the semi-autonomous agency responsible for the wellbeing of Native Hawaiians:

• The Executive Branch

• The Judiciary

• The Legislative Branch

• The Office of Hawaiian Affairs (OHA)

The state budget is a plan for spending based on available resources. Each branch of government provides a  proposed budget for its operations and capital needs to the legislature. 

The legislature considers, amends and appropriates funds for these budgets during legislative sessions. In most years, the legislature also authorizes grants-in-aid, usually to specific nonprofit organizations, which are included in the operating budget. The legislature introduces a variety of other bills for projects that require one-time spending.

The legislature authorizes spending in one of three major categories:

• The Operating Budget. Each branch and OHA has a budget for ongoing operations that is approved by the legislature. Usually, the operating budget is described in a single detailed budget bill for each branch.

• One-Time Appropriations. Short-term funding for priority needs and projects outside of ongoing budgets are approved in separate appropriations bills.

• Capital Improvement Projects. CIP funds pay for developing and improving infrastructure, roads, facilities, and more. CIPs are often carried out over more than one year and paid for with borrowed money.