Executive Summary

The legislature’s single most important policy decision is agreeing on the state’s budget. The budget is the blueprint that describes how public funds are to be allocated, and it is a concrete demonstration of what we, as a society, value—and by how much.

In every odd year, Hawaiʻi’s legislature approves a biennial budget for the up-coming two fiscal years. This budget supports operations, capital improvements and one-time spending for the executive and judiciary branches, as well as a subsidy for the Office of Hawaiian Affairs (OHA). (The legislature’s budget is appropriated one year at a time.)

The two-year budget passed by the 2023 legislature approves nearly $44 billion in spending and provides unprecedented support for housing and homelessness, early learning, and health—all much-needed investments in the wellbeing of Hawaiʻi’s people, both now and for future generations. 

This year’s budget also included some unusual provisions: notably, exceeding the constitutional budget ceiling, giving the governor flexibility to spend up to $200 million, and providing an unprecedented amount of short-term general funds to finance capital projects that are typically carried out over several years and funded by bonds. Post session, the governor announced plans for a line-item veto to reduce spending by $1.1 billion.

This brief offers an overview of the Fiscal Biennium (FB) 2024–25 budget and analyzes the spending—and reductions—planned for the Fiscal Year (FY) that starts July 1, 2023.