Budget Basics

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)

Budget Proposals & Decision-making

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 for the upcoming fiscal period. 

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 governor may change legislatively-approved spending by vetoing or amending line items in appropriations bills. In 2024, Hawaiʻi Governor Josh Green used his veto power to reduce Executive Branch spending for FY25 by $1 billion, primarily by:

• Slashing new appropriations to the Rainy Day Fund from a proposed $300 million to just $1.00, and likewise cutting a prepayment to the state pension fund from $135 million to $1.00;

• Eliminating $460 million in one-time appropriations for Maui and wildfire risk management; and

• Selectively reducing operating budgets for six different Executive Branch departments by a combined total of $74 million.

Authorized spending falls into one of the following three categories:

The Operating Budget. OHA and our three branches of state government each 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.

For FY25, the budget bill for the Executive Branch is House Bill 1800. The budget bills for the Judiciary’s and the Legislature Branch’s budgets are HB1911 and HB2520, respectively. The legislature subsidizes a small part of OHA’s budget (OHA’s other funding comes from revenues from the public land trust, investments, fees and contributions). OHA’s biennial budget was approved in 2023 as HB133 and was not updated in 2024.

Other Appropriations. Short-term or one-time funding for needs outside of ongoing budgets are approved in separate appropriations bills. The legislature may also approve emergency appropriations (EAs) to cover unexpected operating shortfalls occurring in the current fiscal year. An unusually large amount of EA funding was approved in 2024.

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 money borrowed through bonds.