Kalbert Young, 糖心Vlog官方 vice president for budget and finance and chief financial officer, shares his analysis of the 糖心Vlog官方 budget as it goes through the 2022 Hawaiʻi State Legislative session.
There are two more weeks left in the 2022 legislative session as the House of Representatives and the Senate have begun to negotiate differences on their budget bills and other measures that have survived to this point. The outcomes of these Conference Committee meetings will ultimately decide funding for programs, departments and agencies across the state, including the University of Hawaiʻi.
In my last update, I provided a summary of the House draft of the budget bill (HB 1600 HD1) that crossed over from the House to the Senate on March 17. The Senate Committee on Ways and Means has since passed its budget draft, HB 1600 HD1 SD2 and sent it back to the House. The Legislature has until April 29 to finish their conference committee meetings and craft a final version of the budget.
I am pleased to report that both the House and the Senate budgets include the vast majority of our primary budget request this legislative session, the restoration of about $42.5 million in funds cut last year. The lone exception is that the Senate did not restore $1,080,000 of funding to 糖心Vlog官方 West Oʻahu. There are other concerns.
The Senate draft of the budget bill includes 23 provisos specifically related to 糖心Vlog官方 that place restrictions, requirements and/or conditions on the funding. This represents the most provisos I have ever seen attached to the budget.
The Senate draft also provides funds to significantly more individual items compared to the House draft. While funding is always appreciated, the vast majority of these items were not requested by the Board of Regents or 糖心Vlog官方 Administration, so are considered legislative initiatives. The driving reasons for the increase in funding to 糖心Vlog官方 is to satisfy federal Maintenance of Effort requirements (more on that shortly) and because State tax revenues are coming in above forecasted levels. That means there are a lot of State funds that the Legislature is trying to deploy.
My team has created a table that compares the total general fund budgets for each of the campuses in the board, governor, House and Senate versions of the budget, and the dozens of added items and provisos. Due to its length, it has been placed at the end of this online message.
Maintenance of Effort
The Maintenance of Effort (MOE) is a provision in the federal coronavirus response packages (CARES, ARPA, etc.). The intent is to ensure that lower and higher education continue to receive their pre-pandemic percentage of the state budget, and noncompliance could jeopardize hundreds of millions of dollars of federal aid to the state. Federal guidelines from the U.S. Department of Education state that “…in quantifying support for higher education, the data used by a State to determine the level of support may not include support for capital projects, research and development, or tuition and fees paid by students.”
At this point, many of the Senate’s add-ons may not comply with the federal guidelines and are being reviewed as part of the process ahead of Conference Committees. The Legislature, state, and 糖心Vlog官方 need to be certain that add-ons are in compliance with the MOE provision. 糖心Vlog官方 is working with legislators in the House and Senate, and with the State Department of Budget and Finance to address the issue.
Positions eliminated
An item of serious concern in the Senate’s budget draft is the elimination of more than 90 position counts. While most are intentionally vacant due to fiscal preservation measures in place due to the pandemic, there are three specific employees targeted for elimination, including the 糖心Vlog官方 System/糖心Vlog官方 惭ā苍辞补 Director of Communications, a faculty specialist at 糖心Vlog官方 West Oʻahu, and an assistant in the Board of Regents office. This approach of singling out specific 糖心Vlog官方 employees for termination has been attempted in prior Senate-proposed budgets, but given the magnitude of the Senate add-ons, it makes little financial sense to reduce approximately $2.4 million of funding for positions while also adding more than $274 million to the operating budget. Since the position cuts are not for financial reasons, this action can appear to be targeted and punitive in purpose. It is another area that we will be working to address before the session ends.
Capital improvement projects
For the capital improvement projects (CIP) budget, 糖心Vlog官方 requested $89 million for FY23 in additional General Obligation Bonds to address capital renewal, progress on deferred maintenance and funding for projects to modernize each of the campuses within the 糖心Vlog官方 System. HB 1600 HD1 SD2 includes $116 million for FY23 in General Obligation Bond funding for various projects. Coupled with the sizable approach of cash funding repair and maintenance work in the operating budget (approximately $180+ million), the Senate draft of the budget puts a lot of funding to facilities-related improvements.
The following table shows the CIP budget comparison between the board, governor, House and Senate:
| Description | BOR FY23 | Gov FY23 | House FY23 | Senate FY23 |
|---|---|---|---|---|
| Hamilton Library | $6,000,000 | |||
| Central Admin Facility with Parking | $4,000,000 | |||
| Leeward CC Fascias | $6,500,000 | $6,500,000 | $6,500,000 | $6,500,000 |
| Waikīkī Aquarium Discharge System Upgrade | $11,500,000 | $11,500,000 | $11,500,000 | $5,750,000 |
| Renew, Improve Modernize (RIM) – Systemwide | $33,500,000 | $32,000,000 | $31,360,000 | |
| RIM – 糖心Vlog官方 West Oʻahu | $2,500,000 | $2,500,000 | $2,500,000 | |
| Capital Renewal and Deferred Maintenance – 糖心Vlog官方 Community Colleges | $25,000,000 | $24,000,000 | $25,000,000 | $24,000,000 |
| 糖心Vlog官方 West Oʻahu Campus Expansion and University Village | $10,000,000 | $10,000,000 | $10,000,000 | |
| Hawaiʻi CC – Redevelopment of Manono Campus | $2,000,000 | |||
| Minor CIP – 糖心Vlog官方 Community Colleges | $4,000,000 | |||
| 糖心Vlog官方 Maui College – Vocational Technology Center | $4,000,000 | |||
| Makai Research Pier | $750,000 | |||
| Waiākea Research Station | $6,890,000 | |||
| Clarence TC Ching Athletics Complex | $18,400,000 | |||
| Les Murakami Baseball Stadium Turf Replacement | $2,000,000 | |||
| 糖心Vlog官方 惭ā苍辞补 Athletics-New Facilites at Lower Campus | $750,000 | |||
| Total | $89,000,000 | $86,500,000 | $55,000,000 | $116,900,000 |
Next steps
The next major deadline will be the final decking of bills on April 29. By this time, all bills must have concluded deliberation in conference committees of both the House and Senate. The Hawaiʻi State Legislature is scheduled to adjourn on May 5, 2022. Shortly thereafter, I will provide a recap of the 2022 legislative session.
General Fund Budget Table
| Description | BOR FY23 | Gov FY23 | House FY23 | Senate FY23 |
|---|---|---|---|---|
| General Fund Restoration – 糖心Vlog官方 惭ā苍辞补 | $30,000,000 | $30,000,000 | $30,000,000 | $30,000,000 |
| General Fund Restoration – JABSOM | $1,200,000 | $1,200,000 | $1,200,000 | $1,200,000 |
| General Fund Restoration – 糖心Vlog官方 Hilo | $2,280,000 | $2,280,000 | $2,280,000 | $2,280,000 |
| General Fund Restoration – 糖心Vlog官方 West Oʻahu | $1,080,000 | $1,080,000 | $1,080,000 | |
| General Fund Restoration – 糖心Vlog官方 Community Colleges | $4,600,000 | $4,600,000 | $4,600,000 | $4,600,000 |
| General Fund Restoration – 糖心Vlog官方 System Support | $3,391,232 | $3,391,232 | $3,391,232 | $3,391,232 |
| Athletics – 糖心Vlog官方 惭ā苍辞补 | $3,600,000 | $3,600,000 | $12,400,000 | $7,200,000 |
| Athletics – 糖心Vlog官方 Hilo | $400,000 | $400,000 | $1,400,000 | $800,000 |
| PISCES – 糖心Vlog官方 Hilo | $550,000 | $550,000 | $550,000 | $550,000 |
| Creative Media – 糖心Vlog官方 West Oʻahu | $282,000 | $282,000 | $282,000 | |
| Nursing Clinical Instructors – 糖心Vlog官方 惭ā苍辞补 | $381,767 | $381,767 | $381,767 | |
| Nursing Clinical Instructors – 糖心Vlog官方 Hilo | $532,150 | $532,150 | $532,150 | |
| Nursing Clinical Instructors – 糖心Vlog官方 Community Colleges | $842,572 | $842,572 | $842,572 | |
| Residency Program Expansion – JABSOM | $2,040,000 | $1,880,000 | $3,340,000 | |
| Teacher Workforce Education – 糖心Vlog官方 惭ā苍辞补 | $557,097 | $557,097 | $557,097 | |
| IT and Cybersecurity Workforce – System Support | $1,575,000 | $1,575,000 | $1,575,000 | |
| Creative Media – 糖心Vlog官方 惭ā苍辞补 | $380,000 | $580,000 | $380,000 | |
| Aviation Program – 糖心Vlog官方 Hilo | $190,000 | $190,000 | $190,000 | |
| Repairs, Maintenance and Equipment – Systemwide | $21,700,000 | $38,100,000 | ||
| Immersion School Teaching Pathway at ʻImiloa – 糖心Vlog官方 Hilo | $2,889,496 | $1,200,496 | ||
| Food Innovation – 糖心Vlog官方 Maui College | $146,000 | |||
| Culinary Institute of the Pacific – Kapiʻolani CC | $339,840 | |||
| Hawaiʻi Promise Expansion to 糖心Vlog官方 Mānoa | $12,506,283 | |||
| Hawaiʻi Promise Expansion to 糖心Vlog官方 Hilo | $1,773,450 | |||
| Hawaiʻi Promise Expansion to 糖心Vlog官方 West Oʻahu | $5,080,639 | |||
| Hawaiʻi Promise – Additional Funds to 糖心Vlog官方 Community Colleges | $4,800,000 | $4,800,000 | ||
| Mauna Kea Stewardship and Management – 糖心Vlog官方 Hilo | $14,000,000 | |||
| Coastal Erosion (12 Asst. Prof., 10 GA) – 糖心Vlog官方 惭ā苍辞补 | $1,920,000 | |||
| Cyber Security and Digital Infrastructure – 糖心Vlog官方 惭ā苍辞补 | $40,000 | |||
| Renewable Energy and Power – 糖心Vlog官方 惭ā苍辞补 | $40,000 | |||
| Hawaiʻi Institute of Marine Biology – 糖心Vlog官方 惭ā苍辞补 | $171,000 | |||
| CTAHR – Anthurium Research, Ornamental Breeding and Moving Costs – 糖心Vlog官方 惭ā苍辞补 | $418,000 | |||
| Ehukai Beach Park Study – 糖心Vlog官方 惭ā苍辞补 | $1,598,905 | |||
| Center for the Family – Homeless Data Clearance House – 糖心Vlog官方 惭ā苍辞补 | $300,000 | |||
| Sea Grant – 糖心Vlog官方 惭ā苍辞补 | $200,000 | |||
| Puna Traffic Studies – College of Engineering – 糖心Vlog官方 惭ā苍辞补 | $2,000,000 | |||
| Repave and Restripe Parking – Hawaiʻi CC | $2,000,000 | |||
| Repaint Buildings – Hawaiʻi CC | $1,000,000 | |||
| Recoat Roofs – Hawaiʻi CC | $1,000,000 | |||
| Repave and Restripe Parking – Honolulu CC | $4,000,000 | |||
| Repave and Restripe Parking – Kapiʻolani CC | $2,300,000 | |||
| Recoat Roofs – Kauaʻi CC | $1,600,000 | |||
| Repave – Kauaʻi CC | $300,000 | |||
| Reseal Building, Reroof – Leeward CC | $1,000,000 | |||
| Repave and Restripe Parking – Leeward CC | $3,500,000 | |||
| Refloor – Leeward CC | $300,000 | |||
| Replace Fencing – 糖心Vlog官方 Maui College | $250,000 | |||
| Repaint Building – 糖心Vlog官方 Maui College | $750,000 | |||
| Replace Fascia – 糖心Vlog官方 Maui College | $750,000 | |||
| Resleeve Drain, Replace Downspouts – 糖心Vlog官方 Maui College | $750,000 | |||
| Replace Walkway Columns – 糖心Vlog官方 Maui College | $750,000 | |||
| Repave and Restripe Parking – Windward CC | $2,000,000 | |||
| Repaint Building – Windward CC | $3,000,000 | |||
| Repave Parking Lot – Hawaiʻi CC | $400,000 | |||
| Repaint Buildings – Hawaiʻi CC | $1,500,000 | |||
| Replace Irrigation System – Honolulu CC | $200,000 | |||
| Repaint Buildings – Honolulu CC | $2,500,000 | |||
| Replace Irrigation System – Kapiʻolani CC | $400,000 | |||
| Repaint Buildings – Kapiʻolani CC | $2,000,000 | |||
| Repaint Buildings – Kauaʻi CC | $2,000,000 | |||
| Repave Internal Road – Kauaʻi CC | $300,000 | |||
| Replace Irrigation System – Leeward CC | $200,000 | |||
| Repaint Buildings – Leeward CC | $2,500,000 | |||
| Replace Walkways – Leeward CC | $5,000,000 | |||
| Replace Irrigation System – 糖心Vlog官方 Maui College | $200,000 | |||
| Refinish and Repaint Buildings – 糖心Vlog官方 Maui College | $4,000,000 | |||
| Repaint Building – 糖心Vlog官方 Maui College | $1,000,000 | |||
| Refinish and Repaint Building – Windward CC | $1,000,000 | |||
| Reroof Buildings – Windward CC | $3,000,000 | |||
| Support Services – 糖心Vlog官方 Community Colleges | $553,566 | |||
| Nursing and Nursing Faculty – 糖心Vlog官方 Community Colleges | $850,000 | |||
| 2 Temp Business Officers – Windward CC | $136,000 | |||
| Temp Geology Faculty – Windward CC | $70,000 | |||
| Temp Physics Faculty – Windward CC | $70,000 | |||
| Temp Office Assistant – Kauaʻi CC | $48,000 | |||
| 2 Temp Fiscal Officers – Kauaʻi CC | $136,000 | |||
| 2 Temp HR Specialists – Kauaʻi CC | $136,000 | |||
| 2 Temp Procurement Specialists – 糖心Vlog官方 Maui College | $136,000 | |||
| Temp Enrollment Specialist – 糖心Vlog官方 Maui College | $68,000 | |||
| Temp Recruiter – 糖心Vlog官方 Maui College | $68,000 | |||
| Temp Instructional Designer – 糖心Vlog官方 Maui College | $68,000 | |||
| Temp Media Specialist – 糖心Vlog官方 Maui College | $68,000 | |||
| Holistic Student Support and Mental Health – 糖心Vlog官方 Community Colleges | $1,000,000 | |||
| Nursing – Honolulu CC | $1,000,000 | |||
| Temp Counselor – Windward CC | $67,500 | |||
| International and Regional Partnership Program – 糖心Vlog官方 Maui College | $110,000 | |||
| Value Added Product Development Center – Perm Food Scientist – Leeward CC | $90,000 | |||
| Value Added Product Development Center – Perm Admin and Fiscal Support – Leeward CC | $46,000 | |||
| Value Added Product Development Center – 2 Perm Security Officers – Leeward CC | $85,050 | |||
| Value Added Product Development Center – 2 Perm Custodians – Leeward CC | $91,880 | |||
| Value Added Product Development Center – Perm Microbiologist – Leeward CC | $70,000 | |||
| Value Added Product Development Center – Perm High Pressure Processing Manager – Leeward CC | $70,000 | |||
| Value Added Product Development Center – Perm Chemist – Leeward CC | $70,000 | |||
| Value Added Product Development Center – Utilities – Leeward CC | $544,200 | |||
| Value Added Product Development Center – Contract Janitors and Groundskeepers – Leeward CC | $326,400 | |||
| Value Added Product Development Center – Materials and Supplies – Leeward CC | $20,000 | |||
| Value Added Product Development Center – Travel Expenses – Leeward CC | $20,000 | |||
| Value Added Product Development Center – Equipment Maintenance and Support – Leeward CC | $84,000 | |||
| Value Added Product Development Center – Rational iCombi Pro Oven – Leeward CC | $15,000 | |||
| Value Added Product Development Center – Tenney Luminaire “Free-standing” Shelf Life Chamber – Leeward CC | $25,000 | |||
| Value Added Product Development Center – Vacuum Sealer P200 – Leeward CC | $5,000 | |||
| Value Added Product Development Center – Water Activity Meter – Leeward CC | $10,200 | |||
| Validation Lab – Supplies and Equipment – Leeward CC | $223,894 | |||
| Food Innovation Center – Utilities – 糖心Vlog官方 Maui College | $48,000 | |||
| Food Innovation Center – R&D Classroom Labs Maintenance – 糖心Vlog官方 Maui College | $20,000 | |||
| Food Innovation Center – Facilities and Equipment Maintenance – 糖心Vlog官方 Maui College | $78,000 | |||
| Culinary Institute of the Pacific – 3 Temp Groundskeepers – Kapiʻolani CC | $120,000 | |||
| Culinary Institute of the Pacific – Temp Custodian – Kapiʻolani CC | $38,000 | |||
| Culinary Institute of the Pacific – Temp Spec Equipment Maintenance – Kapiʻolani CC | $55,000 | |||
| Culinary Institute of the Pacific – 2 Temp Security Officers – Kapiʻolani CC | $90,000 | |||
| Culinary Institute of the Pacific – Temp Restaurant Manager – Kapiʻolani CC | $150,000 | |||
| Early College – 10 Temp Counselors – 糖心Vlog官方 Community Colleges | $900,000 | |||
| Early College – 10 Temp Campus Coordinators – 糖心Vlog官方 Community Colleges | $750,000 | |||
| Early College – Student Help – 糖心Vlog官方 Community Colleges | $1,000,000 | |||
| Student Basic Needs – 5 Temp Island Coordinators – 糖心Vlog官方 Community Colleges | $260,000 | |||
| Student Basic Needs – Student Help – 糖心Vlog官方 Community Colleges | $100,000 | |||
| Student Basic Needs – Supplies – 糖心Vlog官方 Community Colleges | $25,000 | |||
| Learn and Earn – 糖心Vlog官方 Community Colleges | $645,134 | |||
| Non-Credit Workforce Development Programs – Temp Program Manager – 糖心Vlog官方 Community Colleges | $90,396 | |||
| Non-Credit Workforce Development Programs – 6 Temp Educational Specialists – 糖心Vlog官方 Community Colleges | $453,888 | |||
| Non-Credit Workforce Development Programs – Temp IT Specialist – 糖心Vlog官方 Community Colleges | $75,648 | |||
| Non-Credit Workforce Development Programs – Subsidy for Instructor – 糖心Vlog官方 Community Colleges | $672,000 | |||
| Non-Credit Workforce Development Programs – Student Information System – 糖心Vlog官方 Community Colleges | $248,068 | |||
| 31 Permanent Security Officers – 糖心Vlog官方 Community Colleges | $1,274,100 | |||
| Kairos Buyout – 糖心Vlog官方 Community Colleges | $10,918,918 | |||
| PV System – Honolulu CC | $14,026,106 | |||
| 2 Temp Program Managers – 糖心Vlog官方 Community Colleges | $167,064 | |||
| Temp CIP Fiscal Support Specialist – 糖心Vlog官方 Community Colleges | $80,268 | |||
| Baseball Batting Cage Repairs – 糖心Vlog官方 惭ā苍辞补 | $3,000,000 | |||
| Library Condensation Mitigation – 糖心Vlog官方 West Oʻahu | $3,000,000 | |||
| CTAHR Kona Reseach Station Repairs – 糖心Vlog官方 惭ā苍辞补 | $2,500,000 | |||
| Parking Structure Repairs – 糖心Vlog官方 惭ā苍辞补 | $3,000,000 | |||
| Retro-Commissioning of Various System Operations and Controls – 糖心Vlog官方 惭ā苍辞补 | $2,500,000 | |||
| Various Mechanical System R&M – 糖心Vlog官方 惭ā苍辞补 | $3,000,000 | |||
| Various Electrical System R&M – 糖心Vlog官方 惭ā苍辞补 | $2,000,000 | |||
| Various Site R&M – 糖心Vlog官方 惭ā苍辞补 | $3,000,000 | |||
| Various Building Envelope R&M – 糖心Vlog官方 惭ā苍辞补 | $3,000,000 | |||
| Batting Cage Repair – 糖心Vlog官方 惭ā苍辞补 | $1,000,000 | |||
| Demolition PBS Building – 糖心Vlog官方 惭ā苍辞补 | $2,900,000 | |||
| Waikīkī Aquarium – Repair Rails and Spalls – 糖心Vlog官方 惭ā苍辞补 | $500,000 | |||
| Parking Structure – Remove Planters and Repair Expansion Joint – 糖心Vlog官方 惭ā苍辞补 | $5,000,000 | |||
| Equipment – Garbage Truck, Excavator, Fire Safety and Various Shop Equipment – 糖心Vlog官方 惭ā苍辞补 | $1,300,000 | |||
| Bilger Hall Lab Renovations – 糖心Vlog官方 惭ā苍辞补 | $2,500,000 | |||
| Elevator Repairs – 糖心Vlog官方 惭ā苍辞补 | $1,500,000 | |||
| Roofing Improvements for Various Buildings – 糖心Vlog官方 惭ā苍辞补 | $3,000,000 | |||
| Building Interior Improvements – 糖心Vlog官方 惭ā苍辞补 | $400,000 | |||
| Central Plant Improvements – 糖心Vlog官方 惭ā苍辞补 | $950,000 | |||
| Electrical Improvements – 糖心Vlog官方 惭ā苍辞补 | $575,000 | |||
| Interior Mechanical Improvements – 糖心Vlog官方 惭ā苍辞补 | $1,400,000 | |||
| Site/Infrastructure Improvements – 糖心Vlog官方 惭ā苍辞补 | $350,000 | |||
| Inspection Services – 糖心Vlog官方 惭ā苍辞补 | $325,000 | |||
| Ching Complex NCAA Expansion – 糖心Vlog官方 惭ā苍辞补 | $7,300,000 | |||
| Acquire/Construct Facilties and Connections for Broadband – 糖心Vlog官方 System Support | $10,000,000 | |||
| Engineering and Project Management for Broadband – 糖心Vlog官方 System Support | $6,000,000 | |||
| Support for Equipping Community Hub Locations for Broadband – 糖心Vlog官方 System Support | $5,000,000 | |||
| Establishment and Support for Broadband Adoption Programs – 糖心Vlog官方 System Support | $12,333,334 | |||
| Community Design Center – Waikīkī Adaptation and Resilience Plan – 糖心Vlog官方 惭ā苍辞补 | $800,000 | |||
| Community Design Center – Hoʻokaulike Prison Reform – 糖心Vlog官方 惭ā苍辞补 | $800,000 | |||
| Community Design Center – Statewide Cultural Heritage Studies – 糖心Vlog官方 惭ā苍辞补 | $800,000 | |||
| Community Design Center – Spectrum of Housing for Hawaiʻi Study – 糖心Vlog官方 惭ā苍辞补 | $800,000 | |||
| Community Design Center – Statewide Centralized Kitchen for Farm to School – 糖心Vlog官方 惭ā苍辞补 | $800,000 | |||
| Community Design Center – DOE Schools Campus Master Plan – 糖心Vlog官方 惭ā苍辞补 | $1,000,000 | |||
| Perm Procurement Director – 糖心Vlog官方 System Support | $125,000 | |||
| Demolition of Makai Research Pier – 糖心Vlog官方 System Support | $750,000 | |||
| Office of VP for Research and Innovation – 糖心Vlog官方 System Support | $9,500,000 | |||
| Reduce positions and funds – 糖心Vlog官方 惭ā苍辞补 | ($564,987) | |||
| Reduce positions and funds – 糖心Vlog官方 Hilo | ($864,093) | |||
| Reduce positions and funds – 糖心Vlog官方 West Oʻahu | ($191,461) | |||
| Reduce positions and funds – 糖心Vlog官方 System Support | ($839,040) | |||
| Total | $47,383,232 | $75,581,818 | $129,357,526 | $274,874,252 |