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Yahoo
4 days ago
- Business
- Yahoo
Honolulu City Council adopts $5.19B budget package
Two late votes by the Hono lulu City Council Wednesday evening finalized approval of a $5.19 billion budget package for the city's 2026 fiscal year, which begins July 1. The Council unanimously adopted a $3.91 billion executive operating budget, which in general will fund city salaries, police and fire services and street and parks maintenance. The panel also fully passed a $1.28 billion capital improvement program budget meant to pay for infrastructure improvements. The Council-approved budget is a 10.4 % increase over Honolulu's current $4.7 billion budget, which expires June 30. Mayor Rick Blangiardi has within 10 days to sign the budget bills into law. The latest budget includes $1.5 million toward new ambulances and six full-time equivalent positions to improve emergency response times on Oahu, particularly in Maunawili, Ko Olina, and Koolaupoko. Council additions also include $500, 000 in traffic safety upgrades near school zones, and $400, 000 in community policing support for all eight Honolulu Police Department districts, among other funding. And under the finalized CIP budget, Council member Andria Tupola successfully added $1.7 million to pay for the long-awaited improvements to an unfinished Waianae Police Station at 85-939 Farrington Highway. 'So we can finish the project, ' she added. But of note on the Council's latest budget vote was the hours-long delay toward its approval. Following back-and-forth discussions inside Honolulu Hale's Council Chambers Wednesday, the panel took a meeting recess after 5 p.m. The Council's final votes cast came after 9 p.m., in a meeting that began over 12 hours earlier. 'The extended recesses were required to carefully review and reconcile the Council member's changes in the draft legislation on the floor, ' a Council spokesperson told the Honolulu Star-Advertiser Thursday. On Wednesday, changes arose after Council Chair Tommy Waters' introduced a new floor draft of Bill 22—the executive operating budget—that morning. In that bill, Waters looked to redirect up to $19.1 million in previously appropriated but unused, or 'lapsed, ' city departmental funds to bolster the city's sewer fund, as a way to defray the cost of anticipated multiyear sewer fee rate increases expected to start July 1. 'We have established a provisional account with the general fund to allow the sewer fund to access it as a contingency when needed, ' Waters said. 'If the funds go unused for sewer activities they will lapse back into the general fund.' But city staff balked. 'We were kind of confused and surprised this morning when we saw the posted (floor draft ) by yourself, Chair Waters, ' city Department of Budget and Fiscal Services Director Andy Kawano said at the meeting. He added, 'It doesn't make sense to take funding out of departments for salaries and current expenses and set aside in a provisional for sewer activities when we, in fact, should not use it.' Kawano stated such an action could harm the city's AA + bond rating—the city's creditworthiness that impacts its ability to do bond financing—as the city tackles federally mandated, multibillion-dollar upgrades to its sewer treatment infrastructure and related utilities. Waters' floor draft—opposed by city staffers and questioned by Council members—later evaporated. Waters' attempt to add general funds mirrored his introduction of Bill 43 last month—a measure which was ultimately postponed during a recent meeting of the Council's Executive Management committee. On May 5, Waters advanced Bill 43, meant to redirect a portion of the 3 % visitor-generated Oahu transient accommodations tax, which in part is earmarked for Honolulu's rail project, to the city's sewer fund. But the chief critic of Waters' measure—BFS Director Kawano—asserted such an action was not a feasible option for the city to pursue. 'This measure will negatively impact the city's general fund and deviate from the intended purpose of the TAT, which is to provide general fund capacity to fund city services ; mitigate the strain visitors place on public facilities, emergency serv ices, and natural resources ; and provide additional funding for rail (i.e., 'Skyline') construction, ' Kawano wrote in a May 12 letter to Council. In related business Wednesday, the Council on a split vote adopted its version of city-initiated Bill 60, which deals with anticipated increases to the city's sewer fee rates. As part of the budget process, the Blangiardi administration proposed a 10-year, 115 % sewer fee rate increase that's expected to begin this summer. City officials say sewer fee hikes are necessary to support the city Department of Environmental Services' ongoing wastewater operations and maintenance efforts, as well as a $10.1 billion capital improvement program for Oahu's wastewater collection and treatment system that's planned through 2040. And they assert the work includes a $2.5 billion upgrade to the Sand Island Wastewater Treatment Plant as required under a 2010 federal consent decree. On Wednesday, the Council voted 5-4—with Esther Kia 'aina, Scott Nishimoto, Tupola and Waters dissenting—on Budget Committee Chair Tyler Dos Santos-Tam's draft of Bill 60, which shaves the city's decade-long span for increased rates down to about six years. That plan would start Jan. 1, 2026, and run through 2031. As approved, Bill 60's sewer fee increases for a household that uses about 6, 000 gallons of water per month—deemed 50 % of all single-family households in Honolulu—equates to a 6 % increase in sewer fees in fiscal year 2026, 7.5 % in fiscal year 2027, 8.5 % in fiscal year 2028, followed by 9 % over the remaining three fiscal years. After the year 2031, sewer rates would increase 3 % annually. As proposed, a household that uses 6, 000 gallons a month is currently charged $99.77 on average. By year 2031, that average bill would rise to $160.85, a more than 61 % increase, ENV data indicates. Under Dos Santos-Tam's Bill 60, ENV will have authority to set up a program called Customer Assistance for Residential Environmental Services, or CARES, to help with 'affordability and equity ' of increased sewer fee rates. Sewer customers who qualify based on household income of less than 80 % area median income will be eligible for a $20 to $25 credit on their monthly base fee. The program will be funded at $10 million per year. Customers will have to apply for the program to prove eligibility and then be re-verified every six months, ENV states. Still, not all were happy with Bill 60's approval. 'Really listen to your constituents because we're going to feel the effects, ' Oahu resident Tara Rojas said with disappointment, during remote public testimony to the Council. 'And this is only sewer (fees ), not even including anything else.'
Yahoo
5 days ago
- Business
- Yahoo
Honolulu City Council adopts HART's $968M budget
The Hono lulu Authority for Rapid Transportation's $968.3 million budget package will roll for fiscal year 2026. The City Council on Wednesday voted 8-0, with Council member Augie Tulba absent for that portion of the meeting, to approve HART's $174.7 million operating budget. On a subsequent vote, the panel voted unanimously on HART's capital budget, which features a $793.6 million capital spending plan, above the current $574 million—a nearly 38.3 % increase. HART's budgets, expected to take effect July 1 if signed by Mayor Rick Blangiardi later this month, show marked increases to debt service on the project's loans as well as increased labor costs for the over-$10 billion Skyline construction. The rail agency previously indicated other higher costs as well. HART officials indicated that due to the awarded contract of $1.66 billion for City Center Guideway and Stations, or CCGS, meant to take the rail line to Kakaako by 2031, the project's capital budget is expected to rise from $482.4 million in the current fiscal year to more than $526.9 million for 2026—a 9.2 % increase. In August, HART awarded the CCGS contract to Los Angeles-based Tutor Perini Corp. to design and build Skyline's last 3-mile segment to Halekauwila Street. But rail staffers say because of the large contract—about $360 million above original estimates—certain rail-related projects might need to be temporarily deferred. Meanwhile, the Council's anticipated vote on the mayor's proposed $5.14 billion budget package did not immediately occur. Following daylong back-and-forth discussions, the Council took a meeting recess after 5 p.m. Wednesday. As of press time, no formal vote had been taken after disagreements erupted between the Council and city staff over budgetary issues. Those issues included Council Chair Tommy Waters' floor draft of Bill 22—the executive operating budget—which looked to redirect previously appropriated but unused, or 'lapsed, ' city departmental funds to bolster the city's sewer fund, as a way to defray the cost of anticipated multiyear sewer fee rate increases expected to start July 1. 'We have reduced approximately 33 % of inactive vacancies balances across specific departments, ' Waters said of his plan. City staff balked, however. Namely, city Department of Budget and Fiscal Services Director Andy Kawano disagreed with Waters' plan, stating such an action could harm the city's AA + bond rating, particularly as the city tackles federally mandated, multibillion dollar upgrades to its sewer treatment infrastructure and related utilities. During public testimony earlier that day, Laie resident Choon James was critical of the Council's latest budget approval for rail. 'I feel like everyone knows that the rail is the white elephant in the room, ' she said. 'The city is now trying to uncover every (nook ) and cranny trying to raise revenue for core services.' She added 'this is not fiscally sustainable in the long run for ordinary people.' 'And I wish to have this testimony for all of the finance bills there, ' James said. 'Unless we stop tax and spend, tax and spend and do some assessments here and there, local people who do not have a lot of money are going to get into so much trouble and price out of Hawaii.'
Yahoo
17-04-2025
- Business
- Yahoo
Matthew McConaughey-backed film incentive bill gets Texas Senate approval
A legislative incentives proposal with a star-studded cast of supporters, aimed at pumping billions of dollars into a Texas movie-making fund, passed the state Senate on Wednesday, potentially setting the stage for the Lone Star State to become the next big filmmaking hub. Senate Bill 22 by Sen. Joan Huffman, R-Houston, would create the Texas Moving Image Industry Incentive Fund, infusing $500 million every two years for a decade into a program that lawmakers hope will spur economic development in the state and promote the spread of "Texas values" through film and television. The upper chamber advanced the bill to the House by a 23-8 vote. The new film incentive fund would bolster an existing program that provides cash grants for films and TV shows that primarily shoot in Texas and hire a significant portion of their crews from within the state. Proponents say the new fund would position Texas to compete with other film-friendly states like Georgia and neighboring New Mexico, potentially keeping local talent from leaving for more favorable job markets. As per the proposal, films and TV shows that spend at least $250,000 in the state would be eligible for a grant worth up to 5% of the project's spending. Projects spending $1 million or more could get up to 10%, and productions spending more than $1.5 million could get a 25% reimbursement. Smaller grant amounts would be available for reality shows, commercials and educational videos. Additional bonus money would be available to faith-based productions or "Texas heritage projects," as determined by program administrators. Projects that shoot in rural areas, hire veterans or tackle post-production in Texas would also be eligible for a boost. The state's Music, Film, Television, and Multimedia Office would have wide discretion to administer the grants and determine what content receives a reimbursement. The office "shall consider general standards of decency and respect for the diverse beliefs and values of the citizens of Texas" when evaluating projects, according to the bill, and can deny an application for content it deems inappropriate or that "portrays Texas or Texans in a negative fashion." The prospect of expanding film incentives in the state has garnered bipartisan support and has been popular with prominent Texas natives like actors Matthew McConaughey and Woody Harrelson, who both appeared at a committee hearing on SB 22 last month. More: Woody Harrelson, Matthew McConaughey ask Texas Senate panel to support new film incentives Huffman, McConaughey and other proponents of the bill have argued that film incentives provide a 469% return on investment, bolstering local economies where productions are made — especially when they hire "below-the-line" crew members from Texas, as the program would require. "If those are Texas workers, getting paid money in Texas, staying in Texas, then they go out and they rent an apartment, or they're going to the dry cleaners themselves, and they're buying groceries. All of this adds to the Texas economy," Huffman said during debate on the bill Wednesday. Critics of the proposal, such as Rep. Brian Harrison, R-Midlothian, have characterized film incentives as wasteful government spending, calling instead for the money to be used for property tax cuts. Others, including Republican Sens. Donna Campbell of New Braunfels and Paul Bettencourt of Houston, have argued the bill doesn't go far enough to prevent tax dollars from being used on projects with obscenity or foul language. A floor amendment that added an additional boost for faith-based productions — like "The Chosen," a series about Jesus which is filmed near Midlothian — got majority support Wednesday, though Dallas Democratic Sen. Nathan Johnson criticized the proposal as "not a proper place for government." That amendment, and the bill, received Campbell's backing. "I think this bill is easy to support, because everything that it brings is jobs, dollars that add to our economy, sales tax dollars to help us decrease property taxes, as well as take ownership of language and start putting some parameters on what producers and writers can do," Campbell said. Lt. Gov. Dan Patrick, who heads the upper chamber, has been a staunch advocate of film incentives and on Wednesday applauded the Senate's approval of SB 22. "The production incentive is an opportunity for us to export Texas faith and family values to the rest of America and the world while growing our economy and enriching Texas workers." This article originally appeared on Austin American-Statesman: Texas Senate OKs film incentives backed by McConaughey, Woody Harrelson
