Budget committee proposes $5M reduction to emergency fund amidst financial adjustments

April 27, 2025 | Maui County, Hawaii


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Budget committee proposes $5M reduction to emergency fund amidst financial adjustments
The Maui County Budget, Finance, and Economic Development Committee reconvened on April 27, 2025, to continue discussions on the budget for the fiscal years 2025-2027. The meeting, which resumed after a break, focused on various financial adjustments and proposals aimed at addressing the county's budgetary needs.

The session began with a review of the highway fund, where a supplemental transfer was discussed, potentially reducing the fund by an additional million dollars. The current budget stood at approximately $59.8 million, with members expressing optimism about reaching their financial goals.

Following a brief recess, the committee resumed discussions on expansion positions within the budget. A proposal was made to fund these positions for four months instead of eight, which would result in a cut of about $1 million. The committee voted on this motion, which passed with nine votes in favor.

Another significant topic was the emergency fund, originally set at $83 million. A motion was proposed to reduce this fund by $10 million, but after discussions, the amount was amended to a $5 million reduction. This motion also passed with unanimous support.

Additionally, a member proposed a correction to the anticipated revenue for a special purpose revenue fund, which had been impacted by the 2023 wildfires. The committee agreed to amend the anticipated revenue to zero for the upcoming fiscal year, reflecting the current financial situation accurately.

As the meeting progressed, the committee calculated the total cuts needed to balance the budget, which amounted to approximately $29 million. Members expressed confidence that this target was achievable, with discussions indicating a collaborative effort to finalize the budget.

In conclusion, the committee made significant strides in addressing the budget for the upcoming fiscal years, with key decisions made regarding funding allocations and adjustments to emergency reserves. The next steps will involve further calculations and discussions to ensure the budget aligns with the county's financial goals.

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