Hawaii Gov. Green proposes $425M recovery budget for Maui after devastating wildfires

 HI Democrat is urging millions of people to reduce wildfire risk across the state

Hawaii Governor Josh Green said Monday he is requesting $425 million from lawmakers during the next fiscal year to help Maui recover from the August wildfires — and reduce the risk of wildfires across the state. Millions of dollars in reductions are being requested.

The proposed budget is Green's first since fast-moving wildfires killed at least 100 people on Aug. 8 and destroyed Maui's historic downtown Lahaina.

"We're mindful of the need to take care of people who have lost everything in Maui. We're going to make them whole. We're going to help them survive," Green said at a news conference. "

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The fire displaced approximately 12,000 people, half of whom are still living in hotels due to the severe housing shortage on the island.

Wildfires have long been relatively rare in Hawaii, which is known for its lush landscape of rainforests and waterfalls. But climate change has increased the frequency and intensity of drought, increasing the risk of wildfires on the islands.

The federal government is covering most of Lahaina's cleanup and emergency housing costs. Green said that while recovery from the fires will cost more than $5 billion, the state's share will be about $500 million.

The Governor's proposals are for the financial year starting July 1. Lawmakers will consider the proposals when drafting the state budget during the legislative session that begins on Jan. 17.

Proposals include:

1. $200 million for anticipated Maui insurance claim payouts

2. $186 million in other recovery costs as they arise

3. $10 million for fire and emergency response equipment for the state Department of Land and Natural Resources, which is responsible for state forests, as well as $7.4 million for the same department for fire response and prevention efforts.

4. 20 positions at Hawaii Emergency Management Agency to work on fire incidents, fire assessments and wildfire cases

5. $33 million to repair and reconstruct state highways in Lahaina, mostly from federal funds

In addition to fire response, Green proposed spending $22 million on housing for older adults in Honolulu, $10 million for Hawaii Public Housing Authority building improvements, and $30 million in tax breaks for families with children in preschool.

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The governor said he made no cuts to the state's $1.5 billion Rainy Day Fund. He said this fund, as well as at least a $500 million surplus expected at the end of the fiscal year, would provide relief to the state. This gives the state a higher credit rating and allows it to issue bonds at lower interest rates, Green said.

The tax revenue outlook for Hawaii is not as bleak as initially feared – although after the fires, tourism fell sharply on Maui, one of the state's largest hubs for visitors.

Carl Bonham, executive director of the University of Hawaii Economic Research Organization, said last week that the state has had strong tax revenue growth in recent months, in large part due to the income tax. Excise tax and temporary accommodation tax revenues – both of which are heavily influenced by the number of travelers to the state – have been weaker than expected, he said.

The State Revenue Council, which forecasts tax revenue for the governor and Legislature, is scheduled to meet Jan. 8 to update its forecast.