On this week’s episode of the One O‘ahu Podcast, Mayor Rick Blangiardi and Budget and Fiscal Services Director Andy Kawano join host Brandi Higa to discuss the Fiscal Year 2026 budget proposals submitted to the Honolulu City Council, key infrastructure and public service projects included in this year’s budget, and how to have a say before the final budget is passed.
Fiscal Year 2026 Proposed Budget
Mayor Rick Blangiardi on Feb. 28, 2025, submitted to the Honolulu City Council his proposed $3.93 billion Operating and $1.21 billion Capital Improvement Program (CIP) budgets for Fiscal Year 2026. The budget proposals focus on driving execution of City priorities through leadership, innovation, fiscally responsible spending and cross-sector collaboration, without an increase in property tax rates.
“What I like best about it is the fact that it continues to address our priorities, and we have it balanced,” said Mayor Rick Blangiardi regarding this year’s proposed budget. He goes on to say, “From the standpoint of having the proper resources that allow us to execute – we say coming into the second term, it’s about execution – and there’s nothing in there that gets in our way from executing.”
Spending on operational costs for the City’s public safety and public health agencies (the Honolulu Police, Honolulu Fire, Honolulu Emergency Services, and Honolulu Ocean Safety departments) represents roughly 17% of the proposed Operating budget, at $657.2 million. Allocated funding for TheBus, TheHandi-Van, and Skyline mass transit programs comes in at $476.7 million, which is approximately 12% of the proposed operating budget.
Key Projects
The proposed CIP budget is allocated across key infrastructure and public service projects, including: $533.7 million for refuse and sewer projects mandated by the 2010 Global Consent Decree, $207.0 million for bikeways, highways, streets, bridges, storm drainage, and street lighting, and $143.8 million for affordable housing and homeless service facilities, just to name a few.
“The largest area that we’re funding is sanitation,” said Budget Director Kawano. “Most of it is going to the 2010 Consent Decree projects and those projects include Sand Island and Honouliuli.”
The proposed $1.21 billion Capital Improvement Project budget for FY 2026 is 15.8% more than the adopted $1.05 billion CIP budget for FY 2025.
Weigh-in
The 2026 fiscal year Operating and Capital Improvement Project budget bills are posted at https://hnldoc.ehawaii.gov/hnldoc under “Bills,” and the complete report and executive summary will be posted on the same site under “Communications.”
“They can share (their thoughts) at the (Honolulu City Council) committee meetings, it’s public,” explained Kawano. “They can share their thoughts and interests at that time. They can call their council member… and they can also send in written testimony.”
The major estimated resources to fund City programs and activities include $1.77 billion in real property tax revenue, $1.24 billion in estimated unreserved fund balances carryover from FY 2025, and $108.2 million in Oʻahu Transient Accommodations Tax revenue.
