HONOLULU – Mayor Rick Blangiardi on Monday submitted to the Honolulu City Council a fiscally disciplined Fiscal Year 2027 (FY 2027) budget that is $133.6 million less than the adopted FY 2026 budget, reflecting the administration’s commitment to smart, responsible spending during a time of economic uncertainty.
The FY 2027 proposal includes:
- A $3.97 billion Operating budget, which represents an increase of just 0.98% from FY 2026 — driven primarily by pay and benefit increases from collective bargaining agreements; and
- A $1.11 billion Capital Improvement Program (CIP) budget, which amounts to $172.1 million less than the FY 2026 adopted CIP budget — a 13.4% reduction.
Honolulu residents continue to navigate high living expenses and affordability challenges, with the University of Hawai′i Economic Research Organization (UHERO) forecasting real income growth of only about 1% this year. Consequently, Mayor Blangiardi’s balanced approach focuses on efficiency, accountability and strategic investment to deliver core services without expanding the size or cost of government.
By prudently reallocating a percentage of budgeted vacant position dollars and restricting current expenses across the City, the proposed increased to the FY 2027 Operating budget is just $38.4 million more than the adopted FY 2026 budget despite collective bargaining agreement increases in FY 2027 of more than $50 million.
“Given our challenging economic outlook, we are committed to disciplined spending of taxpayer dollars while continuing to make strategic investments that move O‘ahu forward,” said Mayor Rick Blangiardi. “Our focus remains on solving problems, improving how City government operates, and delivering reliable services our community expects and deserves.”
Here is a closer look at what is prioritized in the proposed FY 2027 budget:
Housing and Homelessness
- $100 million for affordable housing mixed-use development
- $26.8 million for low-income housing renovation and development
- More than $30 million for homeless services and related public health initiatives
Infrastructure and Utilities
- $85.3 million for upgrades at Honouliuli and Sand Island wastewater treatment plants
- $40 million for Salt Lake Boulevard Widening
- Continued investment in wastewater systems, solid waste facilities, and climate adaptation projects
Transportation and Public Safety
- $674.1 million for police, fire, EMS, and ocean safety operations
- $490 million for TheBus, TheHandi-Van, and Skyline operations
- $34.7 million for new buses and TheHandi-Van vehicles
Here is more information on the source of funds:
- $1.79 billion in real property taxes
- $515 million in sewer service charges
- $106.7 million in O‘ahu Transient Accommodations Tax revenue
The largest operating cost categories include:
- Employee benefits and required obligations: $886.6 million (22.3%)
- Debt service: $725.6 million (18.3%)
The 2027 Fiscal Year Operating and Capital Improvement Project are available at https://hnldoc.ehawaii.gov/hnldoc under “Bills.” Supporting documents will be posted under “Communications.”
The budget documents will also be available at the following Google Drive link until they are posted on the City Council website: https://www.honolulucitycouncil.org/.
—PAU—
