What’s the Annual Cost to Manage Maui County Government: $1.512 Billion
Really? Does it really cost over a billion dollars annually to operate Maui County government? The County administration thinks so! Mayor Richard T. Bissen, Jr. sent his proposed Fiscal Year 2026 budget to the County Council on March 25, 2025. The proposed county budget for the coming year is $1.512 billion, which, according to the Mayor, places special emphasis on kama‘āina housing and continued wildfire recovery. The Council’s budget committee will have over two months to deliberate on the proposed FY 2025-26 budget. As we know, the most pressing and urgent need of Maui’s hard-working families is housing. It is a crisis needing the administration’s urgent attention and response before many of our ‘ohana leave their island home.
According to Mayor Bissen’s budget message to the Council, attainable housing prior to the August 8th, 2023, wildfires, State and County reports, studies after studies, and analyses indicated Maui County “needed to produce approximately 10,404 housing units” between 2019 and 2025 to meet the needs of the Maui County workforce. Without question, Maui County’s housing shortage was exacerbated after August 8th, when approximately 2,200 properties were destroyed by wildfires. Mayor Bissen also mentioned in his budget message that beginning in FY 2022, the County began appropriating a minimum of 3 percent of the annual revenue from real property taxes to address Maui County’s affordable housing crisis. In FY 2024, the administration contributed 8 percent of certified real property taxes, or approximately $43 million. According to Mayor Bissen, the County continues to take actions to make strides towards increasing housing inventory. For FY 2025–26, the administration is proposing a contribution of 8 percent of certified real property taxes or approximately $46.9 million. Does the proposed budget for housing reflect the urgency to meet the challenge?
I appreciate the effort of appropriating this amount for attainable housing in FY 2025–26, which is a step forward from past appropriations. But I know it will cost hundreds of millions of dollars to make a significant dent in addressing the housing crisis in Maui. It is worth noting although there are currently several proposed solutions to address the current housing shortage, a long-term solution ultimately requires new homes to be built. Will the County embark on developing attainable homes rather than relying and waiting solely on private developers to build them? It is quite obvious that private developers are not building affordable homes at an accelerated rate because of the risk, and there is no fair return on their investments due to the costly and lengthy permitting approval process. Unless the county provides substantial subsidies and removes institutional barriers to building affordable homes—it will take a long time, if ever, to see attainable homes for our hard-working families on Maui.
According to Mayor Bissen, the budget “serves as a blueprint for Maui County’s future, grounded in kahua (foundation) and kuleana (responsibility).” In the Mayor’s proposed budget message, he further notes, With the support of the Maui County Council, and a shared commitment to our community, we move forward with unity, with purpose, and with aloha, dedicated to building a stronger Maui Nui for generations to come.”
The Mayor’s proposed FY 2025-26 budget focuses on three core priorities:
•Kama‘āina housing: According to the mayor, twelve housing projects, totaling 843 units, are proposed for funding in FY 2026. A new affordable housing project is planned for the island of Lāna‘i, with over 1200 more anticipated within the next two years.
• Recovery and well-being: FY 2026 proposed budget includes allocation for park enhancements, ADA improvements and resurfacing basketball and tennis courts, funds for expanded transportation access, and exploring a county-owned ferry system; support county-wide economic growth and resilience, investing in diversification, business development, technology, sports and events, and workforce initiatives.
• Cultural and natural resources: supporting reef restoration and stormwater management. FY 2026 proposed budget also includes grants for farming, food production, and animal management.
These above-mentioned priorities outlined in Mayor Bissen’s proposed budget for FY 2025–2026 are very ambitious initiatives worthy of our wholehearted support, especially the need to develop more affordable homes for our residents who have been waiting for the opportunity to own a home here on the island. Hope it happens before our kama‘āina ‘ohana loses hope of ever owning a home.
The Maui County Council Budget and Finance Committee will be deliberating the proposed FY 2025–2026 budget in the next two months—and I encourage everyone to voice their input and concerns to ensure the Council will address them with urgency and commitment. Our collective voice will make a huge impact as the Council deliberates on the proposed budget. You may contact the Office of Council Services for more information at (808) 270-7838.
