{"id":140847,"date":"2021-05-06T09:59:37","date_gmt":"2021-05-06T19:59:37","guid":{"rendered":"https:\/\/www.hawaii.edu\/news\/?p=140847"},"modified":"2021-07-13T10:19:49","modified_gmt":"2021-07-13T20:19:49","slug":"2021-legislative-recap","status":"publish","type":"post","link":"https:\/\/www.hawaii.edu\/news\/2021\/05\/06\/2021-legislative-recap\/","title":{"rendered":"2021 legislative recap: UH<\/abbr>\u02bbs overall budget cut by almost 10%"},"content":{"rendered":"Reading time: <\/span> 6<\/span> minutes<\/span><\/span>

\"Hawaii<\/p>\n

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Kalbert Young<\/figcaption><\/figure>\n

Kalbert Young<\/strong>, UH<\/abbr> vice president for budget and finance and chief financial officer, shares his analysis of the Â鶹´«Ã½<\/span> State Legislature 2021 session.<\/em><\/p>\n

The 2021 Legislature adjourned on April 29, after passing more than 260 bills, which the governor will now consider for enactment. Some of these bills will impact the University of Â鶹´«Ã½<\/span> either directly or indirectly.<\/p>\n

This was the first year of the Legislature\u2019s biennium (two-year cycle). Since lingering tax revenue impacts from the ongoing COVID-19 pandemic are still a major factor on the state budget, and federal stimulus aid has recently been enacted to help the state, the budget bill was arguably the most significant measure of the session. The following will highlight components of the budget as it relates to UH<\/abbr> and identify some possible funding impacts to our campuses. In addition to the budget overview, I will also highlight a few other significant measures that passed the Legislature this session.<\/p>\n

Operating budget<\/h2>\n

HB 200 CD<\/abbr>1, the biennium budget bill, passed the Legislature and has been transmitted to the governor for his consideration. The table below compares the UH<\/abbr> items funded by the legislature and what was requested by the Board of Regents.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Campus<\/th>\nDescription<\/th>\n<\/tr>\n
Board<\/th>\nCD1<\/th>\n<\/tr>\n
FY22<\/abbr><\/th>\nFY23<\/th>\nFY22<\/abbr><\/th>\nFY23<\/th>\n<\/tr>\n<\/thead>\n
UH<\/abbr> M\u0101noa<\/td>\nUH<\/abbr> M\u0101noa Athletics<\/td>\n$3,600,000<\/td>\n$3,600,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Hilo<\/td>\nUH<\/abbr> Hilo Athletics<\/td>\n$400,000<\/td>\n$400,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges <\/td>\nÂ鶹´«Ã½<\/span> Promise Program<\/td>\n$700,000<\/td>\n$700,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa <\/td>\nAdd (3) Positions and Funds for HIMB<\/abbr><\/td>\n <\/td>\n <\/td>\n$197,228<\/td>\n$197,228<\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa <\/td>\nReduce (1) filled position and funds<\/td>\n <\/td>\n <\/td>\n($343,800)<\/td>\n($343,800)<\/td>\n<\/tr>\n
UH<\/abbr> Hilo<\/td>\nAdd Funds for Athletics<\/td>\n <\/td>\n <\/td>\n$105,895 <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa <\/td>\nTransfer funds to new UH<\/abbr> Cancer Center Program ID<\/abbr><\/td>\n <\/td>\n <\/td>\n($3,098,055)<\/td>\n($3,098,055)<\/td>\n<\/tr>\n
UH<\/abbr> Cancer Center (new)<\/td>\nTransfer-in from UH<\/abbr> M\u0101noa<\/td>\n <\/td>\n <\/td>\n$3,098,055<\/td>\n$3,098,055<\/td>\n<\/tr>\n
UH<\/abbr> West Oʻahu<\/span><\/td>\nAdd (2) Positions and Funds<\/td>\n <\/td>\n <\/td>\n$164,394<\/td>\n$164,394<\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nAdd (3) Positions and Funds<\/td>\n <\/td>\n <\/td>\n$160,000<\/td>\n$220,000<\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa<\/td>\nReduce Funds<\/td>\n <\/td>\n <\/td>\n($35,600,000)<\/td>\n($30,000,000)<\/td>\n<\/tr>\n
JABSOM<\/abbr><\/td>\nReduce Funds<\/td>\n <\/td>\n <\/td>\n($1,200,000)<\/td>\n($1,200,000)<\/td>\n<\/tr>\n
UH<\/abbr> Hilo<\/td>\nReduce Funds<\/td>\n <\/td>\n <\/td>\n($2,280,000)<\/td>\n($2,280,000)<\/td>\n<\/tr>\n
UH<\/abbr> West Oʻahu<\/span><\/td>\nReduce Funds<\/td>\n <\/td>\n <\/td>\n($1,080,000)<\/td>\n($1,080,000)<\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nReduce Funds<\/td>\n <\/td>\n <\/td>\n($4,600,000)<\/td>\n($4,600,000)<\/td>\n<\/tr>\n
UH<\/abbr> Systemwide Support<\/td>\nReduce Funds<\/td>\n <\/td>\n <\/td>\n($3,391,232)<\/td>\n($3,391,232)<\/td>\n<\/tr>\n
 <\/td>\nTotal<\/strong><\/td>\n$4,700,000<\/strong><\/td>\n$4,700,000<\/strong><\/td>\n($47,867,515)<\/strong><\/td>\n($42,313,410)<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

American Rescue Plan Act Add-ons<\/p>\n\n\n\n\n\n\n\n\n\n
Campus<\/th>\n Description <\/th>\n<\/tr>\n
Board<\/th>\nCD1<\/th>\n<\/tr>\n
FY22<\/abbr><\/th>\nFY23<\/th>\nFY22<\/abbr><\/th>\nFY23<\/th>\n<\/tr>\n<\/thead>\n
UH<\/abbr> M\u0101noa<\/td>\nAdd Funds for UHERO<\/abbr><\/td>\n <\/td>\n <\/td>\n$1,200,000 <\/td>\n <\/td>\n<\/tr>\n
Aquarium <\/td>\nAdd Funds for Waik\u012bk\u012b Aquarium<\/td>\n <\/td>\n <\/td>\n$1,000,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nAdd Funds for Â鶹´«Ã½<\/span> Promise<\/td>\n <\/td>\n <\/td>\n$1,300,000 <\/td>\n$1,300,000 <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

It is important to note that the Board of Regents budget request for $4.7 million per year was not for new funding, but to continue funding for currently operating programs at the university\u2014notably support for athletics programs at UH<\/abbr> M\u0101noa and UH<\/abbr> Hilo and funding for the Â鶹´«Ã½<\/span> Promise Program<\/a> at the community colleges.<\/p>\n

Instead of providing general fund additions, the Legislature reduced UH<\/abbr>\u2019s general fund budget by $47.9 million in the first year of the biennium and $42.3 million in the second year. (It should be noted that the Â鶹´«Ã½<\/span> Promise Program did receive support from federal funds appropriated to the state.) To put this reduction in perspective, these cuts are nearly 10% of UH<\/abbr>\u2019s general fund appropriations of approximately $500 million annually. At the start of 2021, all state departments were anticipating that funding was going to be a challenge. Some of that sentiment eased during the legislative session with the emergence of significant federal stimulus aid to the state. However, the end product of the budget passed by the Legislature does not reflect a balanced or thoughtful approach to the overall UH<\/abbr> budget.<\/p>\n

As is clearly evident, the budget passed by the Legislature demonstrates an approach that disproportionately reduces funding to the university. UH<\/abbr> M\u0101noa, by far, is the most severely impacted in the budget since it will have the largest amount of general funding reduction (-$35.6 million in FY<\/abbr>22), as well as the largest percentage reduction than any other campus—approximately -13.8% of their current budget. A relative comparison of all campuses within the UH<\/abbr> system shows that the UH<\/abbr> M\u0101noa general fund appropriation is approximately $210 million, or 42% of the total UH<\/abbr> general fund budget, while their $35 million reduction represents 74% of the total cut to UH<\/abbr>.<\/p>\n

The Legislature provided federal American Rescue Plan Act (ARPA<\/abbr>) funding to three specific areas for a total of $3.5 million in FY<\/abbr>22 and $1.3 million in FY<\/abbr>23. However, $1.3 million in ARPA<\/abbr> funding is to replace reductions of general funds for the Â鶹´«Ã½<\/span> Promise Program. Not included in the legislatively-appropriated budget are Higher Education Emergency Relief Funds (HEERF<\/abbr>) included as part of the three federal coronavirus response packages, and granted as federal assistance to campuses and student aid. Some HEERF<\/abbr> monies may have to be reallocated to supplant general fund reductions.<\/p>\n

Capital improvement projects<\/h2>\n

HB 200 CD<\/abbr>1 provided a moderate funding level for the UH<\/abbr> System to address capital improvement projects and deferred maintenance, which has been consistently a major historical area of concern for the university. The Legislature appropriated $230.4 million in FY<\/abbr>22 and $102.6 million in FY<\/abbr>23 in general obligation bonds for the following projects:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Campus<\/th>\nProject Title<\/th>\n<\/tr>\n
Board<\/th>\nCD1<\/th>\n<\/tr>\n
FY22<\/abbr><\/th>\nFY23<\/th>\nFY22<\/abbr><\/th>\nFY23<\/th>\n<\/tr>\n<\/thead>\n
UH<\/abbr> System<\/td>\nRenew, Improve and Modernize<\/td>\n$110,500,000<\/td>\n$110,500,000 <\/td>\n$51,800,000 <\/td>\n$47,640,000 <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nCapital Renewal and Deferred Maintenance<\/td>\n$25,000,000<\/td>\n$25,000,000<\/td>\n$25,000,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nMinor CIP<\/abbr><\/td>\n$25,000,000<\/td>\n$25,000,000<\/td>\n$15,000,000<\/td>\n$20,000,000<\/td>\n<\/tr>\n
UH<\/abbr> Hilo <\/td>\nRenew, Improve and Modernize<\/td>\n$24,000,000<\/td>\n$13,500,000<\/td>\n$1,300,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa <\/td>\nM\u0101noa Mini Master Plan Phase 2<\/td>\n$60,000,000<\/td>\n <\/td>\n$35,000,000<\/td>\n$35,000,000<\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nHonolulu CC<\/abbr> Technology Renovations<\/td>\n$15,000,000<\/td>\n <\/td>\n$15,000,000<\/td>\n <\/td>\n<\/tr>\n
Aquaria<\/td>\nWaik\u012bk\u012b Aquarium<\/td>\n$1,500,000<\/td>\n$9,000,000<\/td>\n$1,500,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nADA<\/abbr> Upgrades<\/td>\n$14,000,000<\/td>\n$14,000,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> West Oʻahu<\/span><\/td>\nRenew, Improve and Modernize<\/td>\n$3,000,000<\/td>\n$3,000,000<\/td>\n$3,500,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nWindward CC<\/abbr> Agripharmatech Bioprocessing Facility<\/td>\n$3,000,000<\/td>\n <\/td>\n$3,000,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa <\/td>\nCentral Admin Facility with Parking<\/td>\n$4,000,000<\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> West Oʻahu<\/span><\/td>\nPlanning Projects<\/td>\n$500,000<\/td>\n$500,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nKapiʻolani<\/span> CC<\/abbr>–Kokiʻo<\/span><\/td>\n$2,500,000<\/td>\n$30,000,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nUH<\/abbr> Maui College Vocational Tech<\/td>\n <\/td>\n$2,000,000<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa<\/td>\nCTAHR<\/abbr>–Waialeʻe<\/span> Research Station<\/td>\n <\/td>\n <\/td>\n$1,600,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Hilo<\/td>\nMaunakea Telescope Removal (H\u014dk\u016b Keʻa<\/span>)<\/td>\n <\/td>\n <\/td>\n$900,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nResource and Education Center<\/td>\n <\/td>\n <\/td>\n$42,500,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> System<\/td>\nMakai Research Pier<\/td>\n <\/td>\n <\/td>\n$5,550,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> M\u0101noa<\/td>\nLyon Arboretum<\/td>\n <\/td>\n <\/td>\n$1,200,000<\/td>\n <\/td>\n<\/tr>\n
UH<\/abbr> Community Colleges<\/td>\nProof of Concept for Maui Health System<\/td>\n <\/td>\n <\/td>\n$500,000<\/td>\n <\/td>\n<\/tr>\n
 <\/td>\nTotal<\/strong><\/td>\n$288,000,000<\/strong><\/td>\n$232,500,000<\/strong><\/td>\n$203,350,000<\/strong><\/td>\n$102,640,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Additional projects—either not General Obligation Bonds or not in UH<\/abbr><\/p>\n\n\n\n\n\n\n\n\n
Campus<\/th>\nProject Title<\/th>\n<\/tr>\n
Board<\/th>\nCD1<\/th>\n<\/tr>\n
FY22<\/abbr><\/th>\nFY23<\/th>\nFY22<\/abbr><\/th>\nFY23<\/th>\n<\/tr>\n<\/thead>\n
UH<\/abbr> Hilo<\/td>\nRenew, Improve and Modernize (American Rescue Plan Act Funds)<\/td>\n <\/td>\n <\/td>\n$8,700,000<\/td>\n <\/td>\n<\/tr>\n
 <\/td>\nWarehouses for Dept. of Agriculture<\/td>\n <\/td>\n <\/td>\n$28,000,000<\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Overall, the amount of capital funding support in the budget is decent and appreciation can be extended to the Legislature for its level of support. The funding should help to address some of the capital needs across the UH<\/abbr> System. The amount of work left is still substantial, and the level of funding is still short of addressing immediate reduction of UH<\/abbr>\u2019s deferred maintenance backlog.<\/p>\n

While we can be appreciative of the level of funding provided, there were also a few projects that were not requested by UH<\/abbr>, yet they were put into the university\u2019s budget. For example, $42.5 million has been provided to construct a Resource and Education Center, which was not requested by the Board, and it is unclear what this project entails. Additionally, $28.0 million was appropriated by the Legislature to the Department of Agriculture, but UH<\/abbr> is the “expending agency” for these funds. Again, it is unclear what the purpose of this project is or how it relates to UH<\/abbr>. It is unclear as to the extent that these funding choices of the Legislature came at the expense of funding other actually needed UH<\/abbr> priorities.<\/p>\n

UH<\/abbr> legislative package<\/h2>\n

As mentioned in my last update<\/a>, UH<\/abbr> submitted a number of bills for consideration this session. Others arose within the Legislature itself. Several consequential measures did pass the Legislature, although in a rather complicated and convoluted form.<\/p>\n

SB<\/abbr>589 CD<\/abbr>1 went through many variations before the final product was passed by the Legislature. In the end, there are five parts to this bill:<\/p>\n