Kalbert Young, UH vice president for budget and finance and chief financial officer, shares his analysis of the 2025 Legislative session.
Aloha,
Before providing an update on the 2025 legislative session, I want to emphasize that the budget requests currently moving through the Legislature were submitted prior to the new federal administration taking office.
This may be an important fact, because UH—along with other state agencies—are currently assessing potential program impacts in anticipation of directed reductions in federal funding. Though the scope and specifics remain uncertain for the most part, the assessment of the financial implications is growing.
For our 10-campus system, these potential reductions could affect a wide range of areas, including student services, scholarships, programs, and research initiatives. In the coming weeks, UH leaders will be engaging with state legislators to discuss these anticipated shortfalls and explore potential solutions. I expect to have more information to share in my next budget update in mid-April.
Operating budget update
March 6 marked the first major deadline of the current legislative session, known as first crossover. At this stage, Senate bills move to the House of Representatives, and House bills cross over to the Senate. As of now, approximately 200 bills remain active that could have either a direct or indirect impact on UH.
A key measure advancing in the process is the biennial budget bill (HB 300 HD1), which recently passed from the House to the Senate, where it will now be reviewed by the Senate Committee on Ways and Means. HB 300 HD1 includes portions of the UH Board of Regents (BOR) biennial budget request, which was approved in November.
The BOR-approved request totaled $37.9 million in additional general funds for Fiscal Year 2025–26 (FY26) and $38.8 million for Fiscal Year 2026–27 (FY27). The House version of the budget bill appropriated $31.1 million for FY26 and $32.1 million for FY27.
The following table outlines the BOR operating budget requests, the governor’s executive budget proposal and the House’s approved funding levels in the HB 300 HD1.
| Campus | Project Description | ||||||
|---|---|---|---|---|---|---|---|
| Board of Regents | Governor | House | |||||
| FY26 | FY27 | FY26 | FY27 | FY26 | FY27 | ||
| Permanent Funding | |||||||
| UH Mānoa | Make Mānoa Athletics subsidy permanent | $3,200,000 | $3,200,000 | $3,200,000 | $3,200,000 | $3,200,000 | $3,200,000 |
| UH Mānoa | HIMB Positions from Act 181/23 | $246,118 | $246,118 | $246,118 | $246,118 | $246,118 | $246,118 |
| UH Mānoa | K–12 Expanded Teaching Cohort from Act 141/22 | $420,556 | $375,556 | ||||
| UH Mānoa | Pamantasan Council from Act 64/23 | $85,500 | $85,500 | $85,500 | $85,500 | $85,500 | $85,500 |
| UH Hilo | Make Hilo Athletics subsidy permanent | $800,000 | $800,000 | $500,000 | $500,000 | $500,000 | $500,000 |
| UH Hilo | Full Year funding for BS in Education Studies and Kahuawaiola Indigenous Teacher Education | $142,500 | $142,500 | $142,500 | $142,500 | $142,500 | $142,500 |
| UH Community Colleges | Windward CC Mental Health Tech Certificate of Competence Program from Act 107/24 | $210,150 | $210,150 | $210,150 | $210,150 | $210,150 | $210,150 |
| UH Community Colleges | Maui College Practical Nursing Bridge Program from Act 74/23 | $330,000 | $330,000 | $330,000 | $330,000 | $330,000 | $330,000 |
| UH Community Colleges | Pamantasan Council from Act 64/23 | $196,000 | $196,000 | $196,000 | $196,000 | $196,000 | $196,000 |
| Hawaiʻi Promise | |||||||
| UH Mānoa | Hawaiʻi Promise Program Expansion | $8,683,397 | $8,683,397 | ||||
| UH Hilo | Hawaiʻi Promise Program Expansion | $920,938 | $920,938 | ||||
| UH West Oʻahu | Hawaiʻi Promise Program Expansion | $2,451,832 | $2,451,832 | ||||
| Student Support | |||||||
| UH Mānoa | Financial Aid Counselors | $904,152 | $904,152 | $199,440 | $398,880 | $199,440 | $398,880 |
| UH Hilo | Retention Coordinator | $37,500 | $75,000 | ||||
| UH Hilo | Internship Coordinator | $37,500 | $75,000 | ||||
| UH Hilo | Student Enrollment Management | $432,500 | $640,000 | ||||
| UH West Oʻahu | Admissions and Financial Aid | $213,600 | $213,600 | $37,650 | $75,300 | $37,650 | $75,300 |
| Workforce Development – Nursing | |||||||
| UH Mānoa | UH Mānoa-UH West Oʻahu Nursing Collaboration Phase III | $447,936 | $447,936 | $447,936 | $447,936 | $447,936 | $447,936 |
| UH Mānoa | Online RN to BS Program | $111,984 | $111,984 | ||||
| UH Hilo | Increase School of Nursing cohort size | $297,500 | $595,000 | $357,500 | $475,000 | $357,500 | $475,000 |
| UH West Oʻahu | Pre-Nursing Pathway | $424,364 | $424,364 | $107,776 | $215,552 | $107,776 | $215,552 |
| Workforce Development – Other | |||||||
| UH Hilo | Administration of Justice Program Expansion | $75,000 | $150,000 | ||||
| UH Hilo | Data Science Program | $42,500 | $85,000 | ||||
| UH Hilo | Biocultural Science Program | $85,000 | $170,000 | ||||
| UH West Oʻahu | Teacher Preparation Programs | $90,455 | $90,455 | ||||
| Medical Facilities | |||||||
| JABSOM | Debt service for Kakaʻako Health and Wellness Campus | $2,725,000 | $2,725,000 | $1,108,019 | $1,533,463 | $1,108,019 | $1,533,463 |
| UH Cancer Center | Debt service and operational costs | $6,857,810 | $6,857,810 | $9,476,352 | $9,441,861 | $9,476,352 | $9,441,861 |
| Other Requests – Core Functions | |||||||
| JABSOM | Central Chiller Plant Operations | $63,000 | $63,000 | ||||
| UH Hilo | Groundskeepers | $101,280 | $202,560 | ||||
| UH West Oʻahu | ACM Facilities and Core Services | $341,748 | $341,748 | $66,888 | $133,776 | $66,888 | $133,776 |
| UH System | Information Security | $1,500,000 | $1,500,000 | ||||
| Other | |||||||
| UH Mānoa | Expand Concussion Education to Middle Schools | $200,000 | $200,000 | ||||
| JABSOM | Focus on cardiovascular disease and treatment | $700,000 | $700,000 | ||||
| UH Mānoa | Convert Athletics Positions and Additional Support | $4,519,341 | $4,519,341 | $320,000 | $320,000 | $320,000 | $320,000 |
| Governor’s Message | |||||||
| UH Mānoa | Pamantasan Council (additional funds) | $175,000 | $175,000 | $175,000 | $175,000 | ||
| UH Mānoa | Economic and Policy Research at UHERO | $480,000 | $480,000 | $480,000 | $480,000 | ||
| UH Mānoa | Athletics | $12,800,000 | $12,800,000 | $12,800,000 | $12,800,000 | ||
| UH Hilo | Rat lungworm research | $200,000 | $200,000 | $1 | $1 | ||
| UH Hilo | Athletics | $300,000 | $300,000 | $300,000 | $300,000 | ||
| UH Community Colleges | Pamantasan Council (additional funds) | $175,000 | $175,000 | $175,000 | $175,000 | ||
| UH System | Peace Program support staff | $150,000 | $150,000 | $1 | $1 | ||
| House Add-on | |||||||
| UH System | I Hoa Nā Moʻolelo | $179,378 | $179,378 | ||||
| TOTAL | $37,895,161 | $38,733,941 | $31,311,829 | $32,232,036 | $31,141,209 | $32,061,416 | |
Non-recurring items in red.
Capital Improvement Projects budget update
On the UH capital improvement projects (CIP) budget, the UH request was for $381.0 million for FY26 and $331.2 million for FY27 for modernization and to address deferred maintenance at UH facilities. The request also included $118.5 million for UH Mānoa student housing upgrades. The House version includes $229.7 million for FY26 and $43.5 million for FY27. It includes $30.8 million for FY26 and $28.5 million for FY27 in State General Obligation Bonds and the same amount in UH Revenue Bonds. This would essentially be a cost-sharing measure between the state and UH’s Student Housing program.
The following table shows the CIP budget comparison between the board, governor and House:
| Campus | Project Description | ||||||
|---|---|---|---|---|---|---|---|
| Board of Regents | Governor | House | |||||
| FY26 | FY27 | FY26 | FY27 | FY26 | FY27 | ||
| UH System/Mānoa | RIM Projects | $100,000,000 | $100,000,000 | $50,000,000 | $50,000,000 | $50,000,000 | |
| UH Mānoa | *Student Housing Services Improvements | $61,500,000 | $57,000,000 | $25,000,000 | $25,000,000 | $30,750,000 | $28,500,000 |
| UH Mānoa | Assessment and Feasibility of Hamilton Library | $4,000,000 | $4,000,000 | $4,000,000 | |||
| UH Mānoa | Waikīkī Aquarium Improvements | $4,000,000 | |||||
| UH Mānoa | Athletics Improvements | $10,000,000 | $10,000,000 | $10,000,000 | |||
| UH Mānoa | Holmes Hall | $9,000,000 | $9,000,000 | $9,000,000 | |||
| UH Mānoa | PV Rooftop and Canopies and Various Energy Efficiency Projects | $20,000,000 | $20,000,000 | ||||
| UH Mānoa | Mini Master Plan Phase 3-Kuykendall Hall | $5,000,000 | $5,000,000 | $5,000,000 | |||
| UH Mānoa | Admin Office and Parking Phase I and II | $9,000,000 | |||||
| UH Hilo | RIM Projects | $29,625,000 | $22,685,000 | $15,000,000 | $15,000,000 | $15,000,000 | |
| UH Hilo | Puakō Marine Education and Research Center, Phase I | $750,000 | |||||
| UH West Oʻahu | RIM Projects | $6,900,000 | $5,000,000 | $6,500,000 | $4,500,000 | $6,500,000 | |
| UH Community Colleges | Capital Renewal and Deferred Maintenance | $37,500,000 | $25,000,000 | $20,000,000 | $20,000,000 | $20,000,000 | |
| UH Community Colleges | Minor CIP | $37,500,000 | $25,000,000 | $37,500,000 | |||
| UH Community Colleges | Kapiʻolani CC-Kauila and Kopiko Renovations for Health Sciences | $34,800,000 | |||||
| UH Community Colleges | Honolulu CC-Technology Renovations, Phase 2 | $32,000,000 | $15,000,000 | $15,000,000 | |||
| UH Community Colleges | UH Maui College-Heona Modernization | $15,000,000 | $15,000,000 | ||||
| UH Community Colleges | UH Maui College-Hale Modernization | $12,000,000 | |||||
| UH Community Colleges | Windward CC–Alakaʻi Building Renovation | $15,000,000 | $15,000,000 | ||||
| UH Mānoa | Land Acquisition for former St. Francis Property | $1,000 | |||||
| UH Mānoa | Waimānalo CTAHR CARES center | $5,500,000 | |||||
| UH Mānoa | Magoon Research Station | $6,000,000 | |||||
| UH System | Demolition of Undersea Laboratory Building (Makai Pier) | $500,000 | |||||
| UH System | Project Adjustment Fund | $4,000 | |||||
| TOTAL | $381,025,000 | $331,235,000 | $145,500,000 | $114,500,000 | $229,755,000 | $43,500,000 | |
*House also added $30,750,000 in FY26 and $28,500,000 in FY27 in revenue bond appropriation for Student Housing.
Next deadline
The next major deadline in the legislative session is second crossover on April 10, when bills that remain active will return to their originating chamber for further consideration. This will be followed by conference committees in the final two weeks of the session, where legislators will work to resolve differences between House and Senate versions of bills. The Hawaiʻi State Legislature is scheduled to adjourn on May 2, 2025. I will next provide an update following the second crossover and then again after the session concludes.
Mahalo for your time and attention,
Kalbert Young
UH Vice President of Budget and Finance/Chief Financial Officer
