Budget Highlights
- Overall budget is $386.7 million, a reduction of 4.1% or $16.46 million from the current year budget. This is the first time the county budget has been reduced since fiscal year 2001.
- Includes savings of $41,714 from furloughing appointed staff in the mayor’s office for one day per month for the entire fiscal year.
- No property tax increase, and continues free island-wide bus service.
- Includes cuts of 10% in non-salary and non-grant expenses for departments totaling $4.8 million.
- Unfunds 55 positions for a savings of $1.3 million, the largest number of positions unfunded in a single budget in county history.
- Continues the current level of county funding for non-profit organizations at $1.5 million per year.
Revenue/Expense Changes
- Assumes a decline in property tax collections of more than $15 million or 6.5% from current year budget.
- Includes a reduction in collections from the transient accommodations tax (TAT) or hotel room tax of 13.4% or $2.7 million from the current year budget. TAT collections are expected total $17.4 million.
- Includes a reduction in county interest revenue of $4 million.
- Budget assumes deposits into the Public Access, Open Space and Natural Resources Fund will be suspended for two years starting July 1 for a savings of $4.3 million per year.
- Budget assumes lands in Hamakua will be sold for approximately $8.2 million.
- Assumes an increase of $380,000 for increased drivers licensing and motor vehicle responsibility fees. The increased fees will allow the county to actually cover the cost of providing drivers licenses, which the county now provides at a loss.
- Includes a 23.7% increase in the cost of health coverage for active employees, and a 15.1% increase in the cost of health coverage for retirees. The additional cost to the county to provide coverage for the active and retired employees is $2.9 million for the year.
- Includes additional employee retirement payments of $1.7 million for the year, an increase of 5.6%.
###
