Kalbert Young, UH vice president for budget and finance and chief financial officer, shares his analysis of UH‘s biennial operating budget request.
Operating budget
On Thursday, November 17, 2022, the University of Hawaiʻi Board of Regents (BOR) approved a biennial operating budget request that was submitted to Gov. Josh Green and the state Legislature. On December 19, the governor submitted the executive branch (including UH) biennial operating budget request to the Legislature. This update will provide additional information regarding the BOR request and the changes made by the governor.
With the beginning of a new gubernatorial administration, two budget submittals to the Legislature by the administration are anticipated. The first will be a “Steady State” budget, which will primarily focus on maintaining status quo operations while also meeting constitutional and statutory requirements. The second submittal may be later in February or March 2023. This submittal will allow the new administration time to better align specific budget requests and policies around its priorities. The governor’s budget, which is included in this report, is the “Steady State” budget.
Part of the university’s budget request seeks to restore general fund support from the state to pre-pandemic levels by requesting $17.5 million in both fiscal year (FY) 2024 and FY25. UH is also asking for continued funding support for the athletics programs at UH Mānoa and UH Hilo in the amount of $3.6 million for each fiscal year; $85,000 for the UH Mānoa Hawaiʻi Institute of Marine Biology for the additional six months of salary that was not included in the 2022 budget due to hiring delays to fund positions that maintain the island; $1.67 million for the UH Mānoa John A. Burns School of Medicine (JABSOM) residency expansion, which is also for the additional six months of salary due to hiring delays to fund positions; and $2 million for the continuation of the JABSOM Neighbor Island MD program.
Two key categories that UH is requesting funding for include the expansion of the Hawaiʻi Promise Program to the four-year campuses and addressing the need to expand the healthcare workforce across the state. The Hawaiʻi Promise Program is a “last dollar” scholarship that provides free in-state tuition for qualified UH Community College students with unmet direct costs of education. Students are first awarded Pell grants, UH scholarships and private scholarships before being awarded a Hawaiʻi Promise Scholarship for unmet direct costs such as tuition, fees, books, supplies and local transportation.
Learn more about the Hawaiʻi Promise Program
The program has been very successful in helping thousands of students afford tuition at the community colleges. UH is requesting an additional $3.7 million to the current base budget for the program to help fund the increased demand for aid for students attending UH community colleges. UH is also requesting $19 million to expand the Hawaiʻi Promise Program to the four-year institutions—Mānoa, Hilo and West Oʻahu. Outside of the continued funds to operate UH as mentioned above, the continuation and expansion of the Hawaiʻi Promise Program is our top priority.
Hawaiʻi’s healthcare workforce is in high demand in order to meet critical staffing shortages in the healthcare industry. Therefore, UH is requesting funding for the expansion of a number of health-related instructor positions across the UH System in the amount of $4.3 million in FY24 and $4.6 million in FY25. UH is also requesting funding for campus facilities and core services; supporting student success, addressing areas of state need; and early college expansion.
The governor considered UH’s requests and included portions of it as part of the executive branch’s budget proposal to the Legislature, which was transmitted to the Legislature on December 19, 2022. The differences between the BOR request and what ultimately made it into this “Steady State” budget are listed below.
| Campus | Description | ||||
|---|---|---|---|---|---|
| Board of Regents | Governor | ||||
| FY24 | FY25 | FY24 | FY25 | ||
| RESTORATION OF FUNDS | |||||
| UH Mānoa | General Fund Restoration | $5,600,000 | $5,600,000 | $5,600,000 | $5,600,000 |
| JABSOM | General Fund Restoration | $1,800,000 | $1,800,000 | $1,800,000 | $1,800,000 |
| UH Hilo | General Fund Restoration | $3,420,000 | $3,420,000 | $3,420,000 | $3,420,000 |
| UH West Oʻahu | General Fund Restoration | $1,620,000 | $1,620,000 | $1,620,000 | $1,620,000 |
| UH System Admin | General Fund Restoration | $5,086,848 | $5,086,848 | $5,086,848 | $5,086,848 |
| SUSTAINED FUNDING | |||||
| UH Mānoa | Athletics Subsidy Continuation | $3,200,000 | $3,200,000 | $3,200,000 | $3,200,000 |
| UH Hilo | Athletics Subsidy Continuation | $400,000 | $400,000 | $400,000 | $400,000 |
| UH Mānoa | HIMB Full Year Funding | $85,500 | $85,500 | $85,500 | $85,500 |
| JABSOM | GME Residency Full Year Funding | $1,670,000 | $1,670,000 | $660,000 | $660,000 |
| JABSOM | Neighbor Island MD Expansion Continuation | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 |
| HAWAIʻI PROMISE PROGRAM | |||||
| UH Mānoa | Hawaiʻi Promise Expansion | $12,300,000 | $12,300,000 | $12,300,000 | $12,300,000 |
| UH Hilo | Hawaiʻi Promise Expansion | $1,700,000 | $1,700,000 | $1,700,000 | $1,700,000 |
| UH West Oʻahu | Hawaiʻi Promise Expansion | $5,000,000 | $5,000,000 | $5,000,000 | $5,000,000 |
| UH Community Colleges | Hawaiʻi Promise Continuation | $3,700,000 | $3,700,000 | $3,700,000 | $3,700,000 |
| CAMPUS FACILITIES AND CORE SERVICES | |||||
| UH Hilo | Security Officers | $313,320 | $313,320 | ||
| UH West Oʻahu | Security Officers | $30,900 | $61,800 | ||
| UH Community Colleges | Security Officers | $693,780 | $1,456,938 | ||
| UH Hilo | IT Support | $160,000 | $160,000 | ||
| UH Hilo | Analytical Lab Manager | $80,000 | $80,000 | ||
| UH West Oʻahu | Campus and ACM Support | $162,996 | $325,992 | ||
| EARLY COLLEGE EXPANSION | |||||
| UH Community Colleges | Early College Expansion | $577,500 | $1,212,750 | ||
| UH West Oʻahu | Early College Expansion | $90,000 | $180,000 | ||
| UH System Admin | Early College Expansion | $90,000 | $180,000 | ||
| INITIATIVE: SUPPORT STUDENT SUCCESS | |||||
| UH West Oʻahu | Student Success Support | $261,252 | $522,504 | ||
| UH Community Colleges | UH Maui College – Health Center | $98,500 | $200,250 | $98,500 | $200,250 |
| UH Community Colleges | UH Maui College – Distance Learning | $73,500 | $147,750 | ||
| UH Mānoa | Kūlia I Ka Nuʻu Undergraduate Research Initiative | $721,600 | $1,058,400 | ||
| UH Hilo | Transfer Center | $60,000 | $60,000 | ||
| UH Hilo | Career Advising and Internship Admin | $60,000 | $60,000 | ||
| UH Community Colleges | Windward CC – Incarcerated Students | $125,500 | $241,550 | ||
| UH Community Colleges | Hawaiʻi CC – Incarcerated Students | $37,500 | $78,750 | ||
| ADDRESS AREAS OF STATE NEED | |||||
| UH Hilo | Administration of Justice Program Expansion | $142,000 | $142,000 | ||
| UH Hilo | MA Teaching Expansion and Kahuawaiola Indigenous Teacher Ed | $210,000 | $210,000 | ||
| UH Hilo | MA Counseling Psychology | $210,000 | $210,000 | ||
| UH Hilo | CAFNRM Sustainable Agribusiness | $100,000 | $100,000 | ||
| UH West Oʻahu | Teacher Preparation | $70,676 | $141,352 | ||
| INDUSTRY INITIATIVE: HEALTH | |||||
| UH West Oʻahu | Health and Wellness | $147,158 | $294,316 | $147,158 | $294,316 |
| UH Mānoa | Health Science Initiative | $477,009 | $688,473 | $477,009 | $688,473 |
| UH Community Colleges | Kapiʻolani CC – Allied Health Professions and NI Expansion | $761,000 | $761,000 | $761,000 | $761,000 |
| UH Community Colleges | Windward CC – CNA Program Support | $86,000 | $86,000 | $86,000 | $86,000 |
| UH Community Colleges | Kauaʻi CC – Medical Assisting Program Support | $232,000 | $232,000 | $232,000 | $232,000 |
| UH Community Colleges | Kapiʻolani CC – Nursing Clinical Faculty | $259,998 | $259,998 | $259,998 | $259,998 |
| UH Community Colleges | Hawaiʻi CC – Nursing Program Maintenance and Expansion | $474,000 | $474,000 | $474,000 | $474,000 |
| UH Community Colleges | Kauaʻi CC – Nursing Faculty | $258,000 | $258,000 | $258,000 | $258,000 |
| UH Community Colleges | UH Maui College – Nursing Faculty | $172,000 | $172,000 | $172,000 | $172,000 |
| UH Community Colleges | UH Maui College – CNA to LPN Program Support | $86,000 | $86,000 | $86,000 | $86,000 |
| UH Mānoa | UH West Oʻahu–UH Mānoa Nursing Collaboration | $503,000 | $503,000 | $503,000 | $503,000 |
| UH Mānoa | NAWSON Programs and Training Support | $661,430 | $661,430 | $661,430 | $661,430 |
| UH Hilo | Nursing Faculty Support | $198,000 | $198,000 | $198,000 | $198,000 |
| GOVERNOR’S ADD-ONS | |||||
| UH Mānoa | Restore Funds for Previously Unfunded Positions | $6,073,157 | $6,073,157 | ||
| JABSOM | Restore Funds for Previously Unfunded Positions | $926,843 | $926,843 | ||
| UH Cancer Center | Restore Funds for Previously Unfunded Positions | $1,000,000 | $1,000,000 | ||
| UH Hilo | Restore Funds for Previously Unfunded Positions | $1,000,000 | $1,000,000 | ||
| UH West Oʻahu | Restore Funds for Previously Unfunded Positions | $1,000,000 | $1,000,000 | ||
| TOTAL | $56,266,967 | $59,399,921 | $60,986,443 | $61,446,815 | |
Capital improvement program (CIP) budget
The capital improvement program (CIP) budget request was also approved at the November 17, 2022, BOR meeting. The bulk of the CIP plan is intended to allow UH to continue to address health and safety measures, increase efficiency and utilization of existing spaces, and support current and funded research activities.
UH is requesting $262 million for FY24 and $247 million for FY25 to address capital renewal, progress on deferred maintenance, and funding for projects to modernize each of the campuses within the UH System. The governor included $117.5 million in FY24 and $125 million in FY25 in his budget request. Notably, some of the funding is provided by state general funds, which are essentially cash, rather than general obligation bonds, which are debt financing. The following table lists the projects from the BOR-approved budget and the amounts that were included in the governor’s request:
| Campus | Description | ||||
|---|---|---|---|---|---|
| Board of Regents | Governor | ||||
| FY24 | FY25 | FY24 | FY25 | ||
| UH System Admin | Renew, Improve and Modernize (GO Bonds) | $100,000,000 | $100,000,000 | $20,000,000 | $20,000,000 |
| UH System Admin | Renew, Improve and Modernize (General Funds) | $30,000,000 | $30,000,000 | ||
| UH Hilo | Renew, Improve and Modernize (GO Bonds) | $17,500,000 | $26,500,000 | $17,500,000 | $26,500,000 |
| UH Community Colleges | Renew, Improve and Modernize (GO Bonds) | $25,000,000 | $25,000,000 | ||
| UH Community Colleges | Renew, Improve and Modernize (General Funds) | $25,000,000 | $25,000,000 | ||
| UH West Oʻahu | Renew, Improve and Modernize (GO Bonds) | $5,000,000 | $3,500,000 | $5,000,000 | $3,500,000 |
| UH Mānoa | PV Rooftop and Canopies and various Energy Efficiency Projects | $20,000,000 | $20,000,000 | ||
| UH Community Colleges | Minor CIP (GO Bonds) | $25,000,000 | $25,000,000 | ||
| UH Community Colleges | Minor CIP (General Funds) | $20,000,000 | $20,000,000 | ||
| UH Mānoa | Assessment and Feasibility of Hamilton Library | $6,500,000 | |||
| UH West Oʻahu | Road B Entry Plaza | $5,500,000 | |||
| UH Community Colleges | Kapiʻolani CC – Replace AC System | $15,000,000 | |||
| UH Community Colleges | Kauaʻi CC – Upgrade Fire Alarm System | $8,500,000 | |||
| UH Mānoa | Mini Master Plan Phase 3 – Kuykendall Hall | $5,000,000 | |||
| UH West Oʻahu | Campus Center Phase II | $49,000,000 | |||
| UH Community Colleges | Windward CC – Repair/Replace HVAC | $11,000,000 | |||
| UH Mānoa | Athletics | $12,000,000 | $18,000,000 | ||
| UH Community Colleges | Kapiʻolani CC – Renovate Building | $2,000,000 | $10,000,000 | ||
| UH Mānoa | Admin Office and Parking | $8,000,000 | |||
| UH Community Colleges | Honolulu CC – Technology Renovations Phase 2 | $3,000,000 | |||
| UH Mānoa | Holmes Hall | $1,500,000 | $6,000,000 | ||
| UH Community Colleges | Hawaiʻi CC – Manono Campus Development | $2,000,000 | |||
| UH Mānoa | Waikīkī Aquarium Seawall Repair | $3,000,000 | |||
| TOTAL | $262,500,000 | $296,000,000 | $117,500,000 | $125,000,000 | |
The governor’s executive branch budget request, along with all the other measures, will be deliberated by the Legislature during the 2023 legislative session, which convenes on Wednesday, January 18, 2023. This biennium budget will be for the upcoming fiscal years that run from July 1, 2023 through June 30, 2024 and July 1, 2024 through June 30, 2025.
As in previous years, I hope to provide readers with updates throughout the legislative session to show the progression of the budget for UH as it moves through the process.
Let’s see what 2023 has in store.
