LIHU‘E — When the administration of Mayor Derek Kawakami was initially creating next year’s budget, there were proposals for new revenue bills and increased tax rates that imposed higher fees on residents.
But due to the current coronavirus crisis, the administration will not propose these increases to the Kaua‘i County Council for the fiscal year 2021 budget.
With no visitors around the island and reduced spending from residents, there will be decreases in revenues, county Finance Department Director Reiko Matsuyama said Friday.
When the county was looking at increasing certain fees, it could have potentially added $4.178 million to the General Fund and $312,100 to the Solid Waste Fund. When there is less money coming into the county, that could look like less money to fund major infrastructure projects.
The bulk of the money that comes into the county is from real property taxes. The property assessments were completed in
February. These assessments, along with department-by-department projections, were used to create the proposed budget that was submitted to the council in March.
More revenue assumptions will be shared with the council at its meeting on Wednesday, April 8, which will be telecast live online.
The county will not know exactly how much money will come in from the state just yet, but it can anticipate a full share of the state transient accommodations tax.
The state’s Council on Revenues projected that “most of the revenue effects of the virus will be felt in FY 2021” in a letter to Gov. David Ige dated March 13. However, the Council on Revenues anticipated that there would be effects seen and “felt in the last quarter” of the current fiscal year, which runs through June 30.
Typically, the County Council would host budget meetings for three weeks, but with the virus new precautions are being taken. Budget talks continued last week, with the county publishing councilmember questions and department answers on the county’s website via memos since in-person sessions have been canceled to maintain proper social-distancing measures.
Department heads submitted proposed budgets earlier this year, along with presentations outlining upcoming projects and goals.
County Budget Administrator Ken Shimonishi said the Finance Department reached out to revenue-generating departments in the county for more projections, but said a lot is up in the air as the economy enters a downturn.
“Keep in mind so much is unknown,” Shimonishi said.
The County Council, too, has asked departments to take hard looks at proposed budgets and underscore what’s really needed in case there are revenue shortfalls next year and in the years to come.
Michael Dahilig, county managing director, wrote in a memo to the council that some of the new policies the administration plants to implement due to the current global pandemic include not filling new or vacant positions, limiting new vehicle purchases, and not increasing funds for the Kaua‘i Humane Society.
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Sabrina Bodon, public safety and government reporter, can be reached at 245-0441 or sbodon@thegardenisland.com.
