LIHUE — The current state of uncertainty in the nation did little to affect Mayor Derek S.K. Kawakami’s seventh State of the County address on Thursday at the Moikeha Building.
If anything, Kawakami invited those recent federal layoffs to apply for county employment positions.
“As we sit here enjoying the beautiful sun shining above, we can’t help but feel the instability and uncertainty that lingers in the air,” Kawakami said to the several hundred. people who filled the Moikeha Building, and the hundreds more that watched the proceedings on social media.”Shifting tides and waves of change can bring anxiety if we allow it.”
“But we will not allow it,” Kawakami said.
The crux of Kawakami’s message is the presentation of the Fiscal Year 2026 budget, which shows an Operating Budget of $347.7 million and a Capital Improvement Budget of $140.4 million. The proposed budget will be sent to the Kauai County Council for approval.
Kawakami said in a county release that this year’s budget will prioritize infrastructure projects, affordable housing initiatives, and improved customer service, starting with investing in the right equipment for employees to do their jobs.
In support of first responders, the County is proposing the purchase of a new twin-engine helicopter to replace the Kauai Fire Department Air 1 single-engine helicopter. Kawakami said this purchase would enhance firefighting and rescue capabilities while drastically improving the safety of county rescuers and those they rescue.
“We plan to differentiate ourselves from other employers by offering associates on-site childcare right here at the Lihue Civic Center,” Kawakami said, noting the focus on creative ways to recruit and retain county employees. “Renovation of our Piikoi youth space is expected to be complete this fall. We are working to identify providers to offer childcare in this newly renovated space and invite interested providers to reach out. Childcare challenges should not be a barrier for parents who want to get back to work.”
Kawakami spoke of adding capacity with three new positions to support the Department of Public Works Roads Division crews across the island.
“These crews maintain roadways, pavement, and vegetation for more than 600 lane-miles of County roadway,” Kawakami said. “While they don’t carry the title of first responder, they are often the first to respond to clear downed trees, flooded roads, or fire breaks during severe weather events.”
Kawakami said a continued priority on infrastructure will carry over into this year’s budget proposal, requiring significant investments.
“With GET funding, we have made significant progress in improving road conditions across the island,” the mayor said. “To date, 232 roads spanning 234 lane miles have been resurfaced, representing a $68 million investment in safer and smoother transportation. We have worked hard to clear the backlog of our island’s most critical repairs and can now increase our production pace with a higher efficiency mill and fill operation. Looking ahead, 35 additional roads totaling 48 lane miles are under contract at the cost of $21 million.”
No infrastructure project is more critical on the island than extending the life of the Kekaha Landfill.
“Without intervention, our current landfill will reach capacity in 2027,” Kawakami said. “While working on the Kekaha expansion, our Solid Waste Division is leaving no stone unturned to site a new landfill location, and we are committed to waste diversion efforts.”
“We thank our partners at the Board of Land and Natural Resources and Pacific Missile Range Facility for supporting on-site expansion, and of course, the residents of Kekaha for putting the burden of our island’s landfill on your back,” Kawakami said.
Improvements to all refuse transfer stations are underway to address water quality standards and stormwater drainage.
“All Kapaa refuse services will reopen this year, with Hanapepe and Hanalei projects to follow,” Kawakami said. We are pleased to report that the Lihue transfer station has now reopened to the public.”
Affordable housing remains essential in this year’s budget.
“With the Housing Agency and numerous supportive partners, the County of Kauai has become the island’s largest developer of affordable housing,” Kawakami said. “Housing initiatives include Lima Ola in Eleele, which features 115 supportive, workforce, and senior housing units. Phase II will add 174 affordable homes. The Waimea and Kilauea projects aim for 250 units in Waimea and 350 in Kilauea, pending environmental reviews and zoning applications. The County is seeking a partner for the Puhi project that will add 60 units near the Kauai Community College.”
The mayor announced improvements to public services, including the expansion of online payment options for county services and the reduction of the need for most in-person transactions.
“We are now accepting online payments for most county services, no longer requiring customers to pay at the counter,” Kawakami said. “From camping permits to building permits, customers can avoid waiting in line and pay online.”
Kawakami also expressed gratitude to the state Legislature for the cost-sharing that made the Vidinha Stadium Improvement Project possible. The County broke ground recently on Phase I, which features $12 million in upgrades to the football field, track, and scoreboard. Future phases will include bleacher repairs, improved restrooms, enhanced lighting, and Americans with Disabilities Act compliance upgrades.
“Hawaii has an opportunity to stand together and demonstrate what makes us unique,” Kawakami said. “Our desire to find common ground outweighs political views and personal beliefs. And, in times of chaos, our bond brings a sense of calm and provides a beacon of hope. As community leaders, parents, coaches, teachers — whatever role you play — our most important job is to share hope.”
A video of Kawakami’s 2025 State of the County Address can be seen at https://www.youtube.com/watch?v=OjkX0TlxRmA.
