California Journal of Politics and Policy

The State of Hawai‘i’s $37.2 billion biennium operating budget for FY 2024 and FY 2025 provided substantial tax relief for vulnerable residents, and authorized new spending to improve access to affordable housing and health care. This article explores the policy decisions and conflicts among legislators and the newly elected Governor during the budget approval process. Although Governor Josh Green and the Democratic leadership agreed on the state’s most pressing policy priorities, the Legislature rejected Green’s proposal for broad middle-class tax relief in favor of more targeted benefits for low-income families. There were also several major disputes among legislators during the budget approval process, including a fight over the level of education spending, and the controversial creation of a $200 million discretionary fund for the Governor’s use. Beyond the budget, the paper explores several ongoing challenges, including Hawai‘i’s economic dependence on tourism, population decline, skyrocketing housing costs, government corruption, and the tragic fires in West Maui.