Budgeting is a key public policy-making process. Because the city’s financial resources are limited, the budget becomes a means for public policymakers to choose between competing requests. In answering the question “Who gets what?” the council establishes the goals of city government and, consequently, prescribes the values and priorities of the city.
Section 3-112, Revised Charter of the City and County of Honolulu 1972, as amended (RCH), requires that any budget adopted by the council must be balanced. The council is also required to adopt revenue measures to generate the monies necessary to cover the costs of these budgets. In effect, it is the council’s responsibility to ensure that the budgets put forth by the mayor are fiscally prudent. From March to June, the council carefully deliberates the city’s budget package. This three-month process is the only opportunity for the public to suggest alternatives to the mayor’s proposals by voicing their opinions directly to councilmembers. It is through the budget deliberation process that council members are able to directly respond to constituency concerns. Councilmembers may propose budget amendments to include funding that addresses specific district needs and ensures that quality services are provided to the public in the ensuing fiscal year. In this sense, it is the council’s role to be the “checks and balances” for the public throughout the budget decision-making process.
The city’s fiscal year (FY) begins on July 1 and ends on June 30 of the following year. The charter requires that an executive budget for the city must be submitted by the mayor and enacted by the council on an annual basis. Key components of the city’s budget are the different budget measures and the city’s revenue program.
The Executive Operating Budget identifies where the city gets its money and how it will pay for day-to-day operations. Operating expenses are paid for with cash revenues. The Executive Capital Budget identifies long-lived projects, facilities and large equipment that the city plans to develop or purchase over the next six years. Typically, the primary CIP funding source is bond proceeds. The Legislative Budget Provides funding for legislative branch offices. Honolulu Authority for Rapid Transit (HART) is a semi-autonomous public transit authority created to oversee the construction and operation of the rail system. The HART operating and capital budgets provide funding for the city’s rail transit project. The city’s Revenue Program is comprised of various financing mechanisms such as taxes, fees and bond proceeds to finance the proposed budgets for the city. All proposed revenue generating legislation is subject to amendment by the city council. The council must annually set real property tax rates in conjunction with the adoption of the city budgets.
Read more about the 2017/2018 budget proposals:
Bill 25: Executive Operating Budget
Bill 26: Executive Capital Budget
Bill 32: HART Operating Budget