Hawaii Prepares for the Next State Budget Cycle
Hawaii is moving through the early stages of its next state budget cycle, with revenue forecasts and agency funding requests helping shape spending decisions for fiscal year 2027 and beyond.
The state’s budget process is based on a two-year cycle. The Department of Budget and Finance says agencies typically submit their budget requests in October, with executive budget recommendations developed later in the year before being transmitted to the Legislature ahead of the regular legislative session.
Why the Budget Matters
State budget decisions affect a wide range of public services, including education, transportation, health programs, public safety and infrastructure.
For residents, changes in state appropriations can influence the resources available to schools, transportation projects, public programs and other government services. The state budget also provides funding for capital improvement projects throughout the islands.
Revenue Forecasts Help Shape Spending
Hawaii’s Council on Revenues plays an important role in the process by preparing estimates of state government revenue.
The Council issued its latest General Fund forecast on September 3, 2026. State law requires the Council to provide revenue estimates that are considered by the governor when preparing the state budget and by the Legislature when appropriating funds.
The September forecast is particularly important because Hawaii’s budget timetable calls for the executive branch to use the September revenue forecast when developing its budget recommendations.
Agency Requests Are the Next Step
Under the state’s general budget timetable, state departments submit their budget requests to the Department of Budget and Finance in early to mid-October.
Budget and Finance then reviews those requests and develops recommendations. Executive budget decisions are generally finalized in December, with the budget documents prepared for submission to the Legislature before the start of the regular legislative session.
This means the current period is more accurately described as budget preparation and planning, rather than lawmakers having already finalized specific spending priorities for 2027.
Areas Residents Will Be Watching
As the process develops, residents and community organizations will be watching funding proposals affecting education, transportation, public safety, health services and infrastructure.
The state’s broader economic outlook will also be an important consideration. Hawaii’s Department of Business, Economic Development & Tourism released its third-quarter 2026 economic report on September 10, providing updated information on the state’s economy, employment, income, tourism, construction and tax revenues.
What Happens Next
The executive branch will continue reviewing agency requests and developing its budget recommendations through the fall. The Legislature will then consider the administration’s proposals during the 2027 regular session.
The state’s budget timetable calls for the regular legislative session to begin in January, followed by departmental budget hearings and additional revenue forecasts from the Council on Revenues. The Legislature’s January and March revenue forecasts will help inform its appropriation decisions.
Residents can follow the process through the Hawaii Department of Budget and Finance, the Council on Revenues and the Hawaii State Legislature. Legislative documents, hearings and budget measures will become increasingly available as the 2027 session approaches.
Practical Takeaway
Hawaii’s next state budget is still in the preparation and development stage. The September revenue forecast provides an important foundation for executive budget planning, while state agencies are preparing funding requests ahead of the next phase of the process.
Residents who want to understand how the budget could affect their communities should monitor agency requests, executive budget recommendations and legislative hearings as they are released. These documents will provide a clearer picture of proposed spending priorities before lawmakers make final appropriations.