For fiscal year 2026, which starts on July 1, the University of Hawaiʻi need an extra $37.9 million for services and programs at its 10-campus system.
The funds would be utilised for a variety of purposes, such as athletic activities, financial aid counsellors, information security, nursing programs, and debt service for the UH Cancer Centre.
However, the Senate believes the institution can function just fine with less money in its operating budget—only $5 million total, to be exact—according to a UH News analysis of the state budget published Friday. For the upcoming fiscal year, a comparable sum is allotted.
The Senate’s budget plan is regrettably “par for the course — normal,” according to Kalbert Young, UH’s chief financial officer and vice president for budget and finance.
“There always is a very big difference in terms of where the Senate and the House are in terms of budget priorities,” he stated Tuesday.
As House Bill 300 is negotiated behind closed doors, Young, who was the state budget director under Governor Neil Abercrombie and is no stranger to budget battles, is unsure of what UH will finally come up with.
The university requires a significant amount of funding to operate, usually $595 million annually, and UH has recently had the support of many members of the Legislature.
UH received $617 million in general funds in fiscal year 2025, which concludes on June 30. This represents a $3 million increase over the previous fiscal year.
However, Young is concerned about what seems to be a trend: The Senate consistently undermines the university’s claims that it needs to carry out its operations.
Even though UH has self-governing authority, a number of senators have historically been very critical of how it spends its funds, particularly Donna Kim, leader of the Senate Higher Education Committee, and Donovan Dela Cruz, head of the Ways and Means Committee.
Additionally, Young contextualises the present state funding request in light of the Trump administration’s massive federal budget cuts, of which Young’s own boss has lately issued a warning.
Last week, UH President Wendy Hensel sent out a mass email to the UH community outlining some of the adjustments UH has taken in response to Trump administration policy.
“So far at UH, 44 programs have been terminated, received stop-work orders, or are being phased out, affecting more than 39 employees and approximately $23.5 million in funding,” she stated. “We expect this number to grow. Campuses will likely need to use reserve funds to meet severance obligations for affected employees, as required by collective bargaining agreements and university policies.”
Hensel did not name the staff or programs. But she noted that the economic uncertainty brought on by Trump’s trade policies, which could raise inflation and, consequently, university running costs, is probably what’s causing adjustments in financial planning.
Contract evaluations, travel expense caps, and hiring restrictions are already in place.
The university’s proposal for funding for its capital improvement projects also demonstrates how the Senate has changed UH’s budget objectives.
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For instance, UH regents requested $381 million for fiscal year 2026. That sum was reduced to $229 million in the House version of the budget, which was prepared prior to the Senate’s consideration.
The amount was raised to $252 million by the Senate’s CIP appropriation. However, as Young noted, over half of that sum would go into a single project: $120 million for student housing at Kauaʻi Community College.
Kauaʻi is home to both the House and Senate leaders.
Young did point out that the House and Governor Josh Green have supported UH’s budget priorities far more than the Senate has.
The House and the Green administration’s additional operating budget proposals were well over $30 million, far more than the $5 million or so that the Senate permitted, even though they were about $5 to $6 million less than what the UH Board of Regents had requested.
Young is handling the budget uncertainty well, despite his concerns.
Monday marked the start of the House-Senate conference, which runs through April 25. In an attempt to finalise a budget before the start of the three-day weekend, the House Finance Committee and the Senate Ways and Means Committee are scheduled to hold a public meeting early Thursday evening.
According to Young, the CIP and operational requests were submitted prior to Trump taking office in January. However, he claimed that within the previous five weeks, things have drastically changed.
“And every week is worse,” Young stated. “So we’re talking about funding for programs, services — in addition to research that the university does — is going away.”
“So while there is no specific budget ask of the state yet to supplant the loss of those federal funds — spoiler alert — be advised: I portend that that day is coming very soon.”
Hensel will give an update on the effects of changes in federal legislation and the university’s response at an open forum on Monday afternoon at the UH Mānoa Campus Centre.
