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The most important story of the 2023 Hawaii Legislature was the state budget. House and Senate leaders could not agree on how to fund the state for the next two years, which led to a rebellion on the House floor and an agreement reached on the final day of session. Dozens of good bills died due to the indecision.

The most important story at the 2024 Hawaii Legislature was also the state budget. The session began with worries over how to address the Maui wildfires but ended with so much money being available that lawmakers took care of Maui but also approved a huge tax cut. And it was settled long before adjournment.

In the early evening of April 23, the lei-adorned chairs and vice chairs of the Legislature’s money committees and their colleagues exchanged smiles and complimentary remarks as they read off highlights of to a packed Conference Room 309 at the Capitol.

They had delivered a deal on the $19.2 billion supplemental budget, which included money for operating, capital improvement projects and grants in aid for the fiscal year that begins July 1.

But the and the took very different paths to get to the finish line, a journey that began in early January when both committees began holding informational budget briefings from more than two dozen state departments and agencies.

The varied approaches to the budget and other bills begin with the dissimilar personalities of the WAM and Finance chairs themselves, as well as their respective colleagues.

Only One of the Chairs Inspires Fear

Sen. Donovan Dela Cruz is arguably the most powerful person in the 76-member Legislature. He is the lawmaker most feared by unprepared testifiers because they know he has done his homework and will ask tough questions about how taxpayer money is being spent — or not spent.

He also has his own agenda, especially regarding the use of state land for agriculture, economic diversification and workforce development.

For example, when Kali Watson showed up for the Department of Hawaiian Home Lands budget presentation before WAM on Jan. 9, he was all set to talk about his desire to give his department more time to use the $600 million allocated under Act 279 of 2022. His primary goal and responsibility is to reduce the waiting list for home lands.

But the first questions from Dela Cruz to Watson were not about Act 279, the waiting list of Native Hawaiian beneficiaries or the 321 pages in briefing materials. Instead, he wanted to know if DHHL had inventoried lands that are not being developed. They could be used for other purposes like aquaculture, he suggested, or by other agencies.

Watson, a veteran administrator not easily intimidated, seemed taken aback by Dela Cruz’s line of questioning. He was not ruffled, though, and the briefing did eventually get to the department’s budget. But the exchange underscored Dela Cruz’s passion for land banking and his style of leadership.

The next day brought a rougher scene as senators grilled University of Hawaii leaders over funding for student housing. Dela Cruz and Sen. Donna Kim in particular questioned the university’s commitment to repair and maintenance.

I was not in Conference Room 211 that day, but I could still feel the tension watching the YouTube live-stream. Dela Cruz and Kim believe it is their job to hold agencies accountable, but it can be uncomfortable to watch.

Others on WAM, including Sen. Kurt Fevella, often follow Kim’s and Dela Cruz’s lead in interrogating testifiers, sometimes to the point where even the chair appears to recognize his colleagues might be pushing a little too hard.

Contrast the WAM briefings with the House Finance briefings that same month with Lt. Gov. Sylvia Luke, where Luke, a former Finance chair, joked with Yamashita how he had altered the seating in Conference Room 308. Yamashita had been her vice chair, and their collegiality was evident.

Similarly, Gov. Josh Green was warmly welcomed by Finance for his office’s budget briefing. Green even brought along his top staff for the occasion which, even though it involved substantive questioning from FIN members, was something of a lovefest.

Dawn Chang, the director of the Department of Land and Natural Resources, was nervous during her agency’s budget briefing with Finance. She apologized for her dry throat and joked that she might need to visit the restroom.

But Finance members treated her and her staff with respect even as they had serious questions about invasive species, public safety, stream management and fees for park use. It was a solid informational exchange between inquiring legislators — the House typically assigns freshmen legislators to Finance to learn the ropes — and knowledgable agency heads.

Yamashita, in only his second year as Finance chair, had a steep learning curve last session, which played a part in the rupture in budget negotiations last year. He is quiet and polite by nature, and averse to speaking to the media. He is respected, but he is not feared.

But Yamashita has grown in the role this session. He was front and center at House leadership press conferences following major floor votes. Standing near him always is House Speaker Scott Saiki, who clearly keeps a close eye on the budget himself.

Senate President Ron Kouchi seems to trust Dela Cruz implicitly on the budget and will frequently single him out for praise during floor sessions. Senate leadership rarely meets with reporters, something they used to do on a regular basis.

Table Talk

WAM and Finance differ in other important ways. While each is the largest committee in its respective chamber, WAM includes some of the most outspoken senators including Kim, Lynn DeCoite and Michelle Kidani. Troy Hashimoto, who replaced Gil Keith-Agaran late last year, is already emerging as a vocal legislator, especially when it comes to his home island of Maui.

WAM also invites subject matter committees to budget briefings, including the Senate Energy, Economic Development and Tourism Committee when another agency, the Department of Business, Economic Development and Tourism, presented its budget. I can see the logic in that, but the approach lengthens the briefings, sometimes leading to delays and rescheduling.

Finance does not invite subject matter committees. And before Dela Cruz took over WAM, his predecessor, Jill Tokuda, used to hold joint budget briefings with Finance, then led by Luke. That saved a lot of time, as departments and agencies now have to make separate presentations.

But it’s the personalities of Yamashita and Dela Cruz that most determine the course and actions of their committees. I can’t recall seeing the Finance chair get angry at anyone speaking before his committee, but I can’t say the same for the WAM chair.

At a March WAM hearing on HB 1800, for instance, Dela Cruz clashed with Paul Mow, the chief of staff for Honolulu Prosecutor Steve Alm, over proposed funding cuts. It was a sharp exchange, with Dela Cruz ending talks and Mow leaving with a pained look.

It was not an unusual exchange for a WAM hearing.

In February the senator took on the Green administration, raising concerns that the state would be on the hook for more expenses related to the Maui wildfires than the governor had budgeted for. Dela Cruz also complained that the administration appeared to have no housing strategy, focusing instead on a temporary shelter program.

But just a month later Yamashita declared that the state did indeed have enough cash to help finance the recovery effort for Maui while maintaining state operations without major cuts. Several Capitol insiders told me neither the House nor the administration believed Dela Cruz’s concerns were well-founded.

The House passed the budget March 13, and Yamashita allowed a number of his Finance members to praise the work in floor speeches. The Senate passed the budget April 4, with Dela Cruz speaking at length on the floor about the work along with WAM Vice Chair Sharon Moriwaki.

There were still differences to work out in conference committee. But by April 23, the budget — which now awaits Green’s consideration — was ready for final approval and the weary members of WAM and Finance led the conference room audience in applause for completing the hard work.

And for once, both money chairs seemed happy.