Hawaii Lawmakers Cut Over $1 Billion From School Construction Budget

Replacement for Lahaina’s Fire-Destroyed School Among Projects Rejected
HONOLULU, Hawaii – State lawmakers have dramatically reduced the Hawaii Department of Education’s (DOE) school construction funding request, slashing more than $1.4 billion from the department’s original $1.9 billion proposal, including funding for rebuilding King Kamehameha III Elementary School, which was destroyed in the Lahaina wildfire.
Instead of granting the full request, lawmakers approved just $489 million for school facilities improvements statewide, prompting concern from the DOE and the Board of Education.

“It is significantly less than what we had asked for,” said Jadine Urasaki, DOE’s Public Works Administrator, during a Thursday Board of Education meeting.
The proposed two-year budget was meant to address a wide range of needs, including major repairs, renovations, and new campus construction. The legislature’s decision leaves many key projects unfunded, including a $70 million replacement for King Kamehameha III Elementary and $130 million for a new school in East Kapolei.
Concerns Over Project Management
State Senate Ways and Means Chair Donovan Dela Cruz said the legislature's decision was rooted in longstanding concerns about how efficiently the DOE manages taxpayer money for capital improvement projects.
“They don’t really have a good track record overall, in making sure that projects are getting done in a timely manner and that the money is actually getting spent,” Dela Cruz said.
He argued that while the need for schools is clear, lawmakers need to see better execution before granting such large sums.
“The problem is, both organizations have not proven to be able to build in a timely manner,” he said, referring to both the DOE’s public works division and the newer School Facilities Authority, which may soon assume control over certain projects.
Lahaina Dispute Highlights Infrastructure Challenge
One major point of contention surrounds the location of the new school in Lahaina. The DOE favors undeveloped land at Kuia, which it says the local community supports, while Dela Cruz and some lawmakers back the Pulelehua site, where FEMA has already constructed a temporary campus.
“The new location has no infrastructure,” Dela Cruz said. “And so that means the cost would escalate automatically because there’s no sewer, there’s no water, there’s no electricity, it’s in the middle of a community that is not even built yet.”
In contrast, the Pulelehua site is already hooked into utilities and accessible roads, potentially lowering construction costs and accelerating timelines.
DOE Plans to Advocate Further
Despite the budget cuts, DOE leaders remain committed to pushing for the rejected projects.
“We are still committed to advocating for these essential projects, and we are going to be including them in the supplemental budget,” Urasaki said.
She also acknowledged the need to rebuild credibility with lawmakers and improve coordination.
“We still remain committed to strengthening our partnership and restoring their confidence and trust as we continue on this transition,” she told the board.
Looking Ahead
With deferred maintenance and capacity needs mounting across Hawaii’s public schools, the reduced funding could have long-term impacts on overcrowded campuses and delayed modernization. Lawmakers and education officials now face the challenge of balancing urgency with accountability, as they debate the best way to fund and manage the future of Hawaii’s school infrastructure.
Originally reported by Daryl Huff in Hawaii News Now.
The smartest construction companies in the industry already get their news from us.
If you want to be on the winning team, you need to know what they know.
Our library of marketing materials is tailored to help construction firms like yours. Use it to benchmark your performance, identify opportunities, stay up-to-date on trends, and make strategic business decisions.
Join Our Community