Informing the Legislature that on May 13, 2025, the Governor signed the following bill into law: HB1033 HD1 SD1 CD1 (ACT 036).

This bill (HB1033) authorizes specific funding for public employee compensation in Hawaii for fiscal years 2025-2027. It provides $13.9 million in general funds for collective bargaining cost items (including salary adjustments) for bargaining-unit employees in 2025-2026, increasing to $31.1 million in 2026-2027. Separate funding totals $2.2 million for non-bargaining employees in similar pay groups during the same period. The bill directs the state finance director to allocate these funds to relevant departments for salary adjustments and benefit costs, with unspent funds lapsing by June 2026/2027.