Informing the Legislature that on May 13, 2025, the Governor signed the following bill into law: HB1035 HD1 SD1 CD1 (ACT 038).

HB1035, now law, provides funding for collective bargaining costs and salary adjustments for state employees in Hawaii. It allocates specific amounts from general, special, and federal funds for the 2025-2026 and 2026-2027 fiscal years to cover these costs across state departments. The largest allocations - over $4.5 million in the first year - support the Hawaii Health Systems Corporation for collective bargaining agreements, while smaller sums cover the Department of Education and judicial branch. This bill ensures state agencies can meet existing obligations under collective bargaining agreements and salary adjustment plans without creating new policies.