RES 587 Draft 01 2024-2026 - Laserfiche WebLink

Home

HSAC Budget Overview and Justification FY 2026-2027 The FY 2026-2027 Hawaii State Association of Counties (HSAC) operating budget reflects a necessary and intentional shift toward long-term fiscal sustainability and alignment with the organization's expanded scope of work. Historically, HSAC budgets have not been structurally balanced and have consistently carried negative balances, relying on prior reserves or variable revenues to offset ongoing expenditures. Moving forward, it is the clear intent of the Association to adopt and maintain fully balanced budgets as a matter of sound financial practice. To achieve this, the proposed budget strengthens both revenue generation and expenditure alignment. On the revenue side, this includes a modest increase in county membership contributions as well as a strategic expansion of event programming. Event -related revenue has grown from $100,000 to $135,000 and now represents the primary source of HSAC's funding. While this strengthens the organization's financial position and reduces reliance on dues, it also requires significantly greater coordination, planning, sponsorship development, and administrative oversight to successfully execute multiple events each year. On the expenditure side, the budget includes necessary adjustments to administrative services and consulting support, both of which have remained largely unchanged since their establishment in 2022. These adjustments reflect standard inflationary increases as well as the substantial expansion in HSAC's responsibilities over that period. Since 2022, HSAC has evolved from a primarily coordination -focused body into a more active intergovernmental entity. This includes significantly expanded legislative engagement, ongoing coordination with legislative leadership, and direct support for joint efforts with the Speaker's Office on key statewide issues such as affordable housing, water policy, and taxation. In addition, HSAC has increased its event programming from a single annual conference to, on average, two or more events per year, each requiring planning, fundraising, stakeholder coordination, and execution. The proposed increases to the HSAC Consulting Fund reflect the growing demand for legislative strategy, policy coordination, and intergovernmental engagement. Similarly, adjustments to administrative services recognize the expanded role of the Executive Director in managing day-to-day operations, coordinating across counties and state partners, supporting national association activities, and overseeing the increased volume and complexity of HSAC events and programs. Taken together, this budget represents a balanced and sustainable financial plan that aligns HSAC's resources with its current responsibilities. It ensures that the Association can continue to effectively serve as a unified voice for the counties, facilitate intergovernmental collaboration, and deliver programs and services that benefit all member jurisdictions, while operating within a disciplined and transparent financial framework. Page 1