HONOLULU (HawaiiNewsNow) – The Honolulu City Council approved a $5 billion budget Wednesday that includes a $1.4 million cut to the Office of Economic Revitalization, prompting the mayor to threaten a veto.

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The mayor’s proposed budget and the council-approved plan differ little overall, but the reduction to the economic office created conflict between the two branches of government.

“To just take this thing down to nothing is going to hurt a lot of people, and I am not saying this is in a threatening way. This is going to be on you. This is illogical to me, so yes I will veto that,” Honolulu Mayor Rick Blangiardi said.

Budget chair Val Okimoto said the council is not eliminating the office.

“We are not defunding the Office of Economic Revitalization. We are right sizing to focus on the units that work,” Okimoto said.

Role of economic office

The Office of Economic Revitalization was conceived as a planning and coordination office for growth of ag tech and small business. During the pandemic and after recent floods, it became the agency with flexibility to get hundreds of millions in federal aid to families, small business and farmers.

City auditor Troy Shimasaki found that role delayed meeting most of its primary goals.

Council member Tyler Dos Santos-Tam asked the auditor whether the audit recommended eliminating positions within the office. The answer was no.

The issue led council members Tam, Augie Tulba and Matt Wyer to vote against the budget.

Police funding concerns

Interim Honolulu Police Chief Rade Vanic raised concerns that restrictions meant to reduce vacancies would make it harder to maintain patrols.

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“Last year, a similar unfunded requirement forced the department to redirect funding from core patrol and operational priorities. Those impacts were real,” Vanic said.

Council chair Tommy Waters said the budget still directs money to pay for 460 vacant police officer positions.

“It’s funded. It’s in your budget. I’m saying, can you use some of that vacancy money?” Waters said.

Council member Andria Tupola said the chief has flexibility to move funds from different categories to cover the department needs.

Okimoto defended the council’s priorities and blamed the mayor’s team for her decision about the economic revitalization office.

“They had failed to take the council’s suggestions seriously. As a budget chair, how can we allow a team to move forward if their coach is not receptive to making changes, does not possess a strategic playbook?” Okimoto said.

The mayor said he hopes to prevent the office from being reduced.

“If they were to succeed in this, despite our veto, if they were, it’s gonna be on their hands. There are going to be thousands of people affected by that,” Blangiardi said.

The council’s 6-3 vote to pass the budget is enough to override any veto. The mayor may still have the power to save the staff jobs and fund them from other sources.

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