Hawaii House advances committee budget report despite objections over tax repeal and delayed audit

The Hawaii House of Representatives adopted a standing committee report on March 16, 2026, moving the accompanying house bill (HSCR 1208-26, as amended) to second reading and placing it on the calendar for third reading.

Representative Kahaloa moved to adopt HSCR 1208-26 and Representative Morikawa seconded. The motion drew objections from several members who said the measure should not advance without clearer accounting for recent policy changes and outstanding reviews.

"I will cast a strong no vote on this state budget," Representative Garcia said, citing the tax repeal approved by the Legislature the prior week and saying the budget as presented risks reneging on promises to Hawaii residents. Representative Cochran said she could not support the bill "as written" because an audit of the Kahali initiative—required to be completed and submitted 20 days before the opening of session—had not been delivered and the state office of housing and homelessness solutions was requesting additional multimillion-dollar funding in the current budget.

Other members recorded reservations; the House proceeded to a voice vote and the presiding officer announced the motion carried. The transcript does not include a roll-call tally for the motion.

The debate combined general objections about the budget’s assumptions after a tax repeal with specific procedural concerns about missing audit materials tied to a housing initiative. Several speakers said they would reserve fuller comment for third reading, where the bill will return for more extensive debate and a formal recorded vote.

What happens next: HSCR 1208-26 (as amended) was placed on the calendar for third reading. Members noted the 48-hour notice requirement for that item. The bill will next appear on the House calendar for third reading and final floor consideration.