Testimonies received from BFED Committee 04-14-2026

Pelletier has to go. Giving him additional authority or resources would simply put more taxpayer money into a department that has already demonstrated serious leadership failures. During his tenure there have been multiple officer-involved shootings, the loss of an officer in the line of duty, and the deadliest wildfire in modern American history under the county’s watch. Before coming to Maui, he was also a senior official in Las Vegas during the period that included the worst mass shooting in modern U.S. history. At some point, leadership has to be judged by results—and the record here raises serious questions about competence and accountability.

Agenda Item: BFED-1 – FY2027 Budget / Bills 55-67

Chair Sugimura and Members of the Committee,

I am submitting testimony as a Maui resident who is trying to understand the direction of the County’s financial policy and what it means for people living here day to day.

The budget discussion before you is not small. Maui County is now operating at roughly a **billion-dollar annual budget**, and the agenda includes **authorization of approximately $195.8 million in new general obligation bonds under Bill 57.**

Borrowing at that scale deserves very clear public explanation. Bonds are not free money. They are long-term obligations that residents ultimately repay through property taxes and other county revenues. Before approving nearly $200 million in additional borrowing, the public should see exactly which infrastructure projects are essential and which projects are discretionary.

At the same time, the Committee is considering **Bills 66 and 67**, which would dedicate **at least 20 percent of Maui County’s Transient Accommodations Tax to environmental, climate, and sustainability-related funds.**

These proposals represent a major policy decision. Earmarking tourism tax revenue into specific revolving funds removes flexibility from future budgets. Once funds are dedicated by formula, that money cannot easily be redirected to other needs such as infrastructure, staffing, or disaster recovery.

I want to be clear that I am not necessarily opposed to environmental protection or climate planning. Maui’s natural resources are one of the reasons people live here and visit here. However, the County must balance those priorities with its basic responsibilities.

Residents currently see several practical problems on the ground:

• infrastructure projects that remain on capital improvement lists for many years without completion
• slow permitting processes that delay housing construction
• drainage and flooding issues that repeat during major storms
• county departments reporting difficulty hiring and retaining engineers and other technical staff

In fact, recent public discussion has highlighted that departments responsible for infrastructure and disaster recovery are struggling with staffing levels while the County budget continues to grow.

That raises an important question for residents: before creating additional dedicated funds and programs, should the County first ensure that its core departments are adequately staffed and capable of delivering the services residents rely on?

Another concern with earmarked funds is that they often expand over time. Once established, revolving funds can develop their own administrative structure, grant programs, and spending priorities. Without careful oversight, the result can be a growing number of specialized funds layered on top of the general budget.

Maui County has gradually moved in this direction over many years, particularly since the administration of Mayor Alan Arakawa and later Mayor Tavares, with increasing emphasis on environmental programs, sustainability initiatives, and policy-driven funds tied to tourism revenue. Each initiative may have merit individually, but collectively they shape the overall structure of government spending.

Residents are left trying to reconcile two realities:

• County government spending continues to increase.
• At the same time, departments report staffing shortages and difficulty delivering basic infrastructure services.

Those two things should not occur simultaneously without careful examination of how public funds are being allocated.

If the Council moves forward with Bills 66 and 67, I would strongly encourage clear safeguards, including:

• full transparency on how tourism tax funds are spent
• measurable outcomes tied to environmental and climate programs
• regular public reporting so residents can see the results of those investments

Ultimately, residents want the same thing the Council wants: a County government that protects Maui’s environment while also delivering reliable infrastructure, responsible budgeting, and efficient public services.

Before expanding new funds or committing significant borrowing, it would be wise to ensure that the County’s core operations are functioning effectively and that existing programs are producing measurable results.

Mahalo for the opportunity to provide testimony.
Edward Codelia, Maui Resident