The URL can be used to link to this page

Home My WebLink AboutFY 2026 (Office of Economic Development) THE OFFICE OF ECONOMIC DEVELOPMENT FY 2026 BUDGET AND OPERATIONS SYNOPSIS Nalani K. Kaauwai Brun Director 1 Department: ECONOMIC DEVELOPMENT Fund: GENERAL FUND 1 2 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET Staffing and Positions: We are in the process of hiring an Economic Development Specialist IV, a critical position responsible for business support. While this role remains unfilled currently, the existing staff have stepped up to temporarily absorb some of the key responsibilities, including: • Broadband partnerships with the State and other counties • Waimea Theater repair projects • Business communication Their dedication and adaptability have ensured that essential projects continue moving forward despite the temporary vacancy. INCREASES: Several key funding increases are offset by cost-cutting measures in other areas. These increases focus on strategic priorities that align with our economic development goals: • SALARIES ($92,217) The Economic Development Specialist IV position, previously under the Mayor’s Office, has been transferred to the Office of Economic Development. This change reflects the operational reality that this role—focused on Creative Industries, Film, and Grants Management—has long been integrated into our department’s activities. In addition, our Benefits request has increased by $96,297 or 23.4%. To ensure we are adequately positioned to meet future obligations, we have made a strategic decision to increase the allocation of our Other Post-Employment Benefits account across the board. This will provide for flexibility in addressing any potential increases. • AGRICULTURE ($25,000) To support agricultural workforce development, we are expanding partnerships with high school Ag Academies and the AgVenture program. This initiative will provide students with hands-on exposure to farming as a viable career path. • ENERGY ($310,000) This investment is divided into two key projects: 1. Coconut Marketplace Mobility Hub ($110,000) – Supporting the Hanalei Initiative nonprofit in developing an East Side public transit program, leveraging lessons learned from the successful North Shore Shuttle Service. 2. Level 3 Charger Installation ($200,000 match funding) – A crucial federal grant match to expand Kauai’s EV infrastructure. • TOURISM ($158,500) Additional funding for the Coconut Marketplace Mobility Hub, totaling $268,500 for a one-year pilot program. This initiative will: o Identify and develop a dedicated East Side transportation leader o Engage stakeholders, including business owners and government agencies o Create an operational plan that promotes alternative transportation and reduces car dependency among visitors and residents • MANAGEMENT ($75,000) Community Stewardship: Continued support for wahipana (sacred places) through funding for community organizations that maintain County and State cultural sites. Funds are allocated biennially for tools, fuel, volunteer support, and essential maintenance needs. 3 • MANAGEMENT R&M ($60,000) Office carpet replacement. The existing carpet is original and beyond repair. • SUSTAINABILITY: ($15,000) Expanded funding for the Youth Climate Practitioners Program, allowing for increased participation and group transportation support. Decreases: Most decreases were due to shifting around priorities in line items. • KAUAI MADE (-$50,000) Branding initiatives launched later than expected this fiscal year, allowing us to roll over funds and reduce the need for additional allocations in the next cycle. • BUSINESS (-$25,000) Business Mentor Services-Funding reduction based on a lower-than- anticipated demand for mentorship services. 3. OPERATIONAL CHALLENGES • Federal Grants Management: Managing federal grant processes remains a challenge due to administrative complexities. However, we have designated a Federal Grants Lead, alleviating some of the burden on our accounting team. • Bi-Weekly Check Runs: Many nonprofit partners operate with limited cash flow, making it difficult for them to sustain operations while awaiting grant reimbursements. Our inability to issue weekly checks remains a challenge that impacts their ability to execute projects efficiently. • Covering some State Kuleana: Finding the right balance between the responsibilities of the State and County is essential, especially when determining which tasks to undertake and which to challenge. While we recognize the importance of getting the work done, we also understand that the State is challenged to fulfill these obligations. • Projects outside our traditional scope: As we engage in new types of projects, we encounter learning curves that require us to rely more on other agencies, leading to a decrease in our independence. • INCREASED WORKLOAD: Workloads are increasing in certain program areas, leading to concerns about burnout among staff. 4. OPERATIONAL HIGHLIGHTS FROM FY 2025 YOUTH CLIMATE PRACTITIONERS PROGRAM EXPANSION: • Increased student interest and participation in this hands-on sustainability program. • Enhanced curriculum and limited group transportation support to accommodate demand. COLLABORATION WITH OTHER OFFICES: • County Attorney’s Office – Developed standardized grant process templates and venue 4 agreements for use across departments. • Prosecuting Attorney’s Office & Housing Department – Successfully collaborated on the implementation of new grant-funded programs. STRENGTHENING COMMUNITY ENGAGEMENT: • Kui Kauai Storytelling Initiative – Launched to highlight OED-funded projects and increase public awareness via social media, newsletters, and digital platforms. • Website Enhancements – Updated Kauai.gov and KauaiForward.com to improve user experience and access to economic development resources. GRANT APPLICATION SYSTEM OVERHAUL: • Transitioned from Amplifund to a more user-friendly online system, addressing long- standing frustrations from applicants. • The new platform is currently being tested and has received positive feedback for its improved accessibility and ease of use. GROWING SUBJECT MATTER EXPERTISE: • Our growing subject matter expertise is enhancing team performance and increasing our influence within the community. • Staff members are developing a deeper understanding of government processes, which is resulting in greater efficiency and capacity building. • Strengthening internal and external partnerships is fostering improved understanding, trust, and the successful execution of projects.