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HomeMy WebLinkAboutFY 2027 (Office of Economic Development) THE OFFICE OF ECONOMIC DEVELOPMENT FY 2027 BUDGET AND OPERATIONS SYNOPSIS Nalani K. Kaauwai Brun Director 2 Department: ECONOMIC DEVELOPMENT Fund: GENERAL FUND 1 3 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET The FY2027 Mayor’s request for the Office of Economic Development is $4,326,970, a decrease of $102,079 from the FY2026 Council-approved budget of $4,429,049. This decrease represents grant funds for domestic violence shelter and sex assault treatment programs being moved to OPA. This budget reflects a deliberate shift toward stabilization, execution, and continuity. Rather than introducing new program expansions, FY27 focuses on completing existing commitments, strengthening systems, and ensuring a smooth transition to the next administration. Key operational adjustments include: • Grant Realignment: Grant-in-Aid funding was reduced to better align awards with administrative capacity and ensure timely oversight and close-out. The emphasis in FY27 is on bringing all active grants current and closing out projects wherever possible. • Energy Funding Reallocation: Approximately $250,000 was reallocated from Energy Grant-in-Aid to Other Services to provide required matching funds for the Level 3 EV charging network project. This strategic shift ensures project readiness, leverages external investment, and avoids delays in implementation. • Mobility Transition: Leadership of the Coconut Marketplace Mobility Hub has successfully shifted from County management to a nonprofit community organization. The County will now serve in a secondary, supportive role. This transition strengthens community ownership while reducing long- term County operational burden. • Deferred Maintenance: Increased R&M funding addresses critical maintenance needs at the Waimea Theater, stabilizing County assets prior to administrative transition. • Travel Adjustments: Modest increases reflect substantial rises in hotel costs statewide and nationally, as well as the continued return to in-person training, compliance coordination, and statewide economic development collaboration necessary to maintain program quality and grant eligibility. • Staffing and Positions: We are in the process of hiring an Economic Development Specialist II or III. This position was previously assigned to manage the Kauai Made program and provide administrative backup. Kaua‘i Made responsibilities have since been distributed across existing team members, and the position is being restructured to provide cross-sector grant management support and backup for accounting and administration functions. We are currently interviewing candidates. Overall, the FY27 budget reflects a disciplined focus on: • Executing what is already underway. • Closing projects cleanly. • Positioning initiatives for long-term sustainability beyond the current administration. 3. OPERATIONAL CHALLENGES FROM FY 2026 Federal Grants Administration Federal compliance requirements continue to require significant coordination between program and accounting functions. OED carefully evaluates grant opportunities to ensure administrative responsibilities align with internal capacity. 4 Scope Management and Intergovernmental Alignment Balancing State and County responsibilities remains an ongoing consideration. The department continues clarifying program boundaries to avoid mission drift while ensuring essential community needs are addressed. Administrative Transition Preparation FY27 includes intentional documentation of processes, grant inventories, contract status summaries, and institutional knowledge capture to ensure a seamless transition. Emphasis is placed on bringing grants current, issuing direct awards efficiently, managing three competitive RFPs, and closing projects wherever feasible within the first five months of the fiscal year. 4. OPERATIONAL HIGHLIGHTS FROM FY 2026 Strengthened Grant Systems • Continued use of a streamlined grant application and review platform. • Standardized agreements and reporting templates developed in coordination with the County Attorney’s Office. • Improved monitoring and tracking processes to enhance compliance and transparency. Energy and Mobility Progress • Advancement of the Coconut Marketplace Mobility Hub framework. • Successful transition of project leadership from County management to a nonprofit community organization, with the County now serving in a supportive role. • Secured required matching funds to maintain forward movement of the Level 3 EV charging network. Youth Climate Workforce Development • Growth in participation in the Youth Climate Practitioners Program, introducing students to careers in climate mitigation and sustainability. • Expanded hands-on exposure to real-world projects and local industry partners. • Continued development of early workforce pathways aligned with Kauaʻi’s long-term resilience goals. Cross-Sector Team Resilience • Continued use of a mini-sector team structure to allow temporary coverage across program areas. • Increased cross-training and documentation to reduce operational vulnerability during transition. Countywide Invasive Species Coordination • Facilitated cross-departmental and interagency coordination to address Coconut Rhinoceros Beetle (CRB), Rose-Ringed Parakeets, and Little Fire Ants. • Supported collaboration among Parks & Recreation, Public Works, Solid Waste, the Mayor’s Office, State agencies, and community partners to strengthen unified response strategies. • Assisted with regulatory coordination and Department of Health permitting to ensure response actions remain compliant and legally sound. 5 • Improved alignment of funding, communication, and operational efforts across agencies to enhance efficiency and impact. Program Modernization: Sister City & Kauaʻi Made Sister City Program Strengthening • Digitized and organized historical Sister City documentation to preserve institutional knowledge and improve accessibility. • Drafted a formal policy framework to clarify roles, expectations, and procedures for Sister City relations moving forward. • Reconnected with all existing Sister Cities to renew communication and strengthen partnerships. • Completed the formal acceptance process for Mimasaka, Japan as Kauaʻi’s newest Sister City. Kauaʻi Made Program Refinement • Conducting a comprehensive review of Kauaʻi Made rules, regulations, and historical documentation accumulated over multiple years. • Consolidating and refining program guidelines to eliminate inconsistencies and improve clarity. • Developing updated processes to strengthen program integrity, streamline administration, and improve the experience for participating businesses. Business Sector Outreach & Accessibility • Hired a new Business Development Specialist to strengthen direct support services. • Expanded office presence into community locations such as Kalukalu in Kapa‘a to provide guidance closer to where businesses operate. • Increased accessibility for business owners who are unable to travel to the Civic Center during regular work hours.