Honolulu Takes a Leap Toward Financial Transparency
The City and County of Honolulu is on the cusp of a significant transformation in governmental accountability, as a landmark City Council bill mandating enhanced financial transparency is set to become law, even without the Mayor's explicit endorsement. Bill 76, introduced by Council Chair Tommy Waters, aims to create a more open and accessible system for the public to scrutinize the city's substantial annual budget and day-to-day expenditures. This initiative represents a pivotal moment in the ongoing dialogue between the city's legislative and executive branches regarding public oversight.
The legislation, which Mayor Rick Blangiardi has allowed to pass into law without his signature, requires the development and maintenance of a searchable, online database of city expenditures. This "open checkbook" system is slated to be free, accessible to the public, and updated at least monthly, with a deadline of January 1, 2027, for full implementation. The move is intended to bolster public trust and provide residents with unprecedented insight into how their tax dollars are being allocated.
Legislating Openness: The Genesis of Bill 76
Bill 76 emerged from a City Council push to increase transparency and accountability in municipal governance. Council Chair Tommy Waters, along with Council member Val Okimoto, introduced the measure with the stated conviction that "transparency and openness in government are fundamental principles of good governance that help drive and sustain civic accountability and promote public trust." The bill explicitly states that given the city's annual collection and expenditure of over a billion dollars for essential services, citizens have a "right to know how the city is spending its funds."
The legislation champions the creation of "user-friendly digital tools that expand public access to the city’s financial information," arguing that such tools can "augment public oversight, reduce waste, and improve the overall efficiency of government." This push for an "open checkbook" style system reflects a growing national trend toward digital governance and the belief that readily accessible financial data empowers citizens and potential business partners to better understand and engage with their local government.
Historical Context and Precedents
This isn't the first time Honolulu has explored making its financial data more accessible. As noted by Hawaii resident Natalie Iwasa in her testimony, the city saw an attempt to put budget information online in a spreadsheet format during former Mayor Peter Carlisle's tenure (2010-2013). However, that effort reportedly did not extend beyond his term, highlighting the challenges of sustaining such initiatives. Bill 76 seeks to institutionalize this transparency through a legislative mandate, aiming for a more permanent and user-friendly system than previous iterations.
The Honolulu Department of Budget and Fiscal Services (BFS) currently makes vast amounts of budget information available through annual and quarterly reports and through the Honolulu Record Collections page (HNL DOCS). For instance, the Fiscal Year 2026 Executive Program and Budget documents, including proposed operating and capital budgets, are publicly accessible. However, these documents often require significant effort to navigate for specific expenditure details across different dates. The "open checkbook" system aims to streamline this process dramatically.
The Mayor's Stance and Council Dynamics
Mayor Rick Blangiardi's decision to let Bill 76 become law without his signature indicates a potential divergence in philosophy regarding the immediate implementation and scope of such transparency measures. While the Mayor's office, through Communications Director Scott Humber, stated they were "closely examining the bill" and would "share our position with them and the public first through the Council’s committee process," the ultimate outcome was a non-signature. This is a familiar dynamic in municipal governance, where legislative bodies often push for greater disclosure, while administrations may express concerns about the practicalities, additional work for staff, or potential impacts on existing processes. Colin Moore, an associate professor at the University of Hawaii Economic Research Organization, described this as a "healthy system" where the legislature demands transparency and the executive may initially deem it "unnecessary" or "harder" to implement effectively. He also noted the political dimension, where transparency can be a tool for the legislature to gain more insight and leverage over executive spending decisions the Honolulu Star-Advertiser.
This push for enhanced transparency is part of a broader pattern of legislative action. The Council also recently advanced Bills 64 and 65, which require more detailed reporting on lapsed, or unspent, city funds from past budget cycles. These efforts are driven, in part, by concerns that mismanaged or unallocated funds could contribute to issues like staffing shortages in critical departments, such as the Honolulu Police Department (HPD), which reportedly had significant lapsed funding in FY 2024.
Financial Oversight and Budgetary Trends
The adoption of Bill 76 comes amid significant budgetary considerations for the City. For Fiscal Year 2026, Mayor Blangiardi submitted proposed budgets totaling $3.93 billion for operations and $1.21 billion for capital improvements Mayor's Office release. The city's overall budget for FY 2026 reached an approved $5.19 billion package after City Council deliberations, marking a 10.4% increase over the previous year Honolulu Star-Advertiser. These figures underscore the substantial public resources that the new transparency measures will aim to illuminate.
The proposed budgets highlighted key priorities including affordable housing, addressing homelessness, and bolstering public safety. The Capital Improvement Program (CIP) budget, in particular, allocates significant funds towards essential infrastructure like sewer projects ($533.7 million mandated by the consent decree), transportation, and public safety facilities. The transparency that Bill 76 promises will allow the public and businesses to track the allocation and expenditure of these considerable sums across various city departments and projects.
Lapsed Funds and Accountability
A related concern that has surfaced during budget discussions is the issue of "lapsed funds" – money appropriated by the Council that is not spent by the end of the fiscal year and reverts to the general fund. Council members have expressed a desire for greater insight into why funds lapse and how these decisions impact service delivery. For example, the Honolulu Police Department (HPD) saw approximately $15 million in its patrol division's funding lapse in FY 2024, an issue that Council Vice Chair Andria Tupola has linked to staffing shortages.
While city officials have sometimes argued that new reporting requirements create duplicative work, the Council's persistent focus on these issues, including the recent adoption of Bills 64 and 65 to mandate reporting on lapsed funds, signals a commitment to ensuring that appropriations are used effectively and according to legislative intent. The "open checkbook" system mandated by Bill 76 is expected to shed light on patterns of departmental spending, including any instances of significant fund lapses, thereby increasing accountability.
Business Implications
The implementation of Bill 76, creating a more transparent financial landscape for the City and County of Honolulu, carries significant implications for businesses operating within or seeking to contract with the city. For entrepreneurs and established companies alike, access to real-time or near real-time expenditure data can be invaluable.
Enhanced Procurement and Partnership Opportunities
Businesses looking to engage in city contracts or procure goods and services will benefit from a clearer understanding of departmental budgets and spending patterns. A transparent "open checkbook" can help potential vendors identify opportunities, understand budgetary allocations for specific projects, and ensure fairness in the procurement process. This can level the playing field, making it easier for smaller or newer businesses to identify where their services might align with city needs. Moreover, it can foster greater confidence in the bidding process, reducing perceptions of favoritism and increasing trust in city government as a business partner.
Strategic Business Planning and Investment
For companies that rely on city permits, licenses, or infrastructure improvements, direct access to financial data can aid in strategic planning. Understanding how the city is allocating funds for infrastructure projects, such as those related to transportation, sanitation, or housing, can inform business development decisions. Investors considering opportunities in Hawaii may also find this increased transparency reassuring, as it signifies a move towards more accountable governance, potentially reducing investment risks associated with opaque public finance.
Advocacy and Oversight
The enhanced transparency provided by Bill 76 empowers not only the general public but also business associations and advocacy groups. These entities can now more effectively monitor city spending, advocate for specific initiatives, and hold the administration accountable for fiscal responsibility. This can lead to more targeted policy discussions and potentially more efficient allocation of public resources, benefiting the overall business environment.
Challenges and Opportunities
While the move towards transparency is largely positive, businesses should also be aware of the potential challenges. The transition to a new financial reporting system may take time, and initial data accuracy and accessibility might require ongoing attention. However, the long-term outcome is an environment where businesses can engage with the city administration with greater foresight and confidence, fostering a more robust and accountable economic ecosystem in Honolulu.
Conclusion
Bill 76's journey to becoming law, even without Mayor Blangiardi's signature, marks a significant stride for Honolulu in its commitment to open governance. By mandating a publicly accessible "open checkbook" system, the City Council is ushering in an era of enhanced financial transparency, empowering residents and businesses alike to better understand and scrutinize public expenditures. As this system is developed and implemented, it promises to foster greater accountability, potentially improve the efficiency of government operations, and build stronger trust between the electorate and their elected officials. This legislative action underscores Honolulu's dedication to modernizing its fiscal practices and embracing digital tools for a more accountable future.
