Some homes are still left standing in a Lahaina neighborhood on Aug. 10. Mayor Richard Bissen says Maui County is facing a $31 million shortfall due to the Aug. 8 wildfires, primarily because of a loss of property taxes from homes that were lost. — The Maui News / MATTHEW THAYER photo

Maui County is facing a $31 million shortfall due to the wildfires — primarily in lost property taxes — and the county administration is seeking the County Council’s approval to amend the current budget.

Mayor Richard Bissen told Council Chairwoman Alice Lee in a letter on Sept. 28 that after discussion between his office and department directors, he is informing the council of the revenue shortfall for all funds except the Bikeway Fund in the fiscal year 2024 budget.

The administration is anticipating a shortfall of $19.5 million in the General Fund; $5 million in the Water Fund; $3.24 million in the Sewer Fund; $1.86 million in the Solid Waste Fund; $838,731 in the Highway Fund; $529,074 in the Environmental Protection and Sustainability Fund; and $240,308 in the Liquor Fund, the letter said.

Bissen is recommending a $7.82 million cut to capital improvement projects from $151 million to $143 million.

He is also recommending a $23 million cut to the operating budget, from $920 million to $897 million.

One of the largest shortfalls will be in real property taxes, which the administration expects to be around $19.5 million less.

Bissen said in August that fiscal year 2024 real property taxes will be waived for properties “completely destroyed” by the wildfires.

On Friday, the Maui County Council referred a bill to the Budget, Finance and Economic Development Committee to exempt 2024 real property taxes for damaged properties that are uninhabitable because of major exterior or interior damage caused by the fires.

The state has said more than 2,200 buildings in Lahaina alone have been damaged or destroyed, with the majority residential.

The council also referred Bissen’s proposed budget cuts to the budget committee. There was no discussion on the bill.

Lee said after the daylong council meeting that she supports reducing CIP funding but not operating funds.

“To me, the key is deferring major CIP projects we do not need at the moment,” the chairwoman said Friday evening.

She said that many of the departments are busy and probably cannot handle the projects anyway due to the fires. Lee said she is not saying cancel the projects, but put them on hold.

“The thing I do not believe in is reducing operations,” she said. “We are stretched thin as it is. If anything we are going to be short with personnel.”

Lee added that she would not cut social services, especially now. The proposed cuts, according to documents submitted to the council, include programs for senior citizens and homelessness programs.

“We do not want to reduce social services, this is a must,” Lee said. “We have to maintain a high level of social services, especially under the circumstances.”

Lee said she has asked Bissen to hire a professional certified public accountant to help the county receive as much funding as it can from federal agencies. She said the application processes “are daunting,” and the CPA will be able to keep track and follow up with federal agencies.

Both Lee and Council Vice Chairwoman Yuki Lei Sugimura, who also chairs the budget committee, said after Friday’s council meeting that they are still waiting on more information from the administration to be able to begin to make adjustments on the budget.

Sugimura did not yet have a date in mind to take up Bissen’s proposal in committee.

The proposed reduction, as noted by Bissen, will reduce the overall county 2024 fiscal budget from $1.07 billion to $1.04 billion.

* Staff Writer Melissa Tanji can be reached at mtanji@mauinews.com.