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After six years, the City and County of Honolulu’s Office of Economic Revitalization is ceasing operations next Friday, Aug. 14
The closure was announced Friday and comes after the Honolulu City Council and Mayor Rick Blangiardi clashed over funding after an audit that found OER was not meeting all of its goals
The Honolulu City Council stripped the office of $1.5 million, or 15 positions, in the 2026-27 $4.9 million city budget, which Blangiardi later vetoed
On July 8, the city council overrode his veto and approved the budget. An official statement from the mayor said in part:
“The Honolulu City Council made a reckless and shortsighted decision to override my line-item veto and effectively dismantle the Office of Economic Revitalization by eliminating 15 jobs and stripping the department of its ability to carry out the work the people of Oahu asked us to do.”
OER said the remaining six of 24 full-time employees will transition to different departments across the city
Due to the closure, the following programs have been suspended indefinitely:
- Kona Low business recovery grants
- $4M in direct grants to Kona Low affected businesses on Oahu
- Economic development representation
- City staff and representation in statewide/national economic development initiatives
- Comprehensive small business support
- All direct door-to-door business outreach and community Small Business Connections hubs (Honolulu, Aiea, Kapolei, & Waianae) offering business resources and guidance.
- Idea2Biz business incubation program in underserved communities
- Sponsorships for community small business events
- Workforce development support
- All workforce development programmatic and funding support at the City level.
- This includes building career pathways in emerging sectors, funding to attract talent for high-demand City jobs, City funding for reskilling and AI programs, connecting residents to quality jobs, and contributing to statewide workforce development advisory boards.
- Regenerative tourism support
- All tourism sector support at the City level.
- This includes advancing community-driven tourism and stewardship models, investing in agri-tourism, placemaking, and cultural experiences, and coordinating a five-year Oahu Tourism Strategic Plan.
- Innovation and tech support
- All local innovation and tech sector support at the City level.
- This includes kickstarting innovation projects in the City and the community, securing private and federal grants, and expanding broadband access, digital equity, and technology-sector programs.
A list of grants and projects that will continue under the direction of their new city departments is available here
OER said during the last six years, the office advanced more than 30 major initiatives, built partnerships with more than 200 organizations and directly served more than 12,200 beneficiaries through capital investments and capacity-building programs supporting Oahu’s small businesses, farmers and working residents
- Mayor vetoes budget cuts to Office of Economic Revitalization
- Council passes budget over mayor’s veto threat
- Honolulu mayor threatens budget veto over cut to economic revitalization office
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