A new report from the University of Hawaii Economic Research Organization argues that expanding Hawaii’s childcare tax credit could partially pay for itself by helping more parents stay in — or return to — the workforce, even as the state faces mounting concerns over childcare affordability, shrinking provider capacity and staffing shortages.

The report arrives as Hawaii lawmakers continue debating proposals to expand the state’s Child and Dependent Care Tax Credit, or CDCC, amid broader cost-of-living pressures and a childcare system many providers and advocates say is already stretched thin.

“This is something that is a recurring issue at the (Legislature) every year,” UHERO researcher Dylan Moore said. “There’s been some talk in recent years about this particular tax credit, so I think that’s one reason we wanted to focus on it — to sort of bring some maybe non-obvious insights to the conversation.”

The report examines two competing proposals to expand the CDCC. House Bill 2306 would raise the maximum credit to $5,000 per child while targeting lower- and middle-­income households through a steeper income phaseout. The bill stalled this session, but a companion measure with similar provisions was submitted to Gov. Josh Green after clearing both chambers. A separate proposal, SB 2683, would have preserved broader eligibility at higher income levels but failed to pass.

For Pearl City resident Janel Correia, childcare has become one of the largest recurring expenses for her family as they raise their 4-year-old daughter, who attends Keiki Care Center of Hawaii.

The 37-year-old said her family currently spends about $990 a month on childcare and has had to carefully budget around the cost alongside housing, groceries and other bills. Although the family received assistance through the state’s Preschool Open Doors program during their daughter’s final year of preschool, Correia said the expense still significantly affects their financial flexibility.

“Reliable childcare has been essential for our work schedule and our daughter’s development, but it definitely impacts our overall financial flexibility,” Correia said.

Correia said balancing work schedules and childcare arrangements remains difficult, citing both affordability and availability remain major challenges for working families, particularly when families face long waitlists and limited options that fit their schedules and budgets.

“There have been times where finding an open childcare slot was difficult due to long waitlists and limited options, especially for programs that fit our schedule and budget,” she said.

Correia said expanded tax credits or subsidies could ease financial strain and provide families with greater flexibility around work hours, scheduling and career opportunities.

“When childcare takes up such a large portion of a family’s budget, financial support can have a meaningful impact on both affordability and workforce participation,” she said.

Under current law, Hawaii families can claim up to $2,500 per child for up to two children, though benefits decrease for households earning above $50,000 annually.

Moore said policymakers should look beyond the immediate cost of childcare subsidies and consider how lower childcare expenses could influence parents’ decisions about whether to remain in or reenter the workforce. He said expanded childcare support may enable some parents who otherwise would not work to take jobs or stay employed, potentially generating additional tax revenue for the state over time.

The report argues that expanded credits could partially offset their costs by increasing workforce participation and generating additional state income and general excise tax revenue.

Moore said middle-income households may be most responsive to expanded childcare credits because they often earn enough additional income to offset childcare costs and taxes without losing substantial public benefits.

For lower-income households, however, the report found that “benefit cliffs” tied to programs such as SNAP, Medicaid and other assistance can create situations where taking a job or increasing work hours actually leaves families financially worse off.

“It’s not because there’s anything about low-income households that we would think makes them not responsive in principle,” Moore said. “It’s that you’re fighting a bit of an uphill battle because the childcare subsidy policy is not the only policy that affects these households.”

He said some modeled households in the report increased income dramatically but still lost disposable income after accounting for childcare expenses and reductions in benefits.

“I think there’s something fundamentally surprising about the idea that you could have a household … that increases household income by 80% and that they could end up worse off in terms of their amount of disposable income than before,” Moore said.

At the same time, UHERO researchers warned that expanded subsidies alone may not solve Hawaii’s childcare crisis if provider capacity cannot expand alongside demand.

“Maybe you can’t solve this by just providing people with money,” Moore said. “Maybe money is not enough — at least money given to the parents to pay for the cost of the program is not enough if there aren’t enough spaces to go around.”

That concern mirrors what providers and advocates across Hawaii are already seeing.

Lt. Gov. Sylvia Luke, who is on indefinite leave, has led the state’s Ready Keiki initiative since 2023. She said Thursday over the phone that Hawaii has taken a “multifaceted approach” combining public preschool expansion with subsidies aimed at helping working families afford care. The state also has expanded eligibility for its subsidy program to families earning about $180,000 for a household of four and plans to extend coverage to 2-year-olds.

Still, providers and advocates say major gaps remain, particularly for infant and toddler care, workforce recruitment and full-day services.

Kerrie Urosevich, executive director of the Early Childhood Action Strategy, said tax credits alone are not enough to address the state’s affordability challenges. She pointed to timing and structure, noting that families typically pay childcare costs upfront and only receive credits later at tax time, limiting their impact for households already under financial strain. She also said eligibility rules and filing requirements can be barriers for some families.

Urosevich said tax credits can help offset costs but should supplement, not replace, direct subsidy programs like Preschool Open Doors or the Child Care &Development Fund, which reduce or eliminate upfront expenses.

Advocates also point to workforce shortages, which have intensified as public preschool programs offer higher pay than many private providers can match.

“The providers who are equally as trained in our private sector, they’re opting to go to the public pre-K program because it’s higher pay,” Urosevich said.

Cheryl Cudiamat, director of Keiki Care Center of Hawaii, said her preschool is licensed for five classrooms but currently operates only three because of staffing shortages.

“It is definitely harder to find lead qualified teachers or good staff in general,” Cudiamat said.

She said private centers frequently lose workers to the state Department of Education because public schools offer stronger salaries and benefits.

The UHERO report points to those same structural issues as a major factor that could limit the effectiveness of expanded childcare tax credits.

Moore said expanding subsidies without simultaneously increasing childcare capacity risks driving up tuition costs rather than meaningfully expanding access.

“I think it would be naive to only pursue this subsidy-based solution without trying to simultaneously tackle those other issues,” he said.

Still, both the UHERO report and childcare advocates emphasized that improving childcare access has broader long-term economic benefits beyond immediate affordability.

Research increasingly links affordable, high-quality childcare to stronger workforce participation, particularly among women, as well as better long-term educational outcomes for children.

“You want to think about how this policy that’s being proposed will change people’s behavior,” Moore said. “If you don’t account for that sort of benefit, you can really make a mistake when you’re thinking about the costs and benefits of different policies.”

Luke said the state’s childcare and preschool expansion efforts are intended to outlast her tenure, with Ready Keiki serving as a long-term framework embedded in Hawaii’s budget and school planning rather than a single-term initiative. She said core components — including subsidy programs and new classroom development — are already funded and expected to continue beyond the current administration.

Those efforts, she added, are already underway and advancing through the Legislature, including ongoing Preschool Open Doors funding and planned classroom expansion. About 20 additional classrooms are expected to open in the coming school year, with more in development through public schools, charter schools and university partnerships.

Kendall Jenner and Jacob Elordi’s relationship has leveled up.

A source exclusively told Page Six that the couple’s romantic getaway to Hawaii has brought the supermodel, 30, and the actor, 28, even closer.

“Kendall really didn’t expect to be this into him this fast, but Hawaii kind of changed everything,” the insider said. “They got super close on that trip, and it definitely made their connection stronger. It’s becoming a lot more serious than she expected.”

According to the source, the “Kardashians” star is “really happy right now and loves how easy things feel” with the “Frankenstein” actor.

“Her friends and family can see how much she likes him,” the insider said. 

The source added that Jenner has especially enjoyed being able to spend time with her younger sister, Kylie Jenner, while also getting to know the men in their lives together.

The sisters were recently spotted on a double date with Elordi and Timothée Chalamet in Los Angeles last Saturday. Elordi appeared to be driving with Kendall in the front seat of a car, while Kylie and Chalamet sat in the backseat with the group’s friend, Renell Medrano.

“It’s been really fun for her and Kylie being able to hang out with guys who genuinely get along and fit naturally into their lives, because they honestly haven’t really had that in a long time,” the source told Page Six.

“Jacob’s just a really good guy,” the insider said. “He’s super respectful and easy to be around, and it’s becoming a lot more serious than she expected.”

Reps for Kendall and Elordi did not immediately respond to Page Six’s requests for comment.

As previously reported, Kendall was “a little hesitant at first” of striking up a romance with Elordi “because of the friendship” they share.

“They’ve known each other forever and run in the same circles,” the insider said, noting that while the two have been around each other for years, their dynamic has “definitely shifted” recently.

“They’ve actually been spending time together for a couple months now, just keeping it quiet,” the source explained. “They’ve just been hanging out more and seeing where it goes.”

According to the insider, the reality star approached the connection cautiously.

“Kendall’s really private so she’s taking it slow,” the source said. “She’s not the type to jump into something, especially with someone she’s been friends with.”

Kendall has previously been linked to NBA star Devin Booker, Bad Bunny and Harry Styles, while Elordi’s past relationships include Olivia Jade and Kaia Gerber.

On a recent Wednesday morning at the hula mound at Kuhio Beach, Susan Willick moved through clusters of sunbathers and tourists to a man sitting alone on a grassy rise in the middle of Waikiki’s busiest stretch of sand.

Amid the churn of visitors — families spreading towels, surfers heading out — he remained withdrawn and apart.

Willick, an outreach worker with the Waikiki Business Improvement District, knelt beside him and spoke softly. Minutes later, Dr. Louie Gangcuangco of Waikiki Health joined her, crouching to assess the man as Honolulu Police Department community policing officers provided data support.

As Gangcuangco checked on him, Willick began calling for a shelter bed. The man hesitated, then nodded. Within minutes, he agreed to go — first to Waikiki Health, then to a shelter.

It’s seldom this straightforward, but encounters like this underpin a broader strategy reshaping homelessness in Waikiki’s core. Homelessness there has dropped sharply over the past three years, driven by coordinated outreach, medical care and enforcement — even as encampments grow along nearby beaches, where jurisdictional gaps limit the city’s authority.

A point-in-time count on April 16 found 201 people experiencing homelessness across Waikiki and nearby areas, down from 251 in September 2022, according to WBID and the University of Hawaii. The steepest decline came along Kalakaua and Kuhio avenues and Kuhio Beach, where unsheltered homelessness fell about 91%.

The figures, from a biannual count with UH’s School of Urban Planning, are measured against a multi-agency crime reduction and social services strategy launched in September 2022 through the Safe & Sound Waikiki partnership that includes the mayor’s office, police, prosecutors and community groups.

WBID President Trevor Abarzua said the results reflect layered work combining outreach, healthcare and enforcement.

“When we compare the work we are doing with our mainland counterparts … the progress we are seeing is unprecedented,” he said. “A 91% reduction … is a national feat.”

Many of Waikiki’s homeless are transplants who like any other visitors to Hawaii are drawn there first, Abarzua said. WBID will pay for travel home if a vetted support system is in place.

A key piece is WBID’s street medicine partnership with Waikiki Health, which started a year ago and expanded to twice weekly in February. The program augments WBID’s own outreach programs —Willick is a dedicated outreach worker and some of the programs Aloha Ambassadors also provide similar services.

Gangcuangco said the medical program’s success relies on building trust.

“Some are skittish and walk away. But after they see us week after week … eventually it becomes something like ‘Hey, can you call my mom for me?’”

He connects patients to insurance, medication and care — sometimes treating them on the street. “Housing is healthcare — it’s really very important,” he said.

Willick, who lives in Waikiki and has worked there for more than a decade, said coordination has changed outcomes.

“I often refer to myself as a ‘walking referral booth,’” Willick said, adding that she walks weekly with Gang­cuango and the HPD community policing team, and also works with client navigators from The Queen’s Medical Center

“Ninety percent, yes,” she said when asked how often the homeless individuals that they encounter in Waikiki agree to take injectible psychotic medications. “It’s absolutely amazing seeing the personalities change.”

Waikiki resident John Deutzman, who tracks crime data and partners with the Safe & Sound Waikiki initiative, said the improvements in the Waikiki core are visible and measurable.

“I used to call it ‘area 666’ for a reason, and now it’s like heaven,” Deutzman said. “It’s been a dramatic improvement. The numbers don’t lie, and the University of Hawaii is tracking it in a very scientific way.”

Jurisdictional issues

While Zone 2 — Waikiki’s core corridor — dropped to just 10 people, the April count showed increases elsewhere. Zone 1, including Fort DeRussy Beach, rose to 57 from 49 in October 2025. Zone 6, which includes Ala Moana Beach Park outside the WBID boundary, climbed to 49.

“We’ve seen a 25% reduction in the entire radius, but the biggest reductions are in Waikiki’s urban core,” Abarzua said. “The data shows us where people are going, and we adjust strategy based on that.”

HPD Major Paul Okamoto said the increases reflect displacement pressures and limits on enforcement. Fort DeRussy falls under the state Department of Land and Natural Resources (DLNR), leaving Honolulu police without full authority to enforce park closures or camping bans.

A prior city-state right-of-entry agreement expired in 2015. Since then, the beach has become a refuge as enforcement tightened elsewhere.

DLNR said in an email that “Complaints about unhoused individuals sleeping and camping on the beach” prompted the original agreement.

DLNR “receives complaints … on a weekly basis from the public and the hotels, ” and has responded with joint operations.

“Since 2024, DLNR has been part of monthly cleanup operations” with state, city and military partners.

Still, DLNR acknowledges limits,”We consider cleanups successful when people move on … however, (we) cannot force people into shelters or programs. Sometimes they choose to return.”

DLNR communications director Andrew Laurence added that, “Governor Green’s administration remains committed to finding effective long-term solutions to aid individuals dealing with houselessness.”

DLNR is now working with the city on a new right-of-­entry agreement. The push for coordination is reflected not just in policy talks, but in how agencies operate together on the ground.

Officials from the Honolulu Department of Community Services (DCS) said in an email that the department “in coordination with other city departments and state agencies along with the Waikiki Business Improvement District and Safe & Sound Waikiki, continues to focus on compassionate triage navigation efforts that connect individuals experiencing homelessness to shelter, healthcare, behavioral health services, outreach, and housing resources … DCS and its community partners remain engaged in ongoing outreach … in Waikiki and surrounding areas.”

Carrot and stick

Okamoto said enforcement is necessary but not enough.

“We’re just one part of the solution,” he said. “In many parts of the country, enforcement is the only solution, and that doesn’t work — all we see is a revolving door.”

HPD officers work with outreach teams and ambassadors, using enforcement to steer people toward services rather than arrest. Six plainclothes community policing officers are assigned to outreach, with two to three on duty each shift.

“The people we come in contact with in Waikiki … are mostly mentally ill or suffer from substance abuse,” Okamoto said. “We need to get to the root of it… now they have hope.”

“Enforcement is important because it creates a stimulus to help people understand that we cannot live on the street … or live in the parks,” he added.

Okamoto said enforcement is done compassionately but meant to push people toward services.

Deutzman said conditions have improved but repeat offenders remain a challenge. “The weak link now is still the judicial system,” he said. “We do have repeat offenders.”

He said about 77% of those arrested in Waikiki show indicators of living on the street and his research of more than 1,000 misdemeanor/petty misdemeanor convictions in Waikiki shows the median sentence is two days.

Joint operations have reduced visible encampments, with tents at Fort DeRussy dropping to about two from 27 on April 16, Okamoto said.

Waikiki’s approach has drawn national attention, with Abarzua set to speak at a policy conference in Washington, D.C.

Still, he said the Fort DeRussy gap highlights the need for aligned authority. “We have service pipelines … But if you are going to say no … you cannot just sit on the sidewalk or live in the park.”

Deutzman said long-term success will depend on consistent enforcement, community cooperation, and deterrent design measures, such as installing dividers on park benches to prevent sleeping, removing picnic tables to discourage loitering, and using trash cans designed to prevent dumpster diving.

He added that relocating the entrance to St. Augustine by the Sea’s food ministry — from across the Waikiki Beach Marriott to a less-trafficked roadway — has created a less-disruptive environment. However, the change has drawn complaints from some residents of the nearby luxury Foster Tower.

“If you eliminate the hangouts piece by piece, the problem goes down … The problem starts to go away,” Duetzman said.