Code Smaller Text and less space in Category Bar

This is your HTML:

<ul id="nav-cat" class="clearfloat">
<li class="cat-item cat-item-3"><a href="http://updatehawaii.com/?cat=3" title="View all posts filed under Events">Events</a>
</li>
<li class="cat-item cat-item-15"><a href="http://updatehawaii.com/?cat=15" title="View all posts filed under Financial">Financial</a>
</li>

This is very strange HTML, as each li item has a class name containing what looks like an ID. Does not seem right at all.

Anyway, in that case, you’ll just need to try and adjust the CSS the left and/or right padding for the relevant li items like this:

#nav-cat li {
       padding-left: 0;
       padding-right: 0;
}

Replace 0 with the value you want, and this will apply only to <li> item inside the item of the class “cat-item”: the <ul>.