Print This Article LaHood Compliments Honolulu on Rail Project, Sidesteps Funding Raid Question
Ray LaHood
BY GREG WILES
U.S. Secretary of Transportation Ray LaHood on Wednesday pronounced Honolulu’s $5.5 billion rail transit project a model program, but sidestepped questions about how his agency would react if state lawmakers raided $200 million funding for the effort.
LaHood, in what he said was the first visit to Hawaii by the head of the U.S. Department of Transportation, was briefed on the project at Honolulu Hale by Mayor Peter Carlisle and later toured Honolulu Harbor.
“This (the rail project) will put Hawaiians to work building a model transit program for the people,” said LaHood during a short press conference following the briefing. Hawaii’s full Congressional delegation and Gov. Neil Abercrombie attended the 45-minute presentation by Carlisle behind closed doors.
But LaHood declined to discuss a possible funding issue that have cropped up as state lawmakers attempt to deal with an almost $1 billion deficit. A bill that has passed the Hawaii State Senate and is pending before the House would require the city to give back millions raised for the project through a 0.5 percent state General Excise Tax surcharge.
Carlisle has opposed the measure, which would also authorize the issuing of state general obligation bonds to repay the city. Before being amended to take out specific amounts, the bill proposed taking $200 million of the funding and issuing $300 million of bonds.
Interest in the measure has risen as worries about the state’s economy and tax revenues have grown in recent weeks. The State Council on Revenues is to meet next week, at which time it is expected to lower tax projections, widening the deficit to more than $1 billion.
LaHood, while extolling the work city government had done on the rail project, declined to discuss his views about funding.
“We’re not going to be involved in debates about bills that have been introduced and ways to finance things,” said LaHood.
“There’s a clear path here how to fund this project. Everybody here knows that that is and I have no doubt they’ll follow that path and we’ll be making some very good announcements about this project after we have a chance to review all of the information that we’ve requested.”
The city is working on submittals to the department, including an updated funding plan that is needed for it to get $1.55 billion toward the project from the DOT’s Federal Transit Administration. The city’s prior budgets have included use of about $300 million in federal bus subsidies to finance the project.
Among people being briefed yesterday was FTA Administrator Peter Rogoff, who said he expects the city will turn in a financial plan that shows a strong commitment to revenues and credible funding sources.
He said using bus funding will cause his agency to evaluate whether maintaining bus service is viable into the future.
“I think a lot has been said about that, the city knows about that,” Rogoff said.
LaHood also responded to criticism that the city has awarded four major contract bids totaling more than $1.6 billion before it has final engineering done or a funding agreement in place with the FTA. Critics say the city cannot get accurate bids without a final design and that it has announced the bid awards with fanfare so that it appears the project is a done deal.
“Everything that’s been done here has been done correctly and done with our full authority,” LaHood said. “Everything has been done by the book.”
The city also received good news on the project yesterday when a state judge granted a city request for summary judgment in a lawsuit that alleged it did not follow state laws on protection of Native Hawaiian burials.
The city said the court also denied a preliminary injunction to stop the project until an archaeological inventory survey could be completed for the entire project.
At least one other lawsuit has been filed involving the project, which will run from Kapolei to Ala Moana Center when completed. Another group plans to announce the filing of a third lawsuit as early as next week.
The 20-mile project will also face a hurdle in Congress as Republicans press for cuts in Pres. Barack Obama’s fiscal 2012 budget. The Honolulu project is to receive $250 million if the budget is approved.
Sen. Daniel Inouye serves as chairman of the U.S. Senate Appropriations Committee. He said Wednesday that he has met with the Kentucky Rep. Harold Rogers, head of the House money committee, to talk about budget matters.
“I can assure you that when the matter comes before us I’ll be in constant touch with the Secretary (LaHood) and we’ll see to it that the funds are properly funded,” Inouye said.
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I don't quite understand why Obama's budget for Honolulu's rail is $250 million. What additional funds are to become available to make the $1.55 billion that the Fed will supposedly contribute? What is he backup plan if only $500 million is approved (that appears to be the most plausible with the Republican house and in 2012, the senate may also become Republican controlled too, hell, Obama may be out too)? I fear that it may be a done deal and the backup plan is to raise the real property or excise tax if both mayor Carlisle and governor Abercrombie are re-elected.
Which brings me to my last comment about mayor Carlisle's increasing the user taxes so everyone pays his fair share. It seems to me the automobile drivers are paying more than their fair share and being asked to contribute even more. What about asking the actual users of public transportation to pay more (like the ratio of Honolulu residents share to Federal government share of the rail...(6B-1.50B)/6B) or approximately 75% instead of the current 25%.