A bill I introduced this week calls for the delay in implementation of the half percent increase in the general excise tax if the Honolulu City Council does not select its locally preferred transit alternative before December 31, 2006.
The excise tax increase, set to go into effect on January 1, 2007, is the largest tax increase in the history of Hawaii and the public deserves to know how the city plans to spend this money. The City Council owes the public a careful review of the rail options and we should not increase a tax without a plan on how it will be spent and if it will be enough.
I am concerned that there is a quick rush to judgment without any review of the enormous costs involved. This past Monday, the mayor held a press conference on the Alternatives Analysis for Mass Transit in Honolulu. On Wednesday, the official plan was formally presented to the Honolulu City Council. And on Thursday, the City Council Transportation Committee committed itself to rail.
Any rail system will be Hawaii’s biggest public works project ever and how the City Council can make judgments about this system in 24 hours is incredulous. We have spent more time discussing a park name than this system.
A full-build out of a 28-mile rail system will cost upwards of $6.1 billion while a truncated 20-mile system will cost at least $4.2 billion. The City currently is assuming that Honolulu will receive $1 billion in federal funds and further assumes a robust 2 percent economic growth rate for Honolulu over the next 16 years to garner $3 billion in excise tax money.
If the federal government fails to give Honolulu $1 billion, a very optimistic number, or if Hawaii ever goes into recession sometime over the next 16 years, Honolulu will not have enough money to build even the truncated rail system, let alone the full 28-mile route. There are clear benefits to a rail line, but the public needs to know if the numbers add up.
Charles Djou is a Honolulu city council member representing the district spanning from Hawaii Kai to Waikiki.
