Honolulu residents currently pay a special surcharge on their general excise taxes to help pay for the $5.26 billion Honolulu Rail Project. This surcharge is expected to raise a total of $3.36 billion. Former Governor Ben Cayetano has stated that if he is elected as Mayor he would end the rail project and use the money from the surcharge to pay for his Bus Rapid Transit program which he is calling FAST for Flexible Affordable Smart Transportation. Cayetano has stated that FAST would cost approximately $1.5 billion out of which city tax payers would pay $990 million, the state $210 million and the federal government $300 million.
However, supporters of the Honolulu Rail Project are questioning if Cayetano would be able to transfer funds specifically set aside for the Honolulu Rail Project and use it for a different transit program. According to the 2005 law that created the surcharge, the money raised must be used for construction or operation of a “locally preferred alternative for a mass transit project.” furthermore, it specifically prohibits use of the money raised to “support public transportation systems already in existence prior to the effective date” of 2005. Furthermore, if the rail project is abandoned, it may cost the state about $1.55 billion in federal funding.
Cayetano doesn’t see a major challenge with this law and even believes that the city’s legislature would be willing to release some of the fund for other projects like fixing the city’s water and sewer systems. Cayetano also argues that the federal funding is not guarantied and it is much more likely that the federal government would give the state $300 million as opposed to $1.55 billion. Cayetano stated, “I think it’s bad policy to chase that kind of money just for the sake of chasing that kind of money and build something that will have a permanent and bad effect on the character of our city.”
Kirk Caldwell, the other candidate for mayor, made a written statement about Cayetano’s FAST proposal. Caldwell wrote, “It is difficult to respond seriously to something that has not been vetted by any third parties and is so utterly lacking in detail on construction plans, costs and timelines. There is no detail whatsoever provided as to how he has arrived at his cost estimates and assertions. No backing data. No conceptual or technical drawings. Nothing. It’s clear to me that this has been cobbled together purely for political purposes and not to address Oahu’s critical transportation needs. Honolulu voters deserve better.”
Source: Honolulu Star Advertiser, 10-16-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
