The Honolulu Authority for Rapid Transportation’s $968.3 million budget package will roll for fiscal year 2026.
The City Council on Wednesday voted 8-0, with Council member Augie Tulba absent for that portion of the meeting, to approve HART’s $174.7 million operating budget.
On a subsequent vote, the panel voted unanimously on HART’s capital budget, which features a $793.6 million capital spending plan, above the current $574 million — a nearly 38.3% increase.
HART’s budgets, expected to take effect July 1 if signed by Mayor Rick Blangiardi later this month, show marked increases to debt service on the project’s loans as well as increased labor costs for the over-$10 billion Skyline construction.
The rail agency previously indicated other higher costs as well.
HART officials indicated that due to the awarded contract of $1.66 billion for City Center Guideway and Stations, or CCGS, meant to take the rail line to Kakaako by 2031, the project’s capital budget is expected to rise from $482.4 million in the current fiscal year to more than $526.9 million for 2026 — a 9.2% increase.
In August, HART awarded the CCGS contract to Los Angeles-based Tutor Perini Corp. to design and build Skyline’s last 3-mile segment to Halekauwila Street.
But rail staffers say because of the large contract — about $360 million above original estimates — certain rail-related projects might need to be temporarily deferred.
Meanwhile, the Council’s anticipated vote on the mayor’s proposed $5.14 billion budget package did not immediately occur.
Following daylong back-and-forth discussions, the Council took a meeting recess after 5 p.m. Wednesday. As of press time, no formal vote had been taken after disagreements erupted between the Council and city staff over budgetary issues.
Those issues included Council Chair Tommy Waters’ floor draft of Bill 22 — the executive operating budget — which looked to redirect previously appropriated but unused, or “lapsed,” city departmental funds to bolster the city’s sewer fund, as a way to defray the cost of anticipated multiyear sewer fee rate increases expected to start July 1.
“We have reduced approximately 33% of inactive vacancies balances across specific departments,” Waters said of his plan.
City staff balked, however.
Namely, city Department of Budget and Fiscal Services Director Andy Kawano disagreed with Waters’ plan, stating such an action could harm the city’s AA+ bond rating, particularly as the city tackles federally mandated, multibillion dollar upgrades to its sewer treatment infrastructure and related utilities.
During public testimony earlier that day, Laie resident Choon James was critical of the Council’s latest budget approval for rail.
“I feel like everyone knows that the rail is the white elephant in the room,” she said. “The city is now trying to uncover every (nook) and cranny trying to raise revenue for core services.”
She added “this is not fiscally sustainable in the long run for ordinary people.”
“And I wish to have this testimony for all of the finance bills there,” James said. “Unless we stop tax and spend, tax and spend and do some assessments here and there, local people who do not have a lot of money are going to get into so much trouble and price out of Hawaii.”
