Lawmakers Adjourn Without Deal To Pay For Rail
UPDATED:听Honolulu Mayor Kirk Caldwell hopes for a special session, but the Legislature is done for now after a final day shake-up in leadership.
Honolulu is on track to run out of money this year to finish building its elevated rail line after the Legislature concluded its 2017 session without reaching agreement on how to subsidize the project.
The lack of consensus leaves the 20-mile-long rail line, which is way over budget and far behind schedule, with a shortfall of about $3 billion.
In response to a question about how the city would pay for rail without the state鈥檚 help, Mayor Kirk Caldwell said he鈥檚 focusing entirely on trying to get lawmakers to hold a special session to fund rail.
鈥淢y preference is to put all my energy and focus in getting the House and Senate back together to pass a bill,鈥 Caldwell said. 鈥淚鈥檓 not going to put my energy or focus on anything else until we know that鈥檚 no longer an option.鈥
Caldwell joined the rest of Hawaii鈥檚 mayors Wednesday to urge Gov. David Ige to extend the session, but Ige said he did not want to do that unless the two chambers could strike a deal.
The city only has enough money to complete the project to Middle Street, with an expected cushion of about half a billion dollars.
The lack of consensus in the Legislature on the rail funding bill is a shocking end to five months of legislative hearings and deliberations during which legislators consistently said the rail funding bill was a high priority.
The lack of agreement between members took its toll, including a big shake-up of legislative leadership. House Speaker Joseph Souki from Maui resigned from his position as speaker Thursday and his colleagues chose Rep. Scott Saiki from urban Honolulu to replace him.听
Meanwhile, the state Senate is on track to replace Ways and Means Committee chairwoman Jill Tokuda with Donovan Dela Cruz. Tokuda gave an emotional speech Thursday, and Senate President Ronald Kouchi said May 12 will be her last day leading the powerful money committee.
Mayor Clashes With Legislative Leaders
As of Thursday, the House and Senate have extremely different views on how to fund the nearly $10 billion project.
The Senate prefers to extend the general excise tax surcharge on Oahu for 10 years until 2037 to help complete the rail project, an option backed by Caldwell and the tourism industry. The Senate Thursday because it couldn鈥檛 reach agreement with the House, but the proposal could be revived in a special session.
The House backed a competing that would have allowed the surcharge to be levied for just one more year, to 2028, and increase the state鈥檚 hotel tax for 10 years. Lawmakers deferred the measure Thursday. That bill can鈥檛 be heard until 2018.
Caldwell said that he doesn鈥檛 know if the leadership upheavals in the House and Senate will help his case. But Senate Majority Leader J. Kalani English and the newly elected speaker, Saiki, criticized the mayor鈥檚 inconsistent estimates of the rail project.
听Saiki told reporters that the Legislature hasn鈥檛 received accurate financial data from the city regarding the rail project throughout the legislative session. 听
鈥淲hat the House of Representatives has asked the city for from the beginning of the session was for accurate and specific numbers,鈥 Saiki said. 鈥淭he city and HART have changed the numbers whenever they have submitted them.鈥
Caldwell flatly denied Saiki鈥檚 claim, and told reporters that Saiki funding rail back in 2005.
But English agreed with Saiki and was even more critical, saying that the lack of accurate financial estimates from the city took a toll on lawmakers.
鈥淲hy couldn鈥檛 the city have taken care of what they needed to take care of?鈥 he said. 鈥淧art of the reason it ended up in this situation of course is that the city never gave us good numbers, numbers that we could trust, numbers that we could work with, they kept on changing. Even up until yesterday it was changing.鈥
English had a message for the city: 鈥淚f you give us bad numbers, you are not going to get a good result from the Legislature. Bottom line is we need to know the real numbers.鈥
The mayor noted Thursday that the cost of financing the project depends on interest rates and how the project is being funded. He also said听that delays in building the rail project could drive up costs more than $100 million each year.
Special Session? Who Knows?
On Thursday, as the clock ran out, it was unclear whether a special session would be called to deal with the issue.
For the House鈥檚 part, Saiki, the new speaker, said there needs to be 鈥渁 cooling off period鈥 so the two sides can reflect on what to do with rail.
Kouchi said that allowing lawmakers to go home and spend time with their families will 鈥渕aybe allow the temperatures to come down and then we鈥檒l have a chance to come back and talk.鈥
鈥淲e need to take some time to regroup and get our energies back together so that we can think on this fresh,鈥 English echoed.
Kouchi apologized for not reaching a solution for funding rail and said that he鈥檚 hopeful the Senate will seriously consider using the hotel tax at least in part to fund rail.
He agreed with Tokuda on that issue, and noted that many members鈥 objections were due to the fact that the idea hadn鈥檛 received a public hearing.
鈥淚f we hold the proper hearings then perhaps the Senate will be able to move closer to the position of the House,鈥 he said.
Still, many Senate members are convinced that raising the hotel tax will hurt Hawaii鈥檚 economy. The tourism听industry has lobbied against doing so.
鈥楶ulling A Suzy鈥
Tokuda gave an emotional speech on the Senate floor Thursday, anticipating that she would听be ousted as chair of the Senate鈥檚 money committee. She started to cry as she thanked her staff.
鈥淚鈥檓 going to stop because I鈥檓 totally pulling a Suzy right now,鈥 she said in reference to former state Sen. Suzanne Chun Oakland鈥檚 tearful farewell last year, prompting the chamber to erupt in laughter.
Tokuda quoted from 鈥淪tar Wars,鈥 saying, 鈥淵ou can鈥檛 stop change any more than you can stop the suns from setting.鈥
Kouchi told reporters after the Senate session concluded that Tokuda will remain chairwoman of the Ways and Means Committee until May 12 so that she can finish the committee鈥檚 work.
He said Dela Cruz will then take over for Tokuda unless the Senate decides differently.
Kouchi seemed sad that Tokuda had lost her post and said he would like to give her another role in the Senate if possible.
Goodbye Souki, Hello Saiki
As for the House, Saiki said reorganization discussions are pending. But he also expressed how grateful he was for Souki having always challenged him and others to take risks and do what鈥檚 best for the state.
The vote to appoint Saiki speaker was 39-9, with three members absent.
It came after Reps. Marcus Oshiro, Calvin Say, Jimmy Tokioka and Sharon Har 鈥 all Democrats on the outs with the current leadership 鈥 expressed strong disapproval of replacing Souki on the last day of session.
Rep. Gene Ward, a Republican, said much the same. He then left the floor, refusing to vote.
But Saiki said the leadership change was driven in part by recognition that newer, younger members with different backgrounds and experiences want to see reform in the House.
Asked if rail was also a factor in the reorganization, Saiki said no.
Souki did not appear during Thursday’s session, and issued a letter that said in part:
Five years ago I did not seek this position, but was asked to lead this body in order to bring all members鈥 voices to our deliberations. I hope that to some extent I was able to do that. I was humbled to lead this body, and it has been an honor to serve the people of this state.
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Anita Hofschneider is a reporter for Civil Beat. You can reach her by email at anita@civilbeat.org or follow her on Twitter at .
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Chad Blair is the politics editor for Civil Beat. You can reach him by email at cblair@civilbeat.org or follow him on Twitter at .