Legislature Schedules Special Session On Rail Funding In Late August
Hawaii lawmakers will convene for a week to figure out how to fund the rest of Honolulu’s over-budget project.
The Hawaii Legislature has scheduled a special session Aug. 28-Sept. 1 to try again to reach聽a deal on funding the remainder of Honolulu鈥檚 20-mile rail project, now estimated to cost $10 billion.
Senate President Ron Kouchi and House Speaker Scott Saiki sent a memo out Friday asking lawmakers to refrain from out-of-state travel during that week.
“Negotiations between the Senate and House have occurred for some time and are ongoing,” the memo says. “We are optimistic that the lead committee chairs have held, and will continue to hold, productive discussions.”
The special session’s purpose is to address rail financing and Honolulu’s adherence to its grant agreement with the Federal Transit Administration, according to the memo.
The FTA is kicking in聽$1.55 billion for the project. It could withhold some of those funds, particularly if the rail line has to stop聽short of its plan to go from Kapolei to Ala Moana Center. The project was expected to cost $5.2 billion just a few聽years ago.
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Saiki said last month聽that the聽city鈥檚 latest figures projected a $1.384 billion shortfall from聽now to 2024. That鈥檚 up to聽$200 million more than聽what聽the city had indicated during the regular session, which ended May 4.
The special session is subject to final confirmation and lawmakers agreeing on proposed language for a bill or bills to be discussed, the memo says.
The two chambers ended the session far apart.聽The Senate left聽with a聽聽to extend Oahu’s 0.5 percent general excise tax聽surcharge for 10 years, until 2037, to help complete the rail project. That鈥檚 the option Honolulu Mayor Kirk Caldwell and the tourism industry support.
The House pushed聽a聽聽that would have allowed the GET surcharge to be levied for just one additional year, to 2028, while increasing聽the state鈥檚 9.25 percent transient accommodations聽tax for 10 years.
Caldwell said in a statement Friday that he was “pleased” that the Legislature has scheduled a special session. He said he looks forward聽“to working with lawmakers in both the House and Senate on a sound financing mechanism that allows the city’s rail line to be built all the way to Ala Moana with all 21 stations.”
Read the legislative leaders’ memo below.
