Jade Butay: A new director takes on the challenges facing the state Department of Transportation

Jade Butay does not come from the engineering background of many of his predecessors as state transportation director. But he knows business and finance, and if the experience of recent years is any guide, the public-private partnership is a model that can figure in many transportation projects.

Butay, 46, was born in the Philippines but emigrated to the U.S. with his parents, brother and sister. A Radford High School alumnus, he went on to earn his bachelor’s degree from the University of Hawaii at Manoa and his master’s degree in business at Babson College.

His first job was at the state Department of Business, Economic Development and Tourism but he then served as a congressional aide to Neal Abercrombie, moving over to the Department of Transportation when the congressman became governor.

Butay is interim director, pending his confirmation in the coming legislative session. He, like past Director Ford Fuchigami, favors applying a businesslike approach to administration of airports, through establishing a public-private corporation to run them.

Airport projects loom large at DOT these days. There’s been a facelift to the Ewa concourses, with more improvements to restrooms and other renovations to come over the next two years.

In addition to the Consolidated Rental Car Facility being built at the Daniel K. Inouye International Airport, a similar project is underway at Maui’s Kahului Airport. Other neighbor island airport projects include Kona’s terminal and a renovation of the ticket lobby in Lihue.

Neighbor islands also are seeing cruise terminal improvements in Hilo and a fire suppression project for the port; plans for an expansion of storage in Kahului Harbor; and projects finishing up the Daniel K. Inouye Highway and the widening of the Queen Kaahumanu Highway on Hawaii island.

Lahaina Bypass, Maui’s long-stalled project, is due to be finished in the spring, and DOT will leverage federal dollars in four bridge projects on Kauai.

These projects matter to people in their everyday lives, Butay said.

“Although DOT is transportation, I know it is so much more to people,” he said. “It’s economic vitality, health care, education and everything everyone uses our facilities for. That is why we are working on projects that can be implemented faster so people can enjoy the benefits sooner.”

Question: How old were you when you came to the U.S. from the Philippines?

Answer: I was 12. … That age is one of the toughest times to move … I think they did a study, and they found out that sometimes it matters when you emigrate. Usually at that age is supposed to be the toughest, because you’re kind of in-between. … It was (difficult), especially because I had very close friends in the Philippines.

Q: Are you concerned about funding cuts from the federal government, with the new administration?

A: We are … (but) at least the Trump administration, he wants to build infrastructure. DOT is all about infrastructure. …

He’s been traveling all over Asia, and he’s seen the kind of facilities that they have, and he sees what we have, and he’s trying to streamline the process, how we can get projects done much faster.

Q: Any thoughts on the airlines’ proposal to establish a private authority to manage the airports? Could that be resurrected?

A: DOT supports the airport corporation proposal and will advocate for its passage in the upcoming legislative session. The Airports Division generates its own revenue without using traditional taxpayer money.

With that in mind, we want to operate the system like a business in order to remove the bureaucracy and allow improvement projects to start sooner and adapt quicker. An airport corporation would allow us to meet with an appointed board of directors year-round, rather than just meeting with the state Legislature during its five-month session.

Any CEO operating a multibillion-dollar operation would find difficulties if they were only able to meet with their board five months out of the year. We believe there is a better and more efficient way to do business at our 15 airports statewide, which is why HDOT, the airlines and concessionaires agree an airport corporation is a positive step forward.

Q: How is the department working to improve its efficiency at accessing federal funds for its projects?

A: The Ige administration has made tremendous strides in spending down the federal pipeline, which was at a record high of $940 million in 2010 and is now at $550 million, the lowest point in more than 16 years.

The Highways Division has made so much progress the Federal Highways Administration awarded Hawaii an additional $41 million, which is reflected in the $550 amount, in funds to use on our highways infrastructure, the highest amount amongst all other states our size. We will continue to make positive progress in reducing the pipeline and are on our way to reaching the agreed-upon goal of $450 million in fiscal 2018.

Q: Are there any highways improvements that could help connect Central Oahu commuters to the rail system?

A: We are working with the city on the park-and-ride facilities, in that the city will build the stations and HDOT will maintain the roadways in our jurisdiction that connect the park-and-ride facilities to our state highways system. 

DOT is also working to connect the rail stations via bike and pedestrian access. For example, we are improving Kamehameha Highway over the Roosevelt/Kipapa Bridge to provide 5-foot shoulders in both directions. This will provide bicycle access from Mililani to the rail station on Kamehameha Highway.

Q: What can help address the harbors capacity and deferred maintenance?

A: The Harbors Modernization Plan is a series of systemwide capital improvements worth $850 million. The centerpiece of the plan is the Kapalama Container Terminal project in Honolulu with an investment of $448 million, which features a new 84-acre container yard and 1,800 linear feet of new berthing space.

Plans are underway, a contractor has been selected for phase one and groundbreaking is scheduled for January. When complete, it will allow 50,000 truckloads per year to move directly between facilities, alleviating traffic around Sand Island and Nimitz Highway.

Q: How do you view the homelessness challenge? How will DOT prioritize efforts to protect infrastructure from damage?

A: We realize there are homeless encampments popping up and we are monitoring and working with the governor’s office to continue outreach in order to connect the homeless to services, not just move them around from place to place.

We also want people to know the DOT right-of-way is not the place to be camping. Funding has been made available thanks to a pilot program from the state Legislature that allows crews to respond to unpermitted camps.

We have prioritized the areas overlooking the H-1 Freeway and adjacent to Nimitz Highway for trespassing enforcement and cleanup operations. DOT has coordinated a multi-agency effort to address the concerns under the Nimitz Viaduct, which includes the safety of those living in unpermitted areas of the Moanalua Stream.

We work with various agencies to ensure proper outreach into the areas, availability of supportive services and shelter for all displaced, sufficient resources to carry out the enforcement properly and timely, and scheduled maintenance actions to keep the area clear after the enforcement action. We will continue to address health and safety issues that arise and we will focus on more locations as service provider resources are available.

Q: How has your past DOT experience prepared you for the top job?

A: As the DOT deputy director for five years I worked to support the governor and director’s vision to improve quality of life now. …

Even though DOT is a large and complex organization, I won’t need a long learning curve to understand its operations and challenges as I have been involved in many of the major issues, operational objectives and programs. …

I believe deeply in DOT’s mission and Governor Ige’s vision. The opportunity to serve and work as part of a team and to leave the department better off than I found it is what motivates me.