The annual construction and operating budgets for the $5.27 billion Honolulu rail project advanced Thursday at the City Council, with Council members agreeing to restore $291 million that previously had been trimmed from next year’s rail construction budget.
The construction and operating budgets for rail, as well as a separate bill authorizing the Honolulu Authority for Rapid Transportation to borrow the $291 million to finance construction of the rail system, now go to the full Council for final approval.
Daniel Grabauskas, executive director of HART, last week announced the agency had found ways to trim $1.57 million out of HART’s proposed operating budget.
"We are working to be good stewards of taxpayers’ dollars. Taking a hard look at our own budget is part of that," Grabauskas said May 3 in announcing the budget reductions. "HART will continue to look for additional ways to be fiscally prudent and to deliver Oahu’s rail system on time and on budget."
Most of the savings in the operating budget came from delays in debt service charges. Those costs can be delayed because HART now plans to put off much of the borrowing until later, which will delay the need to make interest and other payments on the debt.
The Council Budget Committee on Thursday approved Grabauskas’ pared-down, $21 million version of the operating budget. The budget incorporated $222,360 in cuts sought by Councilwoman Tulsi Gabbard to eliminate three information specialist jobs.
The committee also approved HART’s $491 million construction budget for the fiscal year that begins July 1. The construction budget includes $291 million in borrowed money that HART plans to use to help finance construction.
Council Budget Chairwoman Ann Kobayashi last month amended the construction budget to exclude that $291 million. Council members said they want the city to obtain a commitment for federal funding for the rail project before borrowing any money to finance rail construction.
The $291 million was restored to the rail construction budget Thursday as the committee also added language prohibiting HART from borrowing the money or signing contracts that encumber the money until the federal government commits to help fund the Honolulu project.
The city is seeking $1.55 billion from the Federal Transit Administration to help pay for the project.
The planned rail line is the largest public works project in Hawaii history, and would extend 20 miles from East Kapolei to Ala Moana Center. It is scheduled to be completed in 2019.
