Sequestration might sap rail funding in 2013, Schatz finds

The deep spending cuts coming out of Washington, D.C., known as sequestration could mean a reduction in federal dollars spent this year on Hono­lulu’s elevated rail project, U.S. Sen. Brian Schatz said Tuesday.

But any money lost in 2013 would be made up in subsequent years, and the Federal Transit Administration still plans to honor its full $1.55 billion spending agreement over six years to help complete the $5.26 billion transit project, Schatz added.

The remarks by Schatz, who was appointed in December to replace the late U.S. Sen. Daniel Ino­uye, came in a telephone interview after he met privately Tuesday with Federal Transit Administrator Peter Rogoff. Schatz sits on the Senate Commerce, Science and Transportation Committee and said he was concerned about the $85 billion sequestration’s potential effects to rail but left the meeting feeling assured.

FTA is "fully committed to the project and fully committed to fully funding it. I am more convinced than ever that this project is going to happen," Schatz said. "It’s important to remember that there has never been a full funding grant agreement that has never been honored completely" by FTA.

The Honolulu Authority for Rapid Transportation has anticipated the FTA will provide $250 million for Hono­­lulu rail in 2013 under the agreement signed by the agencies this past December.

Schatz said it is "too early to tell" whether this year’s funding will be trimmed, and he declined to estimate how much the potential cut could be.

HART Chief Executive Officer Dan Grabauskas said he has heard the sequester could reduce funding for new transportation projects such as rail this year by about 5 percent. HART is overseeing the 20-mile rail project, designed to run from East Kapo­lei to Ala Moana Center.

"We could weather a 5 percent cut in this fiscal year and still stay on schedule and on budget," Grabauskas said Tuesday. Any more and HART might have to draw from the $356 million in cash it has on hand or borrow earlier than anticipated — but it needs to wait and see what happens, Grabauskas said.

"Nobody knows where Congress will be tomorrow," he said. "At this critical time we’re fortunate Sen. Schatz" was able to meet with Rogoff ahead of some "tough decisions" from the FTA.