Honolulu Mayor Kirk Caldwell presents his testimony as he joined other neighbor island mayors in going before state lawmakers to explain their legislative requests, Wednesday.
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Transportation network companies like Uber and Lyft practice “surge pricing” when demand for their services is highest. Hotels and airlines charge more during busy times.
Now Honolulu Mayor Kirk Caldwell wants state lawmakers to begin studying the idea of charging motorists a fee for driving on key roads during peak traffic hours, a concept known as congestion pricing that’s been in effect in London and other cities and was recently approved by New York state.
Caldwell told a joint hearing of the House Finance and Senate Ways and Means committees Wednesday that he is proposing the Legislature adopt a resolution asking Hawaii’s four counties to come up with a report that would look at how the concept of congestion pricing might work in their jurisdictions.
Studying congestion pricing further in Hawaii won’t make sense unless state lawmakers pass a resolution indicating some willingness to consider allowing the counties to impose a congestion pricing strategy and fee schedule, the mayor said.
Caldwell, whose second consecutive term as mayor ends at the end of the year and is barred from seeking a third, straight term, said he recognizes that the idea of congestion pricing will need to be discussed long after he’s gone, even if the resolution passes.
Several of his staff, including Deputy Transportation Services Director Jon Nouchi and Harrison Rue, the city’s transit oriented development administrator, visited cities where the concept of congestion pricing has worked.
Congestion pricing fees would force commuters to rethink how they travel and, hopefully get them out of their personal vehicles, Caldwell said. That would require a municipality to spend less on road improvements and other infrastructure.
“It saves taxpayers’ dollars in the long run but that discussion has to be had (on congestion pricing), otherwise it’s dead on arrival,” the mayor said.
The congestion pricing issue is listed first in the Hawaii Council of Mayors Package. But both Hawaii County Mayor Harry Kim and Kauai County Mayor Derek Kawakami said they’re not looking seriously at congestion pricing and supported the resolution to support their fellow mayors.
The concept is not new, even in Hawaii. In 2008, after seeing the concept take form in London, then-City Councilman Charles Djou introduced a resolution urging former Mayor Mufi Hannemann to look into congestion pricing. Other major U.S. cities also have been exploring the possibility. Hannemann’s administration rejected the idea, arguing that Oahu motorists did not have enough options for people to travel in and out of the city.
Also Wednesday, Maui Mayor Mike Victorino urged money committee members to extend the deadline for his county to impose a surcharge on the state’s 4% general excise tax for public transportation needs. Maui is the only county to not have such a charge.
While widely known as a key funding tool for Oahu’s $9.2 billion-plus rail project, Kauai County also took advantage of the taxing authority early on. In 2018, the Legislature passed a bill giving Maui and Hawaii counties until March 31 to adopt a surcharge. Victorino, who became mayor a year ago, told state lawmakers he’s taking responsibility for it not being able to happen by the current deadline.
“If you’re going to lambaste anybody, lambaste me,” he said.
Meanwhile:
>> Kim urged lawmakers to extend a general excise tax exemption on medical services performed within a group and private practices in order to address what he described as a collapse in health care due to a severe physicians shortage of 44% on his island, 24% statewide.
>> Kawakami called for study and design money to be given to the state Department of Land and Natural Resources to dredge Waimea River and provide regular maintenance of the river’s mouth.
>> Caldwell called for adopting bills that would incorporate electric scooters into the traffic code, and allow counties to charge a per-ride fee on Uber, Lyft and other transportation network companies.
>> Caldwell and Kawakami asked for an additional $25 vehicle weight tax charge, as part of annual vehicle registration, to deal with abandoned vehicles.
