Latest news with #FullFundingGrantAgreement
Yahoo
08-06-2025
- Business
- Yahoo
Officials expect federal funding to continue for Honolulu rail project
The city's rail project has a 'binding contract ' to continue to receive federal funding despite the Trump administration's threat to pull an estimated $4 billion from California's high-speed train project. U.S. Sen. Brian Schatz, D-Hawaii, said in a statement that the so-called full-funding grant agreement between Honolulu's rail project and the Federal Transit Administration 'is a binding contract between the FTA and the City and County of Honolulu.' 'We expect both parties to continue to adhere to the provisions within the contract, ' Schatz said. 'We will continue to work with the FTA and the City to make sure the milestones are met and the remaining federal funding is obligated as outlined in the FFGA.' Since 2017, the FTA had withheld $744 million in rail funding following years of construction delays and skyrocketing budgets. The federal financial spigot finally turned on in 2024 after the route was cut by two stations, rail service began in 2023 and the state Legislature allowed each county to charge a new 3 % hotel room tax, which Oahu now uses, in part, to ensure a flow of city funds for its Skyline rail project. After the first payment of $125 million arrived in April 2024, HART received an additional $250 million Aug. 15 by awarding the construction contract on the final planned half-mile, overhead rail segment and City Center station in Kakaako, said Lori Kahikina, HART's CEO and executive director. 'At this time there are no concerns regarding the remaining federal funding committed through the amended Full Funding Grant Agreement, ' Kahikina said in a written statement. 'HART continues to have strong relationships with our Hawaii congressional delegation and the Federal Transit Administration, and will continue to work closely with them on matters pertaining to the rail project.'—RELATED : She expects another $125 million by completing the rail station and guideway at Daniel K. Inouye International Airport, followed by another $125 million after completing HART's utility relocation project for the City Center station and guideway, followed by an additional $119 million in fiscal year 2027. The full 19-station, 18.9 mile route from East Kapolei to the Civic Center station in Kakaako is scheduled for completion in 2031. The acting head of the Federal Railroad Administration last week wrote California's high-speed rail authority that it should expect to lose its $4 billion in federal funding following years of delays and billions in cost overruns.
Yahoo
15-03-2025
- Business
- Yahoo
HART's $968M budget under Honolulu City Council review
The Honolulu Authority for Rapid Transportation this week responded to City Council questions over its $968.3 million budget package proposed for fiscal year 2026. HART's budgets, expected to take effect July 1 if adopted, show marked increases to debt service on the project's loans as well as increased labor costs for the over-$10 billion Skyline construction. They show other higher costs as well. Rail officials indicate that due to the awarded contract of $1.66 billion for City Center Guideway and Stations, or CCGS, meant to take the rail line to Kakaako by 2031, the project's capital budget is expected to rise from $482.4 million in the current fiscal year to more than $526.9 million for 2026—a 9.2 % increase. In August, HART awarded the CCGS contract to Los Angeles-based Tutor Perini Corp. to design and build Skyline's last 3-mile segment to Halekauwila Street. But rail staffers say because of the large contract—about $360 million above original estimates—certain rail-related projects might need to be temporarily deferred. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Still, HART Executive Director and CEO Lori Kahikina told the Council's Budget Committee on Wednesday that Tutor Perini is 'moving quicker than I anticipated.' 'It's a design-build, so I thought they would take about a year alone just to do designs, ' she said. 'You should see columns starting to come up later this year.' 'They are going to start in Iwilei—kind of work out all the kinks and bugs—and they may have a second heading starting in Halekauwila, ' she added. According to HART's budget information, 2025's total operating budget will rise to $174.7 million—an increase of $36.4 million, or 26.3 %, over the rail agency's current $138.3 million spending plan. Of that amount, $169.7 million—or 97 %—is composed of debt serv ice expenditures. That includes $129 million in principal payments on outstanding general obligation bonds—an increase of $40.8 million over the current fiscal year, budget reports indicate. But the agency notes $40.3 million in interest payments on debt equates to a $4.6 million decrease compared with the current fiscal year. Conversely, total labor costs are budgeted at $1.5 million—a $368, 153 increase, or 32.4 % higher than the current year. HART's main funding sources—local taxes and federal funding—total over $1.25 billion for fiscal year 2026, budget plans indicate. The federal funding source for 2025 totals $125 million, or about 10 % of the project's funding budget, compared with $518.3 million, or about 41 %, derived from local taxes, budget reports state. Amended in February 2024, the Federal Transit Administration's Full Funding Grant Agreement initially provided $1.55 billion to construct the city's rail project. Currently, Kahikina noted, $744 million is the amount outstanding from that agreement. 'When we complete City Center's Utilities Relocation package IV—that's the Dillingham corridor—we're eligible to apply for the remaining $125 million, ' she said. 'To date, we have received—in calendar year 2024—$125 million, ' she added. 'And then when we awarded that Tutor Perini contract, that was an additional $250 million, so we received $375 million in calendar year 2024.' Two more FTA disbursements of $125 million—or $250 million in total—are expected to be gained by HART, she said. Another $119 million—not tied to any project milestones such as stations—also remains. 'So the total outstanding is $369 million, ' Kahikina explained. Rail construction money is largely gleaned from the state's general excise tax, which is projected to be $371.4 million in 2025 ; transient accommodation tax, estimated at nearly $90 million ; as well as the city's own TAT at $57.2 million, among other sources, according to HART. A $10 million city subsidy is among other funding sources comprising the remaining amounts. The proposed operating and capital budgets will fund 72 full-time equivalent positions. As of February, 47 people were employed at the rail agency. It is authorized to have a total of 98 positions, HART reports indicate. HART also proposes a $793.6 million capital budget for next fiscal year above the current $574 million—a nearly 38.3 % increase. The capital budget includes future contract awards for Skyline's Pearl Highlands Transit Center as well as an H-2 freeway access ramp. A planned Waipahu Station makai entrance—originally earmarked for $14 million—is now being proposed at $20 million, the CIP indicates. At the meeting, Council Chair Tommy Waters queried HART officials on potential impacts—namely involving the Trump administration's freeze on federal funding—that could affect FTA and the city's rail project. 'Have you folks noticed any change in the team that you're working with over at FTA, and do you anticipate any of that occurring ?' Waters asked. In response, HART Deputy Executive Director and CFO Rick Keene said, 'We haven't heard anything, so we think that's good news.' 'We hope that this next $125 (million ) that's budgeted in fiscal 2025 for the completion of segment two will not come about until the end of the year, ' he said. 'We're hopeful that by then the dust will have settled a little bit.' Moreover, Keene alluded to talk 'in the media ' about the Republican-controlled Congress' possible defunding of California's long-planned high-speed rail system. 'And out of Washington, to us, there's been clear distinctions made between that situation and our situation. So at this point we haven't heard anything, ' he added. 'If we hear otherwise, we will let everyone know, but right now we still feel confident in the numbers.' Members of the public also spoke at the budget hearing. Donald Sakamoto, president of Citizens for a Fair Americans With Disabilities Act Ride, testified that he participated in the Office of the City Auditor's recent report over Honolulu's Skyline rail operations. That audit, in part, asserts Skyline has less than adequate features for the disabled around its stations. 'So I'm worried about construction of phase two and phase three of the rail stations, and the surrounding areas to be more accessible for our ADA persons like myself, who's blind, and others, ' he said, 'especially with the 35th anniversary of the ADA law this July 26, 2025.' 'So I look forward to the report from HART on the projection of their rail station, and the rail project and the ADA accessibility, ' Sakamoto added. Meanwhile, Kahikina noted city rail's second segment—from the old stadium, past the airport, to Kalihi—will not be open for public service by October, as was stated by the city during a Council budget hearing Monday. 'HART has consistently said we will transfer the assets to (the city Department of Transportation Services ) before the end of the year, ' she said. 'I'm trying to temper expectations with you folks and the public, so we are still saying 'before the end of the year.'' 'However, it is prudent for DTS and (city Department of Budget and Fiscal Services ) to budget ' for HART, Kahi kina added. 'The earliest we could possibly open is October, so we should budget for that, but just understand right now it's still the end of the year.' HART's latest operating and CIP budgets—to be introduced as Bills 26 and 27, respectively—are scheduled to be heard Wednesday as first-reading measures during the full Council's meeting.
