Council to consider increase in bus fares
By Gordon Y.K. Pang
Advertiser Capitol Bureau
Just one month after bus fares went up on O'ahu, Honolulu City Council members are expected next week to take up debate again on another fare increase — and they are not certain there is enough support to pass it.
The proposed increase was prompted by a statement by Mayor Jeremy Harris yesterday morning saying he would offer a bill to the Council that would raise fares, but only "if the Council wishes me to do so." In the afternoon, Council Chairman Gary Okino said he intended to put on Wednesday's regular Council agenda a bill being drafted by the Harris administration.
The bill will propose an increase to generate enough revenue — about $6 million — to prevent a 6 percent reduction in routes and layoff of about 40 bus drivers.
According to Okino, fare increase proposals have not been finalized. But initial discussions with the Department of Transportation Services have centered on hikes for monthly passes, but not for individual ride fares, except possibly Express! rides.
The standard individual fare rose by 25 cents, to $1.75, on July 1.
It is not clear how a fare increase might affect an Aug. 26 strike date set by the 1,380 drivers, mechanics, clerks and supervisors represented by the Hawai'i Teamsters and Allied Workers Local 996. A loss of drivers for an estimated 241,000 daily trips has raised fears that island transportation could be crippled.
The reduced service and accompanying layoffs have been one of the key bargaining issues for TheBus workers. Union officials declined to comment on the situation yesterday, and O'ahu Transit Services, the contracted operator of TheBus, could not be reached for comment.
Solutions sought
The possible fare increases drew mixed reaction from Council members.
"It depends on the variables, but the Council wants to see the routes restored," Okino said. "Almost all the Council members want to see some kind of solution to restore the routes. And we see that it has to be some kind of a fare increase."
While he acknowledged there could be some effect on contract negotiations, Okino stressed that "we're only going to address the fares so we have enough to restore routes," and not all the demands made by the union.
Of the roughly $6 million sought under the bill, about $4.5 million would restore what was trimmed from OTS' budget from the previous year. Okino said the remaining $1.5 million would help pay for medical premiums and other benefits OTS has asked union members to give back from the existing contract.
"The Council's effort is not intended to avert a strike. The intent is to restore service to the community," Okino said.
Harris noted that fares cover less than 30 percent of the cost to run TheBus, with the rest subsidized primarily by property taxes and other income in the city general fund.
"Bus revenues have been going down, so if we are going to avoid a reduction in bus service, then bus riders will need to pay about 3 percent more of the cost," Harris said.
Council Budget Chairwoman Ann Kobayashi said the administration should have warned council members during budget deliberations in the spring about the potential effects of a $4.5 million cut.
"I asked them if bus service would be cut, and we were told the bus system would be made more efficient," she said.
While police, fire and other agency officials made it clear they needed more money than was budgeted by the administration, "we didn't know that OTS wanted more money," she said. "We could have increased (fares) a little more, or whatever it takes to prevent the cutting of services."
Kobayashi said she was reluctant to support another fare increase, even to maintain service.
"The bus riders just took an increase a month ago. What security do they have that a month later we won't increase it again?" she said.
Councilman Rod Tam was also concerned about a second fare increase. "I don't want to raise them again," he said. "I'm not convinced that this would be a good methodology to take care of the problem."
Tam said he wanted to see new city auditor Leslie Tanaka review TheBus revenues and expenses.
Councilwoman Barbara Marshall said she was "very open" to options for restoring service. "I'm real concerned for bus passengers, and we're not sending a good message at a time when we're trying to decrease car use," she said.
Contingency plan
Meanwhile, Gov. Linda Lingle said she and her staff were looking at what the state might do in the event of a bus strike.
"While I am very reluctant to get involved with any sort of labor negotiations that are going on, it's a bigger issue than that here," the governor said. "It's an economic issue and a social issue."
Harris said the city had developed a strike contingency plan. He also noted that the city cannot get involved in the labor contract negotiations because TheBus is run by a private company.
Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or at 525-8070.
