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The Honolulu Advertiser

Posted at 12:41 p.m., Friday, April 2, 2004

House passes bill with ferry money

By Frank Oliveri
Advertiser Washington Bureau

WASHINGTON — By an overwhelming margin, the House passed a $275 billion highway bill today that includes $62.4 million during the next six years for ferry service in Hawai'i and Alaska.

President Bush has threatened to veto the bill.

The 357-65 vote would provide Hawai'i with $33.2 million in roads projects, and more than $64 million the state would share with Alaska as seed money over six years to develop ferry service.

Ranked by per-capita spending, Hawai'i was 12th at $26.40 per capita in funding under the bill.

The bill now goes to conference later this month with the Senate, which passed its own $318 billion spending bill last month. The White House had put forth a $256 billion bill.

The highway bill is seen on Capitol Hill as a jobs bill. It is projected to create tens of thousands of jobs across the nation over its six-year cycle. Bush has pushed for further reductions in the House bill as he wrestles with a growing federal deficit during an election year.

The ferry seed money would be used for ferries, terminals or approaches to terminals. The bill doesn’t state how it would be split between the two states.

The ferry money has sparked debate about where it should be used. State officials would prefer to alleviate mass-transit problems between West O'ahu and Honolulu. Rep. Ed Case, who represents the Neighbor Islands and rural O'ahu, wants to see the money provide ferry service between the Islands.

Case said money probably could be used for both inter- and intraisland ferry service.

Rod Haraga, director of the state Department of Transportation, has said that with a growing mass-transit problem on West O'ahu, he would welcome the seed money.

Hawai'i Superferry recently said it is on target to provide interisland ferry transportation by 2006, but still needs investors.