Posted on: Sunday, June 26, 2005

EDITORIAL
Smart card program is worth reviving

There is still time for the Hannemann administration to do the right thing and reconsider its decision to drop a so-called "smart card" program for its bus system.

Faced with technical problems and a relatively slow start, the administration told the City Council it will drop the program after spending $1.1 million to set it in motion.

True, this means the other half of the $2.2 million contract will be saved for other purposes, assuming the money is not soaked up in litigation and other expenses.

But it is a shortsighted savings. A well-operated program (and there are many around the country and the world) would be a convenience for customers and would likely drive up ridership.

There are many other ways in which this program could cost out well.

First, if riders pay for their cards in advance, they are in effect "loaning" money to the city, interest free. Unused credits would amount to found money for the city.

Second, high-quality "collectible" cards could be developed that would sell at a slight premium. These would be particularly popular with tourists who would get the benefit of convenient bus rides and an unusual souvenir.

And once the smart card system was well established, it could easily be adapted for other city functions in which a fee is charged, ranging from golf courses to Hanauma Bay and even entertainment facilities.

In short, there is a lot of potential upside to the smart card idea. It should be revisited.