Posted on: Thursday, May 5, 2005
Council acts fast to raise excise tax
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| • | How they voted |
By Robbie Dingeman and Gordon Y.K. Pang
Advertiser Staff Writers
Seven members of the Honolulu City Council moved quickly yesterday to support an increase in the general excise tax on O'ahu to finance a transit system that has been debated for decades.
A council bill introduced by Planning and Transportation chairman Nestor Garcia calling for an increase in the general excise tax from 4 percent to 4.5 percent came just a day after the Legislature voted to grant the counties the right to raise taxes to pay for transportation projects.
Building a transit system to ease growing traffic congestion has been discussed for at least 20 years, but every proposal has ultimately been derailed by concerns about cost, failure to reach agreement over the technology and lack of political consensus at crucial times.
Meanwhile, congestion has become one of O'ahu's most pressing problems. One study shows that people on almost half the island will face the prospect of spending 80 minutes or more commuting during the morning rush hour by the year 2030 unless something is done to improve O'ahu's transportation network.
But officials say Honolulu may be on the verge of consensus at last.
City Transportation Services Director Ed Hirata said the support of the council, Mayor Mufi Hannemann and Gov. Linda Lingle makes him optimistic that transit has a chance to succeed this time.
"I think for the first time we're going to have a project," he said.
Lingle yesterday all but said she will sign the tax bill. Hannemann has said he hoped to quickly launch a major mass transit project that he believes needs to carry people from Kapolei to downtown and link to the University of Hawai'i.
Work could start in '09
Hirata declined to discuss the ultimate route, type of technology or even the estimated price tag of at least $2 billion before the public hearings and analysis can be done. He said transit planners must consider options that range from light rail or an all-bus system to high-occupancy toll lanes or doing nothing.
"It's hard to talk about something before you get the study done," he said.
After their analysis is completed, Hirata said the city will select the preferred alternative and start the planning and engineering in the final environmental impact statement and move to the financing.
If all goes on schedule, Hannemann has said construction could begin on a transit system as early as 2009.
Lingle said her administration is not happy that the state must administer collection and distribution of the increased general excise tax but added that won't factor into her decision. The governor has until July 12 to veto bills passed by the Legislature but must inform lawmakers of her intent to veto by June 27.
"We felt the counties should administer this themselves but it's probably not going to cause me to veto the bill," Lingle said.
Vote possible in July
The council bill introduced by Garcia had the backing of council members Romy Cachola, Ann Kobayashi, Gary Okino, Donovan Dela Cruz, Rod Tam and Todd Apo.
Garcia said he believes increasing gridlock on the roads has become such a major quality-of-life issue that people are willing to pay more for a solution. "Traffic congestion is putting a major crimp on our lives," he said.
"We are wasting no time to ensure that the City and County of Honolulu can meet the legislatively imposed deadline of Dec. 31, 2005, to enact the increase," Garcia said. The bill goes before the full council for the first time on May 11 and could be poised for a final vote on July 6.
Authorizing the tax prompts the next key step, an 18-month Alternative Analysis and Draft Environmental Impact Statement, which is required by the federal government as a condition of funding.
Mixed feelings on rail
The closest a Honolulu mass transit system ever got to reality was in 1992, but a City Council committee voted 5-4 to kill a half-cent excise tax increase that would have paid for a $1.6 billion heavy-rail transit line. With the vote, the city lost $600 million to $700 million in committed federal transit money.
People in the community have mixed feelings about the tax and transit.
Alan Howard, a retired university professor who lives in Mo'ili'ili, said he and his wife likely wouldn't use a rail line on a regular basis. But he said they support the excise tax increase because they believe it is important for everyone to make sacrifices that will improve a community.
"We feel that it's for a worthy cause and we're quite prepared to make contributions to the state which we love," Howard said. "We feel it's in the interest of maintaining a viable community and that it's our responsibility as citizens."
Paul MacKeeby, an independent contractor from Hawai'i Kai, does not look forward to paying more in excise taxes.
"Every project they take up they screw up," MacKeeby said of local government officials. "I just have no faith in them."
MacKeeby said from what he has seen, the city does not have a good fix on the cost of maintenance and operations. "They have no idea; all they want is the money," he said.
MacKeeby is also cynical about language in the proposal stating that the tax increase will end in 15 years. "They're never going to get that tax rescinded once that's in," he said. "I don't care who's in office."
Honolulu attorney William Sink said he supports increasing taxes for a rail line. "We need mass transit," Sink said.
Gloria Kaneshiro, a Nu'uanu resident, said such a tax hits harder on those who can least afford to pay more.
"It will hurt poor people and businesses, and every man, woman and child in Hawai'i," Kaneshiro said. "And I do not believe it will help the traffic congestion in Honolulu. A fixed rail will cost billions and it is not the answer to our traffic problems."
Kaneshiro said voters should be informed of how their lawmakers voted on the issue. "I believe that it's essential when we go to vote the next time," she said.
Abercrombie optimistic
After decades of participating in the debate over transit as a legislator, City Council member and congressman, U.S. Rep. Neil Abercrombie is optimistic the project has turned the corner.
"I think there is an integrated commitment on the part of the council and the mayor, I think there is very strong support in the community in the various interest groups, including the rank-and-file among some of the groups that have expressed reservations about it," Abercrombie said.
Given the years of debate on the issue, Abercrombie said, he does not believe there will be any new developments at the city level that would delay the process for a long period.
"I think it's going to move expeditiously; I don't think they're going to drag things out," he said. "It's not as if there's anything new that's going to be heard."
Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com or 535-2429 and reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or 525-8070.
