Ongoing turmoil on Wall Street and debate over a massive federal bailout of the financial sector could cast added uncertainty over the availability of federal funds for Honolulu's elevated train.

However, the current economic malaise should not adversely affect Honolulu's chances of getting an inflation-adjusted $925 million in federal funds for the train, an official for the project's biggest consultant said yesterday.

Mort Downey, chairman for PB Consult Inc., which is a subsidiary of city contractor Parsons Brinckerhoff, also reiterated reasons why Honolulu should be confident its $3.7 billion transit project will get strong federal support.

Details and a timetable for passage of an unprecedented $700 billion financial federal intervention in the capital markets remain to be settled. However, the heart of the recently unveiled plan involves the government buying up sour assets of tottering financial firms to keep them from going under and to stave off a potentially severe recession and the accompanying lost jobs and further home foreclosures.

There's some concern that such a massive bailout could detract from infrastructure spending in the long term.

However, Downey, a former U.S. deputy secretary of transportation, said the nation's current financial problems shouldn't affect the prospects of Honolulu's rail project receiving federal funding.

That's "unless it's worse than we all understand," he said. "Then I would argue if it's really worse than we all understand, the outcome will be not only a bailout, but a strong public works investment."

Honolulu taxpayers already are expected to bear about $4 billion of the project's costs via a half-percentage-point excise tax surcharge that expires in 2022. That means the city needs the federal government to provide about 25 percent of the project's funds, assuming the project stays on budget.

However, Honolulu isn't expected to find out how much federal funding it will get until 2011. Meanwhile, the city plans to start construction on the East Kapolei to Ala Moana train in fall 2009.

The city has argued that a faster timetable will help reduce costs while allowing limited service to launch in late 2012. Critics contend the city's timetable is not realistic and could result in a major burden for local taxpayers, if federal funds don't come through as planned.

Downey yesterday defended the city's strategy. He said Honolulu is in a strong position to attract federal funds for several reasons, including that the city plans to pay the majority of project costs. Normally communities ask the federal government to pay 50 percent to 80 percent of transit project costs, he said. Honolulu is seeking 25 percent.

Honolulu "has a good case, (but) it's not a slam dunk," Downey said. "The thinking is ... if the local contribution creeps up from 20 to 50 (percent) or whatever, there's going to be a lot more local concern about (having) a good project, about (having) a deliverable project and in effect as a federal agency you're minimizing your risk."