Several state senators, in a warning to Honolulu Hale, said the state should suspend a tax surcharge for mass transit if the city does not agree on the technology for the project by the end of June.

The city, the senators believe, should also have to return the tax money collected for mass transit if contracts have not been awarded for the project by the end of the year.

State Sen. Shan Tsutsui, D-4th (Kahului), who proposed a bill to suspend the tax surcharge yesterday, said he and other senators want to motivate the city to take action. He said the $148.5 million the state has collected from the tax surcharge for the city through December could be used for other state road projects on O'ahu if the city stalls on mass transit.

"It shouldn't be an open-ended thing," said Tsutsui, vice chairman of the Senate Ways and Means Committee. "I don't want to be here three years from now, with over $500 million collected for transit, with nothing to show for it.

"We've been told from the beginning that they wanted to see a commitment. And I think $150 million is a commitment on the state's behalf. I'm just saying let's not take out any more money from the economy if we're not going to move on this soon."

EXPERTS TO DECIDE

The City Council voted 6-3 yesterday afternoon to have an advisory panel of experts recommend the technology for a fixed-guideway system. Mayor Mufi Hannemann has said that the project is on track and that the city hopes to break ground by 2009. The elevated system —with an estimated cost of $5 billion — would likely run from Kapolei to Ala Moana and could later extend to Waikiki and Manoa.

Three years ago, the state gave all four counties the option to add a 0.5 percentage-point surcharge on the 4 percent general excise tax to help finance transportation projects. The City Council agreed to add the tax to help pay for a fixed-guideway system that may relieve some pressure on O'ahu's congested freeways and roads. The state began collecting the tax last year.

The tax component was described as a critical commitment by the state and the city that could help Honolulu qualify for federal money for the project.

"This is something that we need to move on for the people of the City and County of Honolulu," said City Councilman Nestor Garcia, chairman of the council's Transportation Committee.

"Notwithstanding the concerns raised by state lawmakers who are proposing that legislation, this is a democratic process," Garcia said. "The process demands that the people weigh in, not just the City Council, but the public. It has been mentioned, not by me, but by others, that this will be one of the biggest decisions we'll ever make. So, I think, that demands that we try to make the most considered decision."

Hannemann was attending a U.S. Conference of Mayors winter meeting in Washington, D.C., and was unavailable for comment yesterday. His spokesman, Bill Brennan, said he talked with the mayor briefly and said the senators' "concerns about certainty are somewhat unfounded."

Brennan said Hannemann would be briefing state lawmakers on the project, like the mayor did last session.

"We appreciate the interest lawmakers have in this project," Brennan said. "That being said, we believe we're ahead of schedule at this point."

City Council Chairwoman Barbara Marshall said she would welcome a state suspension of the tax surcharge. "I think that would be great," she said. "I've opposed the transit (project) all the way down the road."

'MOVE IT FORWARD'

The City Council has struggled with major public-policy decisions over the past few years, including transit and landfill issues. The transit project, which could be the largest public-works project in state history, has been discussed for several years. The city aborted a previous transit plan in 1992 after the council opted against a tax increase to help pay for the project.

Tsutsui and state Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), questioned why the city has left the technology decision open at this late stage. Tsutsui said the June and December deadlines he is proposing would provide some certainty, although he said he is open to discussing a timetable with the city.

Hooser said he has supported the transit project and the tax surcharge. "But I'd like to see the project move forward, and move forward quickly," he said. "I'm concerned that it could drag out indefinitely. We need to move it forward in a timely and responsible manner. And I think this bill will provide some structure for that."

State Sen. J. Kalani English, D-6th (E. Maui, Moloka'i, Lana'i), the chairman of the Senate Transportation and International Affairs Committee, said he would hear the bill. "I think there needs to be some movement," he said.

State Rep. Joseph Souki, D-8th (Wailuku, Waihe'e, Waihehu), the chairman of the House Transportation Committee, said he would consider the bill if it makes it through the Senate and crosses over to the House.

"It may have some merit to act as a little spur," he said.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.

Correction: State Sen. J. Kalani English is the chairman of the Senate Transportation and International Affairs Committee. The name of the committee was incorrect in a previous version of this story.