FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Costs Keep Rising for Honolulu Rail Line

by Megan Hill

Oct 10, 2017
Feature

Honolulu tested its rail cars, which will move people around the city once the Honolulu Rail Transit Project is finished. The 20-mile, fully automated, $9.5-billion transit line is set to open late 2020 and is expected to save about 40,000 car trips, hopefully easing Oahu’s notorious traffic.

The rail line has seen its share of controversy. Originally estimated to cost $4.6 billion, the line ballooned in cost. To cover the difference, the city voted to extend a half percent General Excise Tax surcharge by five years.

The costs extended again with the rail line half finished. It’s now one of the most expensive per capita in the nation. Adding to the pressure, the Federal Transportation Administration, which committed $1.5 billion, gave the project a Sept. 15 deadline to prove it could pay for the rest or risk losing funding.

The Hawai’i Legislature agreed to increase funding by extending the excise tax for another three years. The rest of the shortfall will be made up by tourists, thanks to a statewide increase of the Transient Accommodations Tax by 1 percent for three years.

This is not without criticism.

“One percent increase in TAT would remove over $30 million from our Neighbor Island communities and economies, sending it to Oahu,” said Mike White, Council Chairman for Maui County, in a statement on his website.

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