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If no solution is found by Sept. 15, the federal government could demand that Honolulu return more than $800 million it has already spent and withhold the rest of a promised $1.5 billion funding package.
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The Honolulu Authority for Rapid Transportation has a September 15 deadline to submit its financial plan to the Federal Transit Administration.
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Recipients of Federal funding for public transportation projects would be allowed to identify specific FTA regulations, practices, procedures, or guidance documents that may be an impediment to the use of a P3 or private investment in that project.
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All projects must comply with Buy America regulations, which require that all iron, steel, or manufactured products be produced in the U.S., as well as final assembly of vehicles.
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The package would fund alternative transportation by instituting a payroll tax of one-tenth of a percent of wages. In 2018, officials expect to raise $103 million for public transit in metro areas and rural communities.
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Sears is responsible for oversight of the firm’s operations in Washington, Oregon, Hawaii and the South Pacific.
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The project was expected to cost $5.2 billion just a few years ago but is now estimated to cost as much as $10 billion with financing. The city’s latest figures project a $1.384 billion shortfall from now to 2024.
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APTA and the transit industry is calling on the Trump Administration and Congress to reject these cuts and reaffirm its support for these programs as part of the FY18 budget process
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Under one bill signed by the governor, the RTC has until the end of 2020 to ask Clark County voters whether sales taxes should be increased to help pay for the proposed 8.7-mile transit system
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HART officials said the project would run out of money in January without a cash infusion, and without the bonds, it would have to begin shutting down operations this August.
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