Honolulu’s rail tab is climbing again, and this time it is brushing up against the billion-dollar mark. The Honolulu Authority for Rapid Transportation is proposing a combined operating and capital budget of nearly $1.07 billion for fiscal 2027, about a 10% jump from this year’s plan. Agency officials point to heavier debt service and new construction contracts tied to finishing Skyline through the downtown core as the main drivers. HART’s finance committee advanced the package this week, setting it up to be sent to the mayor and scrutinized by the City Council early next year.
On the operating side, HART is eyeing a budget of about $177.6 million, with roughly $172.6 million, or 97%, set aside for debt service. That pot includes about $135.5 million in principal payments and $33.8 million in interest. The agency says interest costs are expected to drop by about $6.4 million even as principal payments climb, leaving debt as the clear centerpiece of the operating plan, according to reporting by the Honolulu Star-Advertiser.
Capital priorities and big contracts
The rest of the proposal, more than $891 million, is lined up for capital work. A sizable share is aimed at the downtown stretch that will carry the line into Kakaako and the Civic Center area, the most complicated and visible phase of Skyline so far. That request tracks closely with the $1.66 billion City Center Guideway and Stations contract that was awarded last year, a big ticket construction package that goes a long way toward explaining why HART’s capital needs are swelling. Railway Age reported on the Tutor Perini deal, and a separate report on how the project broke ground on the $1.66 billion downtown phase highlighted how that segment reshapes next year’s capital spending.
Where the money would come from
To pay for all of this, HART is continuing to lean heavily on local taxpayers. Agency budget documents project that general excise and transient accommodations tax revenues will supply the bulk of the rail system’s funding next year, with a smaller slice coming from federal sources. In all, HART forecasts about $1.26 billion in primary funding sources for fiscal 2027, and expects local taxes to cover nearly 43% of that amount, per the Honolulu Star-Advertiser.
Staffing and short-term borrowing
The proposed operating plan would pay for 72 full time positions, even though HART reported only about 45 employees on staff as of September, leaving a noticeable gap between authorized jobs and people actually in the building. The budget packet also sets aside roughly $1.1 million in interest on tax exempt commercial paper and notes that the agency may issue up to $150 million in those short term TECPs to smooth cash flow, according to a budget roundup published by Hawaii Free Press.
With the finance committee’s approval in hand, HART will transmit the budget package to the mayor’s office, where it will be folded into the broader city budget review before heading to Council hearings in the coming months. The timing is touchy, as officials juggle federal grant benchmarks, tax revenue forecasts and pressure to keep construction moving at full speed, while critics point to the nearly $1.07 billion price tag as fresh proof that the project needs tighter oversight. Earlier this fall, the Grassroot Institute of Hawaii published a sharply critical commentary underscoring those concerns…