Laurie Kahikina, CEO and executive director of the Honolulu Authority for Rapid Transportation (HART), told the Council’s Budget Committee that HART’s proposed fiscal 2026 request includes a $175,000,000 operating budget and a $794,000,000 capital budget and that the agency remains committed to transferring Segment 2 assets to the city "before the end of the year." Kahikina added, "The earliest we could possibly open is October, so we should budget for that."

Why it matters: HART’s budgets and the federal funding tied to construction and opening milestones will determine when the city can begin revenue service on expanded Skyline segments and how quickly construction of City Center Guideway and Stations proceeds. HART said the bulk of the proposed operating request pays bond debt tied to the project.

HART’s request and funding sources: Kahikina told the committee the operating request totals $175 million and that "97 percent of that is for our debt service expenditures." She said principal payments in the coming year total about $129 million and that total labor costs in the operating budget are budgeted at $1.5 million. On capital, she said the request is $794 million and listed primary anticipated funding sources: a projected general excise tax (GET) allocation of about $371 million, a transient accommodations tax (TAT) allocation of about $89.7 million, an Oahu TAT allocation of $57.2 million, and federal funding connected to the Federal Transit Administration (FTA) Full Funding Grant Agreement (FFGA). Kahikina told the committee that HART’s unreserved balance forecast as of June 30, 2025, is approximately $601 million, and that the total cash picture shown in the presentation is about $1.26 billion.

Federal grant milestones: HART has one outstanding FFGA pool originally totaling $744 million. Kahikina said HART and its partners received $375 million in calendar year 2024 after contract progress and that "what's remaining in the FFGA is $369,000,000." She explained how the remaining sum breaks down: $125 million tied to opening Segment 2, $125 million tied to completion of City Center utility relocations (CCR 4 / Dillingham corridor), and roughly $119 million with no milestone identified. Kahikina said the agency will work with FTA on releasing the last tranche once CCR 4 is completed.

Capital projects and schedule: Kahikina said HART has awarded the Tutor Perini contract for the City Center guideway and stations (CCGS) and described that contract as a $1.6 billion package being delivered in multiyear phases; HART asked for $527 million for that package in the coming year. She said Contractor Tudor Perini is already in the field performing borings and potholing and that columns "should start to come up later this year." HART continues to project Segment 3 transfer in a 2030–2031 timeframe. The Pearl Highlands Transit Center and access ramp is in the capital request at $224 million, and Kahikina said the project includes a bus staging area and an H‑2 ramp. HART also put the Waipahu (MacKay) station entrance back into the capital program; Kahikina said updated FEMA flood maps removed a prior design constraint that had required HART to acquire adjacent property, and she said HART hopes to start design in the current fiscal year.

Staffing and expenses: Kahikina told the committee HART has 47 filled city positions, is budgeting to fill an additional 25 positions for a proposed total of 72 authorized FTEs in FY2026 (out of 98 authorized FTEs overall). She said HART capitalizes many positions across capital packages and explained that budgeted labor costs increase partially because of hazard-pay estimates and an updated OPEB calculation that corrected an understatement from the previous year. Kahikina also said board-related expenses were reduced and that the board budget was trimmed after one-time augmentations the prior year.

Public testimony and accessibility: Two members of the public testified before the HART briefing. Donald Sakamoto, who identified himself as president of Citizens for Fair ADA Ride, said he participated in the city audit on accessibility and flagged concerns about station access in later phases. "I'm worried about the construction of phase 2 and phase 3 of the rail stations and surrounding areas to be more accessible for our ADA persons like myself who's blind and others," Sakamoto said, urging closer attention to ADA compliance. Angela Melody Young, a member of the public, testified in support of HART’s budget and urged improvements to bus and handy-van processes that serve seniors and day centers.

Federal funding outlook and FTA relations: Deputies and HART staff told the committee they have discussed forecasts and assumptions with the FTA and the project management oversight contractor and said the FTA has signaled confidence in HART’s recent performance. Deputy Project Director Rick Keen said HART worked with the FTA and the PMOC on recent financial-plan assumptions and that "we feel pretty solid on the GET and the TAT and the OTAT forecast."

What remains unresolved: Kahikina said HART will not know exact transfer and opening timing until after trial running and system demonstration next summer, and she urged the city to budget prudently for an October earliest opening while retaining an end-of-year target. She also said HART will open discussions with FTA about the $119 million not tied to a milestone after CCR 4 completes but cautioned that agencies in Washington may want milestones to justify final disbursements.

Ending: HART presenters closed by offering to provide additional detail to council offices on staffing funded from capital packages, on the Pearl Highlands cost estimate and on other program-level breakdowns. The committee followed with questions about project timing, eminent domain exposure and the plan for using anticipated FTA payments in the upcoming fiscal year.