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Committee advances fare changes for bus and Skyline; rate commission process emphasized
Summary
The budget committee amended Bill 54 to CD1, which streamlines the fare structure and raises some fares to boost recovery; the rate commission reviewed the proposal and the administration said changes are projected to add about $2 million in annual revenue.
The Honolulu City Council Committee on Budget advanced Bill 54 (CD1), an ordinance that simplifies transit fares and makes modest fare adjustments for bus and Skyline service. Deputy Director John Noichi (DTS) told the committee the changes are intended to address an approximate $280 million annual bus operating deficit and to move the system closer to the council’s adopted policy goal that fares cover at least 25% of bus operating and maintenance expenses.
DTS said the CD1 reduces fare categories from 10 to 3, adds modest increases such as a 25¢ rise for some cash single-ride fares and incremental increases for HoloCard passes and caps, and moves deeply discounted annual fares for kupuna, people with disabilities, low-income riders and Medicare-eligible users to a $50 annual rate restricted to Hawaii residents (a roughly 95% discount versus full adult fares). DTS estimated the adjustments would generate about $2 million in added revenue and said single-ride HoloCard fares and certain two-hour passes would not increase.
The Honolulu Rate Commission, led by Chair Dre Khalili, reviewed the proposal over several months, held multiple public meetings and collected more than 100 pieces of testimony. Khalili described deliberations that considered different rider personas (casual, commuter, heavy user) and the tradeoffs between raising single-ride fares and strengthening fare caps and HoloCard incentives.
Public testimony included concerns about access to discounted programs and about barriers for residents who lack internet access or have limited English proficiency. Longtime transit advocate Donald Sakamoto urged more outreach and assistance for applicants for deeply discounted fares and expressed concern about continued cash handling costs; DTS said cash collection is expensive (about $4 million annually) and that open-payment options (debit/credit onboard) are planned within about a year to give riders more payment choices.
The committee amended the bill to CD1 and recommended it be reported out for second reading and scheduling of a public hearing. Members asked DTS to address remaining items (including Medicare-cardholder issues) in a forthcoming CD2.
