HART seeks $175 million operating, $794 million capital budgets; officials say Segment 2 transfer likely before year-end, October earliest possible opening

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…