Committee forwards bill to extend Hawaii County fare-free transit through Dec. 31, 2028

The Policy Committee on Public Works and Mass Transit in Hawaii County voted 8-0 to forward Bill 75 to the full council with a favorable recommendation, extending the county's temporary suspension of fares for fixed-route mass transit through Dec. 31, 2028. The committee met in the Hilo County Building Council Chambers and received one public testimony and a briefing from Mass Transit Agency staff before the roll call vote.

Committee Chair James Eustace opened the item and called for public testimony; Susan Hamilton, who identified herself as "an occasional rider of the bus," urged the committee to "please keep it free for those that work on the other side at minimum wage jobs and really rely on it," and asked for clearer signage at rural stops.

Acting Mass Transit Administrator Zach Burgum and agency accountant Kelly Ann Fujii briefed the committee on grants, operations and planned changes tied to the bill. Burgum said the agency expects to rely on existing federal and state grants to support operations while fares are suspended and pursue new programs, including a microtransit pilot for rural areas. "Micro transit is really 1 of the big ones for us to be moving in that direction," Burgum said, describing microtransit as a service to connect riders who live more than about a mile from fixed routes to the system.

Staff said several capital and operating grants fund current and planned work: FTA 5339 formula grants (vehicle and bus-facility purchases), FTA 5311 formula grants (operating assistance), a Low-No Emission Bus program request for battery-electric buses and chargers, and a CMAQ (Congestion Mitigation and Air Quality) grant the agency envisions applying to a new microtransit service. Burgum said the agency currently has five battery-electric buses on site in Hilo and expects additional chargers to be installed at the base yard in spring next year; HECO is the local utility partner for chargers.

The presentation also listed costs the county would face if it resumed fare collection: staff said installing fare-collection equipment on county and contractor buses would total "just over a million dollars," and that upgrades to facility camera systems would be required. The share-ride taxi program, a county-subsidized door-to-door option, operates on a roughly $1,000,000 annual budget and contracts with local providers (named in the briefing as Daniels Quickie and Marisha's Taxi).

Councilmembers questioned staff about security, route efficiency, procurement delays and long-term funding. Diane Akagawa of the county Finance Department said the county and Mass Transit have been studying agency operations and route efficiencies since recent budget hearings and are pursuing contract negotiations and other cost controls. Burgum and staff described procurement slowdowns in recent years caused in part by protests and supply issues, which delayed adding vehicles.

Several councilmembers said they supported continuing fare-free service while planning for future sustainability. Councilmember Villegas said, "I support continued fare free because I feel like it does more good than harm," citing rural residents and low-wage workers who rely on the system. Councilmember Kirkowitz urged the agency to plan for the eventual sunset of the half-percent GET funding the county uses for transportation, telling staff, "what's in the back of my mind is ... the half percent of GET ... is set to sunset in 2030." Committee members asked staff for a clearer multi-year financial and implementation plan for equipment, microtransit and shelters.

The committee voted on a motion by Councilmember Inaba, seconded by Councilmember Kaguewata, to forward Bill 75 to the full council with a favorable recommendation. The roll call showed eight yes votes and one absence (Councilmember Connie Lee Kleinfelder). The clerk read that the bill repeals Section 5 of Ordinance No. 22-94 and amends Chapter 18, Article 4, Division 1, Section 18-90 of the Hawaii County Code (2016 ed., as amended) to extend the temporary fare suspension through Dec. 31, 2028; the suspension does not apply to county-contracted share-ride taxi services or Parks & Recreation curb-to-curb van services.

Next steps: the bill will appear on the full council agenda for further consideration and possible final action. Agency staff told the committee they will continue planning work on microtransit, charger installation, GTFS/GIS route updates for real-time tracking and an equipment plan should the county decide to reinstate fares later.