Transportation director outlines ferry study, MEO electric-bus grant and microtransit plans in FY26 budget pitch

Department of Transportation Director Mark Takamori briefed the Budget, Finance & Economic Development Committee on April 14 about key changes proposed in the Department of Transportation's FY2026 budget, including ferry planning, transit contract increases and pilot programs.

Lede: Takamori told the committee the department seeks funding for three new half-year positions, a $475,000 one-time grant to Maui Economic Opportunity to purchase a 14-passenger, two-wheelchair electric bus, a $544,175 (7.14%) increase in MEO's human-services transportation grant, and $2,000,000 to start development of a ferry program for Maui County.

Nut graf: The department said the ferry allocation would fund environmental reviews, scope development for operations/maintenance contracts, vessel specifications and grant research. Takamori described the requests as necessary to respond to rising operational costs, prevailing-wage increases and the need for additional service options across the County.

Key items discussed

- Ferry program: Takamori said the $2,000,000 request is for planning, environmental review and preliminary work; he emphasized that the County must complete environmental review and procurement planning before buying vessels. In response to council questions, he said the environmental-review phase could take months and that the department expects to pursue consultant contracts through standard procurement processes. Member Johnson asked whether a ferry purchase would happen in FY26; Takamori said the funds requested in FY26 are for planning and that actual vessel purchase would follow environmental review and design.

- MEO grant & human-services increase: The department's one-time $475,000 MEO grant would support purchase of a 14-passenger two-wheelchair electric bus. The department also requests a recurring $544,175 increase to MEO's human-services transportation grant to offset rising wages, software licensing, vehicle maintenance and insurance.

- Maui bus contract increase: Takamori proposed a $992,500 (5%) increase to the Maui Bus service contracts (fixed route, commuter and paratransit), citing higher prevailing wages, utilities, fleet maintenance and insurance as drivers of the request.

- Microtransit and Kula/Waiehi service: Takamori described planning for microtransit (smaller vans, on-demand curb-to-curb rides) to serve infrequent fixed-route areas such as Kula and Waihe'e He said bids for microtransit vans were under way and that a service might be ready near the start of FY2027.

- Park Maui and parking revenue: The department proposed new rates and fees to support Park Maui expansion and introduced a draft $50 event permit fee for limited nonprofit community use of the Wailuku parking garage. Takamori said the $50 fee is intended for community events and that the department plans to further refine rates and ordinance language before implementation.

Committee concerns and follow-up requests

Committee members asked about driver and mechanic shortages and wage competitiveness; Takamori said competition with private industry drives turnover and that private employers often pay more than contract rates, which complicates recruitment. He said the department is close to recruiting a grants specialist to help pursue federal and state grants. Members also flagged the need to collect more granular parking and fare data (for example non-resident revenue in Park Maui) and asked the department to supply maps that show transit routes in relation to grocery and service access points.

Public-comment highlight: A brief in-person comment came from a representative who praised Roberts Hawaii and the county's transit work.

Next steps: Committee members asked for follow-up information in writing, including more detailed ferry planning steps and procurement timelines, grant-matching expectations and clarifications about how the three requested positions would be funded in FY26.