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DTS outlines $501 million FY27 budget; council presses for revenue options including advertising and parking
Summary
The Department of Transportation Services presented a roughly $501 million FY27 operating budget and outlined division-level needs, Skyline operating costs, Holo card reprocurement plans and potential revenue strategies such as exterior advertising and expanded Park-and-Ride fees.
The Department of Transportation Services (DTS) briefed the Committee on Budget on March 11 on its FY27 operating and capital requests, explaining division-level budgets, service costs and near-term priorities.
DTS Director Roger Morton said the department’s proposed operating budget is about $501 million. “Our budget is about 500, $501 million,” Morton told the committee, with the Skyline operating allocation listed at $123.9 million and bus and handy‑van operations accounting for roughly $351 million of the total.
Why it matters: DTS budgets fund daily transit operations, maintenance for Skyline and buses, and safety and signal investments; the department also controls services that HART will transfer when rail segments open.
Revenue assumptions and federal funding Councilmembers pressed DTS about its assumptions for state surcharges such as TAT and GET. Morton acknowledged recent volatility in TAT collections but said GET has been higher year-to-date and that the combined picture provides a cushion. He told the committee DTS projects about $21.12 million of federal funds for operating purposes (mostly for bus subsidy) and said larger federal support is focused on capital projects.
Fare system modernization and HOLO Morton discussed reprocurement and modernization of the HOLO fare system, including a $1.35 million budget line for the revenue services manager contract and a separate allocation for HOLO cards. He explained plans to implement open payments (credit-card acceptance), noting that roughly 300,000 HOLO cards are used annually and that card printing costs will decline once open payments are active.
Revenue-generation ideas: advertising, naming rights, parking Councilmembers and DTS explored ways to boost non-fare revenue. Morton said interior vehicle advertising generates modest sums and that exterior advertising and station sponsorships present larger potential: he estimated exterior opportunities might generate several million dollars (he cited an illustrative $6M figure based on comparables). The council also discussed piloting overnight or paid Park-and-Ride options and pursuing partnerships with private lots to expand capacity in Kapolei and other growth areas.
Operations, fleet and safety projects Morton outlined major contracts for rail operations and maintenance and described an ongoing joint procurement with HDOT to modernize roughly 900 traffic controllers to enable adaptive traffic control—an effort described as a five‑year program with federal funding potential. He also described Elevator and escalator maintenance budgets and staffing pressures as the system ramps up.
What’s next Councilmembers asked DTS to provide follow-up details on advertising procurement, the HOLO reprocurement schedule, and options for piloting paid overnight parking at Park-and-Ride lots. Morton said DTS would provide additional information and coordinate with council offices on revenue and implementation options.
