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HART requests $177.6 million operating, $891.5 million capital in FY27; federal tranches, debt service drive budget
Summary
The Honolulu Authority for Rapid Transportation told the Council its FY27 operating request is $177.6 million and its capital ask is $891.5 million, driven largely by debt-service payments and federal FFGA tranches tied to utility-relocation milestones. Council members pressed HART on funding timing, contractor requirements and Park-and-Ride timelines.
The Honolulu Authority for Rapid Transportation (HART) presented its FY27 budget request to the City Council Committee on Budget on March 11, asking for a $177.6 million operating budget and an $891.5 million capital program.
HART Deputy Executive Director Michael O'Keefe, who led the briefing, said debt service comprises the vast majority of the operating request. “Approximately 97% of our operating budget request is comprised of debt service,” he said, citing principal and interest payments on outstanding bonds and related administrative fees. O'Keefe told the committee HART had about $750 million in outstanding debt as of March 2026.
Why it matters: large debt-service obligations constrain near-term operating flexibility and make HART reliant on scheduled federal and local funding tranches.
Funding mix and federal tranches O'Keefe walked council members through HART's revenue mix, saying state surcharges (GET and TAT) comprise roughly 75% of anticipated funding. He described three federal tranches under the Full Funding Grant Agreement (FFGA): two $125 million payments tied to completion of utility relocation milestones and a final $119 million tranche that HART said becomes available in September 2027 and is not tied to a specific performance milestone. “We anticipate being able to submit invoices on that very soon,” O'Keefe said of the $125 million tranche related to opening Segment 2.
Council questions focused on timing and use of those tranches; O'Keefe confirmed the final $119 million is scheduled by FFGA terms for Sept. 2027, and the earlier $125 million tranches are milestone-dependent.
Capital priorities and project timelines HART outlined major FY27 capital allocations to continue work on Segment 3 (city-center guideway and stations), Pearl Highlands transit-center ramp, a Waipahu makai station entrance, and Park-and-Ride construction at East Kapolei and UH West Oʻahu. O'Keefe said the fixed-price contract for Segment 3 was awarded in 2024 and that the FY27 request is primarily an allocation to that already-awarded contract rather than a new cost increase.
On Park-and-Ride, HART described plans for a 900-stall lot at East Kapolei and a 1,100-stall permanent lot at UH West Oʻahu (replacing a temporary 300-stall lot); construction is budgeted to begin later in 2026 with completion targeted in 2028.
Operations and staffing O'Keefe said HART had 50 filled positions as of February 2026 and expects to fill roughly 22 additional positions by the end of FY27, bringing the total to 72. He noted HART capitalizes much of its labor costs in the capital budget because of federal guidance for project-based work.
What’s next Councilmembers signaled interest in closer review of contractor requirements for station equipment, durability of elevators and escalators, and coordination with the Department of Transportation Services on operations once segments open. O'Keefe said HART will follow up with additional detail and take committee questions offline. The committee recessed at the end of the HART presentation and moved to the next agenda items.
