An idea to redirect funds for Honolulu's rail transit system to help the state make up its multimillion-dollar deficit might have a slim chance of passing, but lawmakers should at least entertain the proposal, Senate President Colleen Hanabusa said yesterday.

    Hanabusa briefly mentioned the idea Tuesday in her speech at this year's opening of the Legislature.

City officials immediately rejected the proposal to divert tax revenue dedicated to the rail transit system.

“;It's ill conceived,”; said Kirk Caldwell, the city's managing director-designate. “;You have some people at the Legislature and the executive branch reaching across the street into the pockets of the City and County of Honolulu, saying we want to use that to help balance the budget and not make the difficult decisions that need to be made. The voters have spoken, and they want to move forward with rail, not backwards. Here's another attempt to revisit the issue once again.”;

Hanabusa has long criticized Mayor Mufi Hannemann's planned elevated system from Kapolei to Ala Moana. She said she is not looking to stop the project, but to find revenue to help balance the state's budget deficit of $315 million this coming fiscal year from July to June 2010.

“;I don't understand why there is such an uproar about entertaining it, especially if that means we can get over some of these major humps and we can keep our employees employed with their benefits,”; said Hanabusa (D, Nanakuli-Makua).

But other state lawmakers say the Legislature should not more forward with this possibility.

“;We're looking at projects that can benefit from the federal economic stimulus project,”; said Sen. Will Espero (D, Ewa-Honouliuli-Ewa Beach). “;This is one that has the potential of bringing in $1 billion. Why would we want to delay that process that would have enormous economic benefit to the state?”;

Over the past two years, when Honolulu began receiving funds from the tax increase, the city has received more than $250 million. The state is projected to collect $165.3 million in this upcoming fiscal year.

“;My concern was then and still remains to be that we're putting all this money into a fund, and it didn't seem to me to be a wise way of collecting funds from the people to just keep accumulating it,”; Hanabusa said.