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City Council City Council members appear to be taking two slightly different approaches as they consider a bus fare increase. And any move toward higher bus fares will need to either win over Mayor Jeremy Harris or gain enough votes to override a potential mayoral veto.
proposes bus rate
hike, subsidy limit
The increase will bring in
$3 million a year; another
bill limits bus subsidies
by the city to 70%By Gordon Y.K. Pang
Star-BulletinHarris has opposed previous attempts by the Council to raise rates, saying increases would hurt riders in lower income brackets and decrease ridership.
The administration has so far remained silent on the proposal to raise the basic adult cash fare to $1.25 from $1 while leaving monthly and senior passes the same.
Council Chairman Jon Yoshimura wants to approve a bill that would hike fares immediately.
Meanwhile, Transportation Chairman Duke Bainum wants to first pass a resolution establishing a formal policy that the city will not subsidize TheBus operations by more than 70 percent.
"Right now, to me, taxpayers are bearing an unreasonable burden in subsidizing the system," Yoshimura said. "We're just trying to bring it into balance."
He said the increase could bring in an extra $3 million to $4 million a year.
That would push fare revenues beyond $30 million, roughly 30 percent of TheBus' $102 million operating budget. The rest of the cost of bus service comes from the city and taxpayers.
Government transportation officials view a 30-70 revenue-to-subsidy ratio as a guideline. Bus officials say the ratio now is about 27.5 percent.
Yoshimura said he is hoping to push through a rate increase by the spring, in time to be factored into the upcoming 2002 fiscal budget.
Bainum said only after a guideline is established should members tinker with rates.
"It's important we establish a policy that would guide not only this Council but future Councils," he said. "We should start with the policy and then look at the specifics."
His resolution is not in actual conflict with Yoshimura's bill, Bainum said, since technically the resolution could be passed before a vote on the bill in a few months.
"I don't think we're that far apart," Bainum said, although raising fares "is not my priority."
Bainum is holding a workshop on the resolution at 2:30 p.m. Monday.
Officials for Oahu Transit Services, which operates TheBus, endorse both a policy on rates and higher rates.
Jim Cowen, president of Oahu Transit, said the subsidy-to-cost ratio had steadily decreased in recent years, then saw a major drop in 2000.
"Diesel fuel has just gone through the roof, and the city has added additional service to the system," Cowen said, referring to the Harris administration's push toward express buses and a new hub-and-spoke system.
"Revenues don't go up but costs go up," he said.
The last time the bus rate went up was in 1995, when it went to $1 from 85 cents.
City & County of Honolulu
