The city's plans for building an elevated rail transit line from Kapolei to Ala Moana have received a major boost by the Obama administration's initial funding. The Federal Transit Administration's director says he expects the project eventually will gain final approval, which should give Gov. Linda Lingle pause in casting a cloud over it.

The governor raised questions about the plan's financial viability, citing an Oct. 7 memorandum by the FTA's regional office, which said that “;financial issues may pose difficulties sufficient to put at risk”; the city's final design. However, agency Administrator Peter Rogoff this week suggested to reporters that he was puzzled by Lingle's skepticism, since no fewer than 13 state agencies under Lingle have participated in the project.

The plan's environmental impact statement needs Lingle's signature to go forward.

“;I have to be honest,”; Rogoff told reporters. “;We're finding the process of involving the governor to be somewhat perplexing.”;

He said his agency “;takes an independent look”; at the financing of such a project and “;will do so again when they present a financial plan at final design.”;

Mayor Mufi Hannemann can optimistically regard the agency's commitment of $55 million and Rogoff's own confidence in future funding — the city is asking for an additional $1.495 billion — as providing significant momentum to the $5.35 billion project.

“;We would not have included funding in the president's budget for this project if we thought it was falling off the rails,”; Rogoff said.

In a brief response, the Republican governor said she was “;pleased”; that Rogoff confirmed the administration's ongoing work with the city on the project, including further evaluation of the finances. Lingle said she also “;will move forward on an independent review to ensure the financial viability of the project.”;

Financing of the rail system should be of concern, but predicting cost and revenue amounts for the rest of this decade is impossible.

As the October memo notes, revenue from the general excise tax 0.5 percent surcharge has not been as large as predicted before the recession. At the same time, it adds, contract bids during the recession have been 10 percent to 25 percent below the city engineer's estimates.

Lingle also has complained that the elevated rail would not be “;aesthetically pleasing,”; reopening debate for a street-level system favored by some architects.

City officials say exploring such an option would effectively kill the proposal by requiring a new environmental statement, leaving H-1 between Kapolei and downtown in gridlock.