(HONOLULU) KHON2 — The Hawaii Superferry has been out of commission for over 15 years, but its financial wake is still hitting the State.
Some said harbor fees — not taxes — cover the costs, but others argue residents still pay a price.
The Hawaii Superferry was meant to revolutionize interisland travel, but debt from costly harbor upgrades paid for with bonds is still hitting Hawaii.
“These kinds of projects are paid for out of specific funds that are paid into not by your average taxpayer like you or me, but by businesses who are using the harbors for various purposes,” said Senate Transportation and Culture and Arts chair Sen. Chris Lee.
The debt at the time of the Superferry’s closure was about $71 million. It is now down to just over $3.3 million with yearly payments.
Sen. Lee said decisions made in the 2000’s still have an impact.
“In retrospect, probably should have been done differently. But nevertheless, all of us here in Hawaii today who inherited the mess are on the hook for paying down that debt,” Sen. Lee said.
“This is something like a zombie. It keeps on living long after it’s dead.”
Keli’i Akina, Grassroot Institute of Hawaii president
The Grassroot Institute president points out that everyday residents and consumers are not totally off the hook, even though harbor users and businesses are the ones technically paying off the debt.
“Well, the truth is, whatever business pays, it passes on to the consumer. So ultimately, the consumer pays for it either directly as an added cost, or in terms of the services that it gets hit with,” he said. “To hear that today we’re still paying for it, it is a real sore spot, I think,” Akina said.
Akina added that other large projects risk sharing the same fate.
“It’s also true of the Rail, which is woefully behind schedule and way over budget. It will be true of the stadium project we are working on,” Akina said.
“Question is, can we come up with better ways to pay for this stuff? Secondly, how do we evaluate those projects’ risk, you know, better up front. I think those are the two big lessons,” Sen. Lee said.
Click here to read the State Auditor’s report on the subject. The debt payments for the Superferry are set to continue through 2028.