Honolulu’s City Council on Monday voted to urge the city to dump its decades‑old farebox recovery policy, the rule that sets automatic revenue targets for transit. The resolution, numbered 262, passed 8‑0 during the full council meeting. Councilmember Scott Nishimoto was absent for that portion of the session.
What the resolution would change
The measure takes aim at the farebox recovery ratio — the share of operating costs covered by rider fares — calling it outdated and unmet. The original 2000 rule set a target of 27–33%, and a 2019 update lowered it to 25–30%. The resolution states, “It is anticipated that the city will not comply with the farebox recovery ratio policy for fiscal years 2025 and 2026,” as reported by the Honolulu Star-Advertiser.
Fare hikes in the backdrop
The push to repeal comes as the Department of Transportation Services asked the council to consider Bill 54, which as initially proposed would raise a monthly adult HOLO pass from $80 to $90 and an annual adult pass from $880 to $990. The Budget Committee deferred Bill 54 in October to study impacts on low‑income and disabled riders, according to Hawaii News Now.
The money math
Transit is still expensive to run. Department director Roger Morton told rate commissioners last year that annual operating costs were roughly $244.8 million for buses, $53 million for TheHandi‑Van and about $76 million for Skyline. Morton also said the fare changes on the table would likely net only a few million dollars a year — an estimate in the $4–4.4 million range — while total system costs remain far higher. Those figures and estimates are detailed by Mass Transit.
Riders and advocates weigh in
Labor and transit advocates — including Unite Here Local 5 and the Ulupono Initiative — submitted written testimony backing Resolution 262 as a way to protect service and keep fares affordable. Some residents opposed it, worrying that removing a recovery target could complicate budgeting. The debate played out in written testimony and public comment during committee hearings, reflecting a split between affordability advocates and officials focused on long‑term system finances, according to the Honolulu Star-Advertiser.
What’s next for riders
Resolution 262 is an urging, not a code change. Any repeal or rewrite of the fare policy would require follow‑up from the mayor’s office, the Department of Transportation Services and additional council action. With Bill 54 deferred, riders shouldn’t expect immediate fare increases while the policy debate and budget reviews continue.
