RESOLUTION

WHEREAS, the Department of Transportation (DOT) was formed shortly after Hawaii became a State in 1959, and has the responsibility of planning, designing, constructing, operating, and maintaining state facilities for all modes of transportation, including air, water, and land; and

WHEREAS, to achieve its goal of providing a safe, efficient, accessible, and inter-modal transportation system that ensures the mobility of people and goods and enhances the economic prosperity and the quality of life for the people of the State of Hawaii, DOT coordinates its efforts with other state, county, and federal programs, including the Federal Aviation Administration, U.S. Coast Guard, Federal Highways Administration, Department of Land and Natural Resources, county planning commissions, and the Department of Public Works of each county; and

WHEREAS, DOT currently provides, operates, and maintains 11 commercial service airports at four of the five major airports serving domestic overseas carriers; four general aviation airports; nine commercial harbors; and 2,450 lane miles of highway; and

WHEREAS, the law requires DOT to generate its own revenues to fund its programs and projects and establishes independent special funds for DOT's three major divisions (airports, harbors, and highways) into which generated revenues are deposited; and

WHEREAS, each special fund is expected to generate enough revenue to pay for the division's program operation and maintenance costs, as well as to contribute five percent of gross revenues, after debt service, to the state general fund for central services; and

WHEREAS, these special funds must also provide a higher level of cash financing in the Capital Improvement Program to ease the burden on debt service; and

WHEREAS, primary revenue sources for the Airport Special Fund are the aviation fuel tax, landing fees, airport use charges, concession fees, rentals, investment income, and other miscellaneous income; and

WHEREAS, the majority of the Harbor Special Fund’s revenues come from fees and charges for wharfage, dockage, demurrage, the rental of land and wharf space at the State’s commercial harbors, and various service charges, permits and licenses; and

WHEREAS, DOT has reported to the House Committee on Transportation that fees at the airports and harbors have not been adjusted for quite some time, with the last increase in airport fees occurring in 1990 and the last increase in harbor fees occurring in 1996; and

WHEREAS, this lack of fee adjustments has contributed to the steady decline in the special fund reserves, with projections that the level of these reserves will fall below an acceptable threshold in "out years" of future bienniums; and

WHEREAS, this decline in funds may in turn require DOT to rely on the issuance of general obligation bonds to finance capital improvements for the State's airports and harbors; and

WHEREAS, with the recent announcement of Southwest Airlines beginning air service to Hawaii, as well as increased cruise ship service and the anticipated start-up of the Hawaii Superferry, DOT has embarked on an ambitious plan to modernize and remodel many of the airports and harbors throughout the islands to accommodate the increase in passengers, vessels, and cargo; and

WHEREAS, this increase in air and water services also represents new revenue-generating mechanisms to help fund the massive and ambitious projects of DOT; and

WHEREAS, funding for these projects may be jeopardized if the airport and harbor rates and fees remain unchanged; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the Senate concurring, that DOT is requested to study the current rate and fee structure for the airports and harbors of the State of Hawaii relative to anticipated capital improvement project needs for these facilities to determine whether rates and fees should be increased; and

BE IT FURTHER RESOLVED that DOT also study the airport and harbor rate and fee structures of other states that have airport and harbor systems comparable to Hawaii's; and

BE IT FURTHER RESOLVED that DOT submit a report with its findings, recommendations, and any necessary legislation to increase the rates and fees at the state harbors and airports no later than 20 days prior to the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Director of DOT.

Report Title:

DOT to review state airport and harbor fees and adjust these fees as necessary.