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I don't think the current administration has much of an appetite for rail - they are going to rely on Biden to continue to print money.
Rick won't get reelected with a tax increase - so don't see that happening the next 4 years - and he may have his eyes on the State Gov.....
I think it is reasonably correct to state that the residents of Oahu (and the rest of the state) are completely fed up with the rail project. It is the elephant in the room that is standing in front of Rick's desk leaving piles of elephant droppings. A little tough to ignore. It's not only the money but the larger concern of the apparent failure to properly manage the project. I think the question to ask is, 'Will Rick get re-elected if the the rail project isn't fixed?'. I don't foresee any federal help until they are satisfied with the direction of project management and perhaps the county/state putting more money in the game.
Rick won't get reelected with a tax increase - so don't see that happening the next 4 years - and he may have his eyes on the State Gov.....
Why would he need to increase taxes? The city assessors are licking their chops waiting to submit those massive increases in property valuations. Taxes are going way up but not because Rick is raising taxes, but because property values are up. Even if there was a significant price correction in the next couple years, the city always lags in (lowering) assessments. Quick to increase... sloooooow to decrease. Rick lucked out. Big time.
Why would he need to increase taxes? The city assessors are licking their chops waiting to submit those massive increases in property valuations. Taxes are going way up but not because Rick is raising taxes, but because property values are up. Even if there was a significant price correction in the next couple years, the city always lags in (lowering) assessments. Quick to increase... sloooooow to decrease. Rick lucked out. Big time.
The property tax rate on Oahu is among the lowest (or the lowest) in the United States. Increasing assessments on a rate that is not a lot will bring in more money - but not a lot of money - certainly not enough to move the bar on rail.
I just left the Chicago SW suburbs where my parents live - suffice it say my house on Oahu is worth several multiples what their house is worth (and they have a very nice house) - they pay more in property tax than I do.
The property tax rate on Oahu is among the lowest (or the lowest) in the United States. Increasing assessments on a rate that is not a lot will bring in more money - but not a lot of money - certainly not enough to move the bar on rail.
I just left the Chicago SW suburbs where my parents live - suffice it say my house on Oahu is worth several multiples what their house is worth (and they have a very nice house) - they pay more in property tax than I do.
That is because most places use property taxes to fund public schools. That is the bulk of property tax bill in most places. Hawaii funds schools through general revenue, not property taxes. So, id is really not a fair comparison
That is because most places use property taxes to fund public schools. That is the bulk of property tax bill in most places. Hawaii funds schools through general revenue, not property taxes. So, id is really not a fair comparison
I'm not comparing - I'm stating that even if assessments go up 20% - it'll bring in some revenue, but not a lot since the rate is so low to begin with. Let's call it millions - that doesn't dent rail.
If I give someone making min wage a 20% increase taking them from $10 to $12, does it really make much of a difference? Or, if I give an earner making $100,000 a 20% increase - that'll actually make a difference.
I'm not comparing - I'm stating that even if assessments go up 20% - it'll bring in some revenue, but not a lot since the rate is so low to begin with. Let's call it millions - that doesn't dent rail.
If I give someone making min wage a 20% increase taking them from $10 to $12, does it really make much of a difference? Or, if I give an earner making $100,000 a 20% increase - that'll actually make a difference.
20% of not a lot, is still not a lot.
I was referring to your last paragraph, seemed like a comparison. Your point about increasing a low base is correct.
"I just left the Chicago SW suburbs where my parents live - suffice it say my house on Oahu is worth several multiples what their house is worth (and they have a very nice house) - they pay more in property tax than I do.?
I understand approximately 40.5% of Honolulu County's yearly revenue is derived from property tax collections,. This is
about $1.4 billion annually. For the sake of discussion, a twenty percent increase would generate an additional $280 million
a year. Like it or not, rail is going to have to be paid for. The question is how much will be apportioned to Oahu residents
and the state....for our neighbor islanders, you have to start wondering if you'll end up paying for this vis-s-vis decreased state funding for your island's infrastructure projects if state revenues go to Oahu's rail.
Honestly, who wants to pay, say 20% (for the sake of discussion) more for anything?
I understand approximately 40.5% of Honolulu County's yearly revenue is derived from property tax collections,. This is
about $1.4 billion annually. For the sake of discussion, a twenty percent increase would generate an additional $280 million
a year.
While I don’t think property taxes will go up 20% across the board $280 million is chump change compared to the at least $3 Billion rail shortfall. Emphasis on at least.
At this point, any additional money is not being paid for rail. The cost of the project has already been more than paid in full. Any additional money is covering the cost of incompetence, mismanagement and likely a sprinkling of corruption as well.
At this point, any additional money is not being paid for rail. The cost of the project has already been more than paid in full. Any additional money is covering the cost of incompetence, mismanagement and likely a sprinkling of corruption as well.
Regardless of what was previously projected, budgeted and paid, what is known is the project currently has
a $3 billion shortfall in funding needs. You are correct, at this time no additional money is being paid for rail, but that is only because there is absolutely no idea how or from where that shortfall will be made up. It will be made up.
One additional thing to consider, building is just in the very early stages of entering the city core, where in all likelihood, unrealized costs will substantially increase the cost of the project.
This is going to get 'interesting' real quick. As I alluded to earlier, if I lived on a neighbor island, I'd be trying to protect future revenue streams for my island's needs before it gets sucked into a black hole here on Oahu.
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