by Panos Prevedouros

I was just informed that Honolulu Mayor Peter Carlisle used strong language against IMG and Thomas Rubin, preparers of the State’s Rail Fiscal Analysis Report, and that he alleged that I helped the governor’s consultants with the report. This is consistent with Peter Carlisle not knowing what he is talking about.

For the record, I was interviewed one time by the IMG Team in Honolulu in October this year and next day I sent them the following information:

• Memo by Bainum and Djou to FTA
• Memo of concerns raised by Cachola
• Sean Hao article in Honolulu Advertiser about Hawaii’s infrastructure liability of $32 Billion excluding rail.
• PDF file of Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007
• Web address of my blog: http://fixoahu.blogspot.com 
• George Berish’s analysis of state/city pension fund

My total time expenditure and input on the subject report was about one (1) hour.

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A quick few excerpts from the Governor's transit report:

From www.HonoluluTraffic.com 

The report the Governor commissioned on the Rail Transit Project was performed by IMG, CB Richard Ellis and Tom Rubin. IMG and CB Richard Ellis are highly reputable national firms. Rubin's qualifications are also impressive (see below). The fact that he comes to the conclusion that buses are generally preferable to rail does not disqualify him. FTA Administrator Rogoff said much the same thing a few months ago. See the video of his speech on this issue at the May 22 post at http://www.honolulutraffic.com/

Rubin has Bachelors and Masters in Business Administration (BSBA, MBA), Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Management Consultant (CMC), Certified Internal Auditor (CIA), Certified Government Financial Manager (CGFM ), Certified in Financial Management (CFM), Chief Financial Officer, Alameda-Contra Costa Transit District, Oakland, CA, 1995-1996 Chief Financial Officer, Southern California Rapid Transit District (now Los Angeles County Metropolitan Transportation Authority), Los Angeles, CA, 1989-1994 Partner, Founder and Director, National Transit Industry Practice, Deloitte Haskins & Sells (now Deloitte & Touche, LLP), San Francisco and Washington, DC, 1974-1989

We mention these qualifications because the authorities will as usual want to vilify the messenger rather than address the message. The message is quite devastating and in some ways worse than what we have been saying. For example, they put the likely take for GE Tax collections, which the City has at $3.5 billion, at $2.7 billion, or $800 million less. Our latest assessment was $3.2 billion. However if you read the full report you will find it difficult to fault their logic. If you don't have time for the Report try our Quick Notes

Governor's transit report available here: The Analysis and Evaluation of Honolulu's Proposed Rail Transit Project — Final Report.