STORY SUMMARY>>>

Former Governor Ben Cayetano and the group Stop Rail Now accused Honolulu Mayor Mufi Hannemann on Monday of misleading the public about federal funding for the city’s planned 20-mile rail transit system from East Kapolei to Ala Moana.

"To go out to the community and give people the impression that this project will receive $900 something million dollars from the feds, that is simply false," said Cayetano.

City spokesman Bill Brennan said while it’s true the rail project has not been approved by the federal government, Hannemann’s administration has been working with the Federal Transit Administration every step of the way in what is considered a long process towards congressional funding.

Brennan said the city fully expects to be added to the FTA’s New Starts Program by the year 2011. The administration is counting on $700 to $900 million in federal funding for the rail project, or about 25 to 30 percent of the total estimated cost.

"This is not the day in the process that we are supposed to have that money,” said Brennan. “There's absolutely no reason to believe that any of that money would not be coming to us.”

To date the city has received $15.5 million from the federal government for the planning phase of the rail project, which is expected to cost $4.9 billion in year of expenditure dollars. The city initially projected the cost of the rail line at $3.7 billion in 2006 dollars.

Cayetano blasted Hannemann for pushing the project forward in the face of a shrinking economy and using taxpayer funds to pay for pro-rail advertisements and community meetings. The city hopes to break ground on the system in late 2009, with the first segment stretching from East Kapolei to Waipahu.

"I have never seen such a blatant public relations campaign that distorts the facts and manages information as I have this one," said Cayetano. “(The mayor) wants to start construction in 2009; that has to be one of the most irresponsible things that I've ever heard because you don't have federal approval.”

Andrew may be reached at apereira@khon2.com or ph. 591-4263.