The latest transit tax collection figures are down nearly $2 million from where they were at this time last year as the global economic crisis keeps visitors away and spending slow.

Through October, the state has collected $61,233,859 from the Honolulu county surcharge, compared with $63,086,834 through the same time last year, according to the state Department of Taxation.

That excludes a 10 percent fee kept by the state to cover transit tax collection expenses.

The state began collecting a half-percentage-point general excise tax surcharge for transit in January 2007 and $246 million was raised in the first 20 months, according to state tax department records.

The state and the city and county of Honolulu are raising that money in the form of a 15-year increase in the state's general excise tax on O'ahu, from a maximum of 4.166 percent to 4.712 percent.

Toru Hayamasu, deputy director of the city Department of Transportation Services and the transit project director, said lower collections may require the selling of bonds somewhat sooner than expected, with a resulting increase in finance charges.

Overall short-term fluctuations in general excise tax revenue are not devastating as long as the total revenue collected in the 2007 to 2022 life of the tax is within the expected range, he said.

"We are certainly continuing to closely watching GET surcharge collections, revising our forecasts of expected revenues, and observing forecasts made by others such as the State's Council on Revenues. At this time, our forecast for GET surcharge revenues through 2022 is sufficient to meet the demands of the project. An extended downturn in the economy may result in our needing to lower our forecast, but, on the other side of the equation, may result in a lowering of expected construction costs," said Hayamasu.

An advantage of the collection of the GET surcharge having started in January 2007 is that the project has a "bankroll" available to start construction. The plan has been to start construction on a "pay-as-you-go" basis, then to sell bonds as needed, backed by the expected GET surcharge revenue flow through 2022, Hayamasu said.

July marked the first month that year-over-year transit tax collections were down. The city's portion of the transit tax dipped 32 percent to $11.4 million versus $16.8 million in July 2007. That trend continued in August, when year-over-year collections fell nearly 5 percent to $14.3 million.

"I wouldn't make too much about a comparison over just four months of the fiscal year except that things are going to get worse before they get better," said Carl Bonham, executive director of the University of Hawai'i Economic Research Organization.

The slowdown is likely to have an impact on tax collections needed to build the elevated train from East Kapolei to Ala Moana.

City officials hope to raise an inflation-adjusted $4 billion between 2007 and 2022 to pay for the 20-mile rail system. That, coupled with $925 million in anticipated federal funds, is expected to pay the $5 billion in capital costs associated with rail, according to the city.

Even with the slowdown, the city is still collecting much more than it is spending, because construction isn't scheduled to begin in full until late 2009.

In addition, the project's budget includes $1 billion to cover potential cost overruns, which could provide some budget leeway if tax revenues are lower than expected.

The city hopes that any near-term revenue shortfall could be offset by an economic rebound in future years.