WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

House transportation plan connects state, generates jobs

Clibborn, Armstrong unveil $8.9 billion two-year budget; 43,000 jobs expected
 

OLYMPIA – Transportation leaders in the House of Representatives today unveiled a two-year plan to better connect Washington, generate jobs and promote commerce. The $8.9 billion transportation budget proposal for the 2011-13 biennium takes a multi-modal approach to planning for future needs with investments in highways, ferries, commercial and passenger rail, transit, and bicycle and pedestrian improvements. More than 43,000 jobs are expected to be created or sustained through the budget’s $4.9 billion capital construction plan.

“Maintaining and expanding our infrastructure is essential to our economic recovery,” said Rep. Judy Clibborn, D-Mercer Island, chair of the House Transportation Committee. “With this budget, we’re keeping our commitment to connecting the state. We want to minimize disruption and promote efficient travel so commuters can get to work and freight can reach its destinations.”

“This is a lean budget that addresses Washington’s transportation needs in a fiscally responsible manner,” said Rep. Mike Armstrong, R-Wenatchee, and ranking Republican of the House Transportation Committee. “Taxpayers have been clear they don’t want lawmakers to increase taxes and want us to use tax dollars more efficiently. I believe this budget accomplishes those goals.”

The budget maintains the momentum of existing projects across Washington, including the 2003 “Nickel” and 2005 Transportation Partnership Program packages, of which nearly 300 projects are already completed. About $3.9 billion is provided to continue remaining projects in the next biennium.

Legislators say they’re pleased with the money-saving reforms achieved within the ferry system. Labor unions and ferry management recently reached a tentative agreement that is expected to save $20.5 million for the rest of the current biennium and 2011-13. Administrative reductions will save an additional $5.8 million.

Service reductions will save $3.1 million, but they are much less than what the governor proposed in December. Legislators had considered authorizing a dynamic fuel-surcharge on fares to recoup surging fuel expenses, but after hearing that ferry riders would prefer stability in pricing, officials opted for a one-time five percent fare increase, in addition to the standard 2.5 percent annual increase, for a total 7.5 percent increase this year and 2.5 percent increase in 2012.

The ferry system has struggled financially since a major source of its income, the state’s motor vehicle excise tax, was removed in 1999. Meanwhile, fuel, labor and shipbuilding costs have shot up well beyond the rate of inflation.

Taking into account the diversity of transportation preferences across the state, the budget makes significant multi-modal investments, including $402 million for passenger rail, $237 for ferry terminals and vessels, $88 million for urban and rural transit, $44 million for freight rail and $11 million for the Safe Routes to School and bicycle-pedestrian safety programs.

Although leaders say the transportation budget situation isn’t as grim as the state’s operating budget, challenges do exist on the immediate horizon. Projections released last week show that revenue will be down $100 million for the 2011-13 biennium (a two-percent drop) compared to last year’s projection. A slow economy and more fuel-efficient and alternative-power vehicles mean that fuel-tax revenues are dropping. Moreover, many of the projects approved in the 2003 and 2005 revenue packages are completed or nearing completion. Because the remaining revenue stream will be used to pay off the projects’ bonds over the next 25 years, Clibborn says a new revenue package will be needed at some point to start new projects.

Budget writers included several belt-tightening measures. Transportation agencies will trim their daily operational expenses by $29.5 million. A three-percent salary reduction will save $18 million, and the suspension of cost-of-living increases for Plan 1 retirees will save $14 million. Tolling operations at the Tacoma Narrows Bridge will achieve $4.5 million in savings due to efficiencies in using contracted services.

For more information, the proposed budget is available here.