Legislature releases details of final $7.5 billion state transportation budget

Officials expect investment to translate into roughly 46,000 jobs through construction of more than 400 projects across state

April 24, 2009

OLYMPIA – The Legislature today unveiled the final version of a $7.5 billion 2009-11 state transportation budget, which will finance more than 400 projects across the state, generating 46,000 jobs. The final budget represents the compromise between the budgets passed by the House and Senate earlier this legislative session. Rep. Judy Clibborn (D-Mercer Island), chair of the House Transportation Committee, said the transportation budget is one area of strength in an otherwise tough budget year amidst the economic downturn.
 
“The transportation budget is the good news in a bad-news economy,” Clibborn said. “We’re actually on the verge of the busiest transportation construction season ever for Washington state. When you take into account this budget and the federal stimulus dollars we appropriated earlier this session, we’re looking at an unprecedented transportation investment.”
 
After the budget cleared the House and Senate floors, the respective transportation committee leaders began working together in conference to smooth out the differences into a single conference budget. This conference budget now goes to the floor of the House and Senate one last time for final concurrence, before it moves to the governor’s desk to become law.
 
“I want to thank my colleague Senator Haugen, chair of the Senate Transportation Committee, for the quality of our collaborative partnership between the House and Senate as we reconciled our budgets,” Clibborn said. “The process moved forward smoothly and efficiently, which is what our citizens expect.”
 
The overall transportation revenue picture has dimmed to the tune of $3 billion over the 16-year long-term plan since the outlook of the previous transportation budget, but lawmakers were able to find efficiencies and modify financing methods so that project delays were kept to a minimum. For example, the budget continues to authorize the governor’s hiring freeze and directs transportation agencies to reduce operating expenditures by five percent, saving $21 million per biennium. The Department of Licensing is authorized to close up to 25 licensing service offices, in consultation with the Legislature to ensure adequate coverage for local citizens. Additionally, the budget assumes the issuance of 30-year rather than 25-year bonds, which not only help accomplish construction goals but also better align with the useful life of the assets being built.
 
The long-term revenue forecast is dropping due to declining fuel-tax revenue as citizens and businesses have pared back their driving habits and are opting for more fuel-efficient vehicles. The Legislature recognizes this trend and has authorized the Joint Transportation Committee to conduct a study on how the state can continue funding its transportation system in a way that is less reliant on the declining fuel-tax revenue. 
 
In developing the budget, transportation leaders focused on keeping on track the state’s mega-projects and those of regional significance because of their critical economic importance. They also focused on progressing and funding the 2003 “Nickel” and 2005 Transportation Partnership Act projects. Another major priority was building more ferry vessels.
 
A budget summary, project lists and the full budget are available here.