Washington State Ferries (WSF)’s budget is in tough shape. It does not have enough money to maintain existing service levels, replace aging vessels and keep terminals in proper shape. But lawmakers and citizens alike are working to stabilize it and build a ferry system that’s safe and affordable, providing good, sustainable service on our marine highways.

How did this happen? Voters eliminated the motor vehicle excise tax in 1999, devastating WSF's finances, and that critical revenue source has never been replaced. But there was also bloat in the budget, and mismanagement.

Since 2006, the Legislature has directed a massive effort to scrutinize the budget for efficiencies, develop better ways of doing business, evaluate new revenue options, and create a long-term sustainable plan for the ferry system. This is the year that plan comes together. Tough, new leaders are now in charge at the ferry system. They are working with the legislature and the public to develop the most economical, sustainable and reliable path forward.

Senate Bill 5768 endorses a 4-lane deep bore tunnel as the preferred design to replace the Alaskan Way Viaduct. The bill caps the state’s contribution at $2.4 billion, money which has already been earmarked for this project from voter-approved taxes. The bill also calls for up to $400 million in tolls. The bill passed the Senate on a 43-6 vote, and is in the House Transportation Committee awaiting public hearing.

House Bill 2211 is the SR 520 tolling bill. It tolls only the 520 bridge corridor, not I-90. The bill authorizes so-called “early” tolls – tolls up to $3.25 in each direction that would be imposed on the existing bridge – and slightly higher tolls once the floating bridge project is complete. Tolls would vary by time of day and traffic conditions.

Why early tolls? Tolling early raises more funds and significantly reduces the cost of borrowing. Early tolls would pay for early projects, such as construction of the pontoons that support the floating bridge, and parts of the project for which design decisions have already been made.

On March 5, Gov. Gregoire signed into law House Bill 1978, the Legislature’s plan to create jobs and keep Washington moving by appropriating $341 million in federal funds from the American Recovery & Reinvestment Act of 2009. Half of the funds must be under contract within four months and the rest within one year to create an immediate economic boost for Washington and 3,300 jobs in communities across the state.

Washington took the honors as the first state in the nation to put these federal dollars to work. The urgency of our economic situation led to widespread collaboration and cooperation among state and local officials. As a result, 35 state projects are funded. They will create jobs while relieving congestion, improving safety and preserving our roads and bridges.

Local governments, including Seattle, will receive their share as well. Transit agencies are in line for $179 million, and local jurisdictions will share $151 million for roads and other projects. Congress provided another $11 billion for national competitive grants. Applications are already underway for projects like 520 bridge across Lake Washington, ferry terminals, rail lines and some larger highway projects.

Some have criticized the state for not appropriating its $341 million to local projects, such as the Spokane Street and Mercer Street improvements in Seattle. Transportation leaders in the Legislature have pointed out that the state funds were appropriated to state roads, such as I-90, SR-2, I-405, I-5 and more.

Federal officials determined the overall allocation strategy when they decided some money would go directly to the states, some would go directly to local governments and some would go directly to transit agencies. Knowing that, state transportation leaders decided to fund highway projects across the state, while local jurisdictions could allocate their money toward roads and transit in their communities.

In the four-county central Puget Sound area (King, Pierce, Snohomish, Kitsap), the local authority is the Puget Sound Regional Council, which received $78 million to distribute for local road projects and $136 million for transit. The decision of how to allocate those funds for specific local projects is up to the PSRC.

On top of this economic recovery money, Seattle and King County also continue to reap some of the biggest rewards from the 2003 and 2005 gas-tax increases and other revenues: $2.4 billion to replace the Alaskan Way Viaduct; $1.5 billion in the I-405 corridor; $1.6 billion for the 520 bridge, and tens of millions more for I-5 widening and concrete replacement.