OLYMPIA – An appropriation of $4.6 billion for more than 400 transportation construction projects will be on its way to communities across the state, according to the 2009-11 transportation budget proposed today by Rep. Judy Clibborn (D-Mercer Island), chair of the House Transportation Committee. The combined total for capital and operating investments over the next two years is $7.5 billion. The investments are directed at state highways, mega-projects, ferries, transit and more. Together with $341 million in federal economic recovery funds already appropriated this legislative session, the House’s proposed budget is addressing transportation needs with unprecedented resources.
“This budget reflects our commitment to maintaining a sound transportation infrastructure across Washington,” Clibborn said. “We’re financing scores of highway projects, keeping our mega-projects on track and reforming our ferry system.”
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.
“We’re on track to see the largest transportation construction season ever this summer, as we realize the full effect of recent investments and the federal stimulus dollars. With this budget, we’re forging ahead with building Washington’s infrastructure and spurring job creation when it’s needed most,” said Rep. Marko Liias (D-Mukilteo), vice chair of the House Transportation Committee. The $4.6 billion is expected to generate 46,000 jobs over the next two years.
Transportation projects are fully funded over the next six years in the House budget, according to current projections. Despite some weakening in fuel-tax revenues due to the economic downturn, budget writers realigned some projects and found several efficiency opportunities to make existing dollars go further.
For example, the House chair’s budget books nearly $1.8 billion in ferry savings by prioritizing vessel construction over major terminal improvements, reducing the use of consultants, cutting overhead, investing preservation dollars more strategically, and other savings.
Other budgetary savings include directing transportation agencies to identify five percent in operational efficiencies and closing nine Department of Licensing offices, since drivers can now renew their licenses online. In total, savings of roughly $412 million are identified over 16 years.
The budget comprehensively addresses the state’s transportation infrastructure, including scores of highway improvements as well as progress on:
Ferries: Ferry reform takes shape as the budget authorizes the continuation of current service levels and the construction of five new vessels. Vessels are prioritized over terminals. Work can begin now on three 64-car Island Home ferries to be delivered by 2012, and construction begins in 2014 for two 144-car ferries. The MV Hyak vessel will be rebuilt to get another 30 years of life. Budget writers found $1.8 billion in savings compared to the ferries’ Plan A, helping to begin the process of ferries returning to long-term financial viability.
Mega-projects: The project to replace Seattle’s vulnerable Alaskan Way Viaduct is allocated $2.4 billion – the same level as in past budgets. The Tacoma HOV-lane project is set to receive $1.5 billion, up from $1.4 billion in the 2008 budget. Interstate 90 at Snoqualmie Pass will receive $600 million. For the SR 520 bridge replacement, the budget assumes $1.2 billion in new funds, pending the passage of tolling and bond bills, HB 2211 and 2326, respectively. This brings the total state investment to $2.6 billion.
Rail: $124 million overall investment, including a new $3 million for short line railroad projects in the Northern Columbia Basin and Chelatchie Prairie. A study is authorized for a small commuter train between Auburn and Maple Valley to connect with Sound Transit’s Sounder station. The Kelso-to-Martin’s Bluff and the Point Defiance bypass projects are delayed due to revenue constraints. Those projects are top candidates for some of the $8 billion in federal stimulus rail grants for which DOT is applying right now.
Transit and green transportation: $26 million for special-needs transit improvements; $20 million in rural mobility grants; $40 million for regional mobility grants; $400,000 to begin high-volume, flexible carpooling; $5.6 million for vanpooling; $500,000 for increased park-and-ride capacity; $5 million for commute trip reduction; $14.5 million in stormwater projects; and $500,000 for climate change work at DOT.
Over the short term, the transportation budget is in solid financial shape; however, structural funding challenges have emerged, presenting problems over the long-term picture. As cars become more fuel-efficient and individuals and businesses have scaled back their driving due to economic conditions, the state’s gas and diesel tax revenues are taking hits.
The recent transportation revenue forecast in March showed a $3 billion (eight percent) drop over the next 16 years compared to the February 2008 forecast. In addition, this budget accounts for the full cost of capital investments the ferry system needs in order to provide safe, reliable service. These two factors have led to costs for the 16-year long-term plan rising more than $2 billion since the 2008 budget. As a result, there is a shortfall expected in the ferries capital account and motor vehicle account beginning in 2015-17.
Clibborn’s budget calls for the Legislature’s Joint Transportation Committee to study the long-term funding issues in order to determine how to best pay for the state’s transportation system in the coming years. She notes that new money will be needed to fund such critical projects as the Columbia River Crossing, US 2 safety improvements, US 395 North-South freeway, more ferries and others.
For more information, the proposed budget is available here. A summary is available here.
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