The Department of Transportation (WSDOT) has requested $1.060 billion from all funds for the 2024 supplemental. That would be an increase of 10.4% over enacted 2023–25 appropriations for the agency. However, the supplemental request does not include the estimated additional $725 million that could be needed for fish passage barrier removal in 2023–25.

Additionally, the transmittal letter from WSDOT to the Office of Financial Management notes,

The department recognizes the state’s fiscal limitations based on current forecasted revenues, but there is still a significant unfunded need. . . .

[I]t is important to note that the enacted budget appropriations do not fully fund the 2023–25 capital project list. Projects supported by the state sources in the Connecting Washington and Move Ahead Washington accounts would need at least an additional $265 million and $165 million respectively to align with legislative project list delivery expectations.

Of the agency’s request, $676.4 million would come from state funds and $358.5 million would come from federal funds. Of the $1.060 billion, $132.0 million would be new appropriations and $928.2 million would be reappropriated.

The largest item is $903.4 million for reappropriation of funds for capital work “that was expected to be done in 2021–­23, but did not progress as planned and will need to be done in the 2023–­25 biennium.” Of the $903.4 million, $389.5 million is for improvements, $252.0 million is for preservation, $104.4 million is for local programs, and $99.5 million is for ferries.

Additionally, WSDOT requests $30.5 million “to reflect current spending plans on legislatively approved projects.” As part of that, preservation spending would be reduced by $16 million and funding for ferries would increase by $29.5 million.

Many of the agency’s requests note the impacts of higher costs, fewer bids, labor shortages, and supply chain disruptions. For example, WSDOT is requesting:

•  $23.5 million in 2023–25 and $23.5 million in 2025–27 “to mitigate a rise in the cost of specific maintenance materials.” The highway maintenance materials specified are guardrails, guardrail posts, signposts, beads (reflective material), herbicides, and deicing compounds.
• $23.7 million in 2023–25 and $32.7 million in 2025–27 for “labor costs for existing staffing at Washington State Ferries.”
• $24.1 million in 2023–25 and $48.2 million in 2025–27 for additional ferry crew members above the federally-mandated minimums. According to the request, this would mean “fully restored service, regardless of season or route, plus an additional Ordinary Sailor and an additional Oiler on each watch.”
• $4.3 million in 2023–25 to support “workforce development efforts to address the shortage of licensed vessel deck officers by qualifying able bodied sailors to become mates.”

The chart shows actual WSDOT spending (of both operating and capital dollars) through 2021–23, enacted appropriations for 2023–25, and WSDOT’s 2024 supplemental request. Although the enacted 2023–25 biennial budget appropriates significantly more than was spent in 2021–23, actual spending in 2023–25 will be well below the appropriated level, as we discussed in our recent report on the transportation budget.

(Previous posts on agency 2024 supplemental budget requests are here.)