Blog

As CCA revenues are expected to decline, Legislature reworks their distribution

In the supplemental budgets, the Legislature increased 2025–27 appropriations from climate commitment act (CCA) accounts by $1.125 billion. Of that, $89.0 million was in the operating budget, $839.9 million was in the capital budget, and $196.5 million was in the transportation budget. (As I showed last month, $539.9 million of the capital CCA appropriations is […]

Supplemental transportation budget would use bonds to fund new highway preservation spending

The 2025–27 biennial transportation budget balanced thanks to a revenue package that included an increase to the gas tax and increased sales taxes on transportation-related transactions. The tax and fee increases were expected to increase revenues by $1.885 billion through 2027–29. These funds were used mainly to shore up existing projects. Nevertheless, the biennial budget […]

Transportation revenues are now forecasted to be lower than assumed in 2025–27 transportation budget

Transportation revenues are forecasted to total $8.741 billion in 2025–27, $10.747 billion in 2027–29, and $10.273 billion in 2029–31. The enacted 2025–27 transportation budget balanced through 2027–29. The Legislature adopted a revenue package last year that was used mainly to cover shortfalls in existing transportation projects. With the February revenue forecast, transportation revenues for the […]

Will the dedication of 0.1% of the sales tax to the transportation budget be scrapped?

The Washington State Standard reports that there is talk among legislators of reversing a planned transfer of ongoing revenues from the operating budget to the transportation budget. In December 2024, legislative staff estimated that there would be substantial shortfalls in the transportation accounts. The 2025–27 transportation budget included a revenue package that was used mainly […]

November transportation revenue forecast is lower than in September, but still higher than assumed in budget (plus, a drop in CCA auction revenue will affect transportation budget beginning in 2029–31)

Transportation revenues are now expected to total $8.135 billion in 2023–25, $8.842 billion in 2025–27, and $10.833 billion in 2027–29. Over this three-biennia period, the November transportation revenue forecast is $67.0 million less than forecasted in September, but it is still $69.0 million higher than expected in the transportation budget enacted this year. Inflation-adjusted transportation […]

Despite downward revision, transportation revenues are still expected to exceed revenues assumed in budget

According to the September transportation revenue forecast, transportation revenues are expected to total $8.115 billion in 2023–25, $8.909 billion in 2025–27, and $10.853 billion in 2027–29. Over this three-biennia period, the revenue forecast is $144 million lower than forecasted in June. However, the September forecast is still $136 million higher than expected in the enacted […]

New brief: With New Revenue Package, the Transportation Budget Balances Through 2027–29

To address transportation budget revenue and cost challenges, the Legislature increased transportation taxes and fees. New revenues include the first gas tax increase since 2015 and increases to the retail sales and use taxes owed on several transportation-related transactions. Additionally, beginning in 2027–29, 0.1% of state sales and use tax collections is dedicated to the […]

Better news in the transportation revenue forecast

The Transportation Economic and Revenue Forecast Council now estimates that transportation revenues will be higher than assumed in the enacted 2025–27 transportation budget. (By contrast, revenues from funds subject to the outlook are expected to be lower than assumed in the 2025–27 operating budget.) Economic changes in the transportation revenue forecast are estimated to increase […]

0.1% of state sales tax would be shifted to the transportation budget

The Legislature has passed 2SSB 5802, which would transfer funding between the operating and transportation budgets. Effectively, these changes would help to alleviate the operating budget’s FY 2026 problem while also setting up a permanent funding stream for the transportation budget. First, the bill would transfer $225.9 million from the multimodal account (transportation budget) to […]

The transportation revenue forecast has improved since November, but revenues are still lower than assumed in the enacted transportation budget

The March 2025 forecast of transportation revenues is up compared to the November 2024 forecast. However, the new forecast is still significantly lower than the February 2024 forecast (on which the enacted budget is based). Compared to November, the new forecast for the current 2023–25 biennium increased by $49.2 million, to $6.855 billion. The forecast […]