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Transportation budget’s exported fuel tax replaced with annual transfers from the general fund and public works assistance account

The transportation package that was proposed in February would have increased transportation revenues by $16.801 billion over 16 years. That included $2.053 billion in revenues from a new tax on exported fuel. The exported fuel tax provision was later stripped by the House. The conference report for the transportation budget would increase revenues by $16.988 […]

State transportation revenues are now estimated to be higher than expected last March

The Senate passed ESSB 5974, the transportation revenue package, earlier this week. I wrote about the bill as proposed here. Notably, before passage the bill was amended to remove the provision allowing cities to impose a 2% tax on the privilege of conducting a telephone business (the tax would still be allowed for natural gas […]

Proposed transportation package would use carbon allowance auction proceeds and state operating funds, increase fees, and impose a new exported fuel tax

Yesterday the chairs of the Senate and House transportation committees proposed a transportation package that would provide $16.801 billion over 16 years (FY 2023 through FY 2038). SB 5974 (the revenue bill) is scheduled for public hearing in the Senate Committee on Transportation tomorrow. (SB 5975 is the spending bill. Summaries and project lists are […]

Gov. Inslee’s 2022 supplemental transportation budget proposal would increase total budgeted transportation funds by 5.1% and shift federal and state funds into transportation accounts

The governor’s proposed supplemental transportation budget would increase appropriations from all funds by $610.7 million. Revised 2021–23 appropriations would total $12.549 billion, a 5.1% increase over the enacted biennial budget. Of the increase, state funds account for $356.9 million and federal funds account for $234.7 million. The enacted 2021–23 biennial budget had appropriated $400.0 million […]

State transportation revenues are still below pre-pandemic estimates

Revenues to funds subject to the outlook (NGFO), which fund the operating budget, were essentially back to pre-pandemic levels by March 2021. With the Nov. 2021 forecast, NGFO revenues are up $8.566 billion (5.1%) through 2023–25 (compared to the pre-pandemic Feb. 2020 forecast). State transportation revenues are a different story. According to the Nov. 2021 […]

Good news for state and local transportation budgets: state Supreme Court finds I-976 unconstitutional

Today the state Supreme Court held that Initiative 976 is unconstitutional because it “contains more than one subject, and its subject is not accurately expressed in its title.” I-976 was approved by voters last year. It would have limited vehicle license fees to $30, revoked the authority of transportation benefit districts to impose vehicle fees, […]

Given the economic downturn, Gov. Inslee vetoed some provisions in the transportation budget

Gov. Inslee signed the supplemental transportation budget yesterday, but he vetoed several sections. As passed by the Legislature, the budget appropriated $10.373 billion. (That’s an increase of $538.0 million over original 2019–21 appropriations.) Transportation budget writers were working under constraints imposed by the passage of I-976 last year. The Seattle Times reported, The $10.4 billion […]

The transportation revenue forecast and I-976

Both the Senate and House Transportation committees held work sessions last week that included discussions of the impacts of I-976. (TVW has video of the Senate and House committee meetings.) A Senate staff presentation showed balance sheets for each affected account. Given the 2019–21 appropriations made earlier this year and the revenue reductions under the […]

Tax policy after the election

In the wake of the passage of I-976 and the results of some local races, tax policy is an emerging theme. For example, King County Executive Dow Constantine used the occasion to call for comprehensive state tax reform: Our state’s tax system is inefficient, unfair, volatile, inadequate, and bad for business. Local governments have few […]

How to respond to I-976?

There is a lot of talk today about how state and local governments will respond to the passage of I-976. In the Seattle Times, Heidi Groover and Mike Lindblom have a thorough story on the issue. The fiscal impact statement for the initiative estimated that it would reduce state revenue by $478.1 million in the […]