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 from the coronavirus state fiscal recovery fund (CSFRF) for fish passage barrier removal. The bill included a note that the funding was dependent on fish passage barrier removal being determined to be an eligible use of the CSFRF. Apparently it is an eligible use, because the supplemental proposal would remove that language and leave the appropriation. Further, the governor’s proposal would add $230.2 million for fish passage barrier removal (compared to the enacted budget). That would bring the total spent up to $1.970 billion; as we noted in a recent policy brief, that’s still about $1.8 billion less than will be needed to finish the job.

Some other notable proposed appropriations:

• The climate commitment act (E2SSB 5126; enacted earlier this year) created the carbon emission reduction account. The governor’s supplemental would appropriate $123.0 million from the account this biennium, including $30.0 million to expand special needs transportation grants, $30.0 million to expand green transportation grants, $30.0 million to expand pedestrian and bicycle safety grants, and $15.0 million to expand safe routes to school grants.
• The proposal would appropriate $4.0 million for planning for a new ultra high-speed ground transportation corridor and it would set aside $50.0 million to be used for the state match for potential federal funding for the program.
• The proposal would increase funding for I-405/SR 522 to I-5 capacity improvements by $17.5 million—if a bill is enacted that would provide a sales and use tax deferral for transportation projects on the I-405/SR 167 corridor.

As I noted earlier this month, state transportation revenues are still below pre-pandemic estimates. The governor’s proposal would transfer $300.0 million from the CSFRF to the I-405/SR 167 express toll lane account and $200.0 million from the CSFRF to the SR 520 corridor account. Also, as I noted yesterday, the operating budget proposal would appropriate $337.9 million from the general fund–state (GFS) to the Puget Sound capital construction account and $54.0 million from the GFS to the multimodal account (both for use in the transportation budget).

The governor’s office provided detailed balance sheets for 49 transportation accounts under his proposal. As shown in the table, under the governor’s proposal, none of the accounts would have a shortfall in 2021–23, four would have a shortfall in 2023–25, and eight would have a shortfall in 2025–27.