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 and steam energy businesses). Additionally, as passed, the exported fuel tax would begin June 30, 2023 instead of Feb. 1, 2023.

Meanwhile, on Wednesday, the Transportation Revenue Forecast Council adopted a new transportation revenue forecast. The current forecast is lower than the Nov. 2021 forecast, but higher than the March 2021 forecast. It is still well below the pre-pandemic Feb. 2020 alternative forecast (which excluded the impacts of I-976—the initiative that was later ruled unconstitutional). According to the forecast summary, the February forecast is down from November “primarily due to lower fuel taxes, LPF [licenses, permits, and fees], ferry farebox and toll revenues.”

Under the Feb. 2022 forecast, transportation revenues are estimated to be $6.594 billion in 2021–23, a 7.7% increase over 2019–21. From FY 2020 through FY 2031, the Feb. 2022 forecast is estimated to be $1.717 billion lower than the Feb. 2020 alternative forecast.