The conference report for the supplemental transportation budget would increase appropriations from all budgeted funds by $1.099 billion (8.1%). Revised 2023–25 appropriations would be $14.714 billion, which is $24.3 million higher than the version passed by the Senate Feb. 27 and $252.0 million higher than the version passed by the House Feb. 24. (I wrote about the Senate- and House-passed versions here.)

Although the enacted 2023–25 transportation budget balanced over six years, the conference proposal would just balance through 2025–27. Additionally, according to the Senate summary document, “Given the unprecedented size of the capital program, this proposed budget recognizes there may be some delivery challenges and includes an underrun assumption from certain accounts supporting the Improvements Program and Local Programs.” (As we wrote in our report on the transportation budget and revenues, historically capital spending has been lower than the appropriations level.) The Senate summary adds that the conference report’s underrun assumption helps with

balancing the capital spending program against available resources though the 2025-2027 biennium. While project list totals are not impacted by this assumption, appropriations for the Improvements Program and WSDOT Local Programs are reduced by $445 million and $40 million respectively across the Connecting Washington Account, Move Ahead Washington Account, and Motor Vehicle Account to reflect this delivery expectation.

One of the major differences between the House- and Senate-passed versions was how they dealt with the SR 520 West End project. The conference report would fund the project as in the Senate version (increasing planned spending by $629.6 million over the life of the project). The conference bill adds language directing WSDOT to proceed with awarding the bid on the project but directs WSDOT to “seek consequential cost reduction opportunities through value engineering and prioritizing functionality and usability of the Portage Bay Bridge and Roanoke Lid.”

Additionally, the conference report would require the capital projects advisory review board to review planned procurement methods before WSDOT may initiate requests for these projects:

• SR 9/Marsh Road to 2^nd Street Vicinity,
• SR 526 Corridor Improvements,
• US 395 North Spokane Corridor, and
• SR 18 – Widening- Issaquah Hobart Rd to Raging River – Phase 1.

Then WSDOT would be required to structure the requests “in a manner that provides a high degree of certainty that bids come in as expected according to engineer estimates made through the cost estimate valuation process.” Further, if bids exceed engineer estimates by more than 5% or $10 million, WSDOT would have to report it to the Legislature and pause awarding of contracts.

A few notable capital projects in the conference report include:

• Fish passage barrier removal: $150.0 million in 2023–25.
• Highway preservation: The conference proposal would shift $100.0 million in Move Ahead WA funding up to 2023–25 (from future years). However, the proposal would reduce lifetime Move Ahead WA preservation funding by $40.0 million.