Things Don't Look Good for Transit Next Year

By Erica C. Barnett, Friday, December 4, 2009 at 3:10 PM
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Bill LaBorde, lobbyist for the Transportation Choices Coalition, just unveiled the TCC’s legislative agenda for 2010. As we mentioned in Morning Fizz, the next year (and possibly 2011) looks pretty grim: A short session (60 days), combined with a $2.6 billion budget shortfall, leaves only  a few weeks for all of the state’s interest groups to propose legislation and push it through committees. “It’s a very difficult timeline, and I don’t expect to see much earth shattering happening outside the general fund issues this session.”

Currently, local transit agencies are hurting because they’re heavily dependent on sales taxes, which are falling short. Meanwhile, counties like King County are maxed out on how much they can raise sales taxes, and other counties, like Pierce, have historically been unfriendly to tax increases (especially tax increases intended just to stave off even deeper cuts). In some parts of the state, LaBorde said, local governments are looking at sales tax shortfalls of 20 percent. So clearly, transit advocates see a need for new revenue sources, and soon.

The question is whether those new revenue sources should be temporary (like allowing transit agencies to put a $20 car-license fee on the ballot, a proposal Gov. Gregoire vetoed last year) or long-term (like a sales tax on gas, a motor-vehicle excise tax, or an emissions tax on vehicles). TCC along with the Sierra Club, the Cascade Bicycle Club, Futurewise, WashPIRG, the Discovery Institute, and the Bicycle Alliance of Washington wrote a policy paper calling for a long term solution last session.

The former strategy could provide transit agencies with an immediate infusion of cash (an estimated $25 million for King County Metro alone), but comes with a big risk. The transportation committee chairs in both houses—Mary Margaret Haugen (D-10) in the Senate and Judy Clibborn (D-41)  in the House—are currently planning to roll out a big transportation package in 2011. If the legislature passes a $20 local option now, Haugen and Clibborn may “just say, ‘OK, we fixed your problem, so now [we don't have to come up with a long-term solution] and we can just raise the gas tax,” which can only pay for roads, LaBorde says.

On the other hand, if transit advocates wait for a future transportation debate to go after new transit funding, they may end up sitting around with no new revenue for years, especially if (as LaBorde thinks is likely) the economy doesn’t improve by 2011.

In addition, LaBorde said, TCC may take advantage of the fact that House Speaker Frank Chopp (D-43) has expressed support for allowing local governments to use their hotel/motel taxes for housing. King County’s hotel/motel tax is currently paying off bonds on Seattle’s downtown stadiums; that money will become available for other purposes in 2016. LaBorde suggested that TCC might support spending some of that money on affordable housing near transit stations—one of the major goals of last year’s transit-oriented communities bill, which would have increased density around light rail stops.

LaBorde said TCC would continue to push for incentives for pay-as-you-drive insurance, which charges drivers based on how much they drive. “It’s a nice incentive for people who don’t drive very much,” LaBorde said. “It has a nice equity value to it for seniors and lower-income people who don’t have as much reason to drive or can’t drive that much.”

  • 830 million dollars through 2028, that is.
    Chris Van Dyk got over the fact that KeyArena is in the bill, so can you.
  • King County’s hotel/motel tax is currently paying off bonds on Seattle’s downtown stadiums; that money will become available for other purposes in 2016.


    Most will sunset by 2016 if there is no legislative action, a few might sunset before the 2011 session if no action is taken in this short session. Once bonds are paid off early at Safeco they close the tax.
    There is similar language in the Hunter bill the Chopp influenced, that passed the House and was captured by the Senate Ways and Means committee.
    http://apps.leg.wa.gov/billinfo/summary.aspx?bi...
    Then is was kicked to the curb, substituted by SB6116 where Dow, then Hunter, everybody, and there brother, finally Chris Van Dyk, testified in favor of it. The only opposition was from the car rental folks, and Coug fans arguing with Ed Murray (he's wearing a purple tie, they did not know when to shut up, though he encouraged them to do so - comedy).

    Husky Stadium was removed on the floor with a striker, but it was too late (Coug fans flipped some Republican votes, Ed Murray's words - not mine, but I have no doubt about it). It was recalled with the end of the session vote to recall bills on the floor to committee.

    You might want to read it, look at the fiscal note, yes it is about 830 million dollars, but know that the Safeco lease ends in 2018-2019 and they are gonna needs some of that back to repair the moving parts of that roof and upgrade the 20-year-old stuff built to last 20 years. As currently structured Seattle would retain taxes generated in the city for stuff in "new section 6".
    SB6116

    The "problem" Hunter had with his own bill, 2252 was that it was too "prescriptive"
    For the years 2016 through 2020:
    n 33 percent for art museums, cultural museums, heritage museums, heritage and preservation
    programs, the arts, and the performing arts;
    n 10 percent for regional centers in the unincorporated area and cities with a population less than
    400,000;
    n $3 million each year for community development; and
    n $8 million each year for deposit into a transit-oriented development facilitation fund.

    Ack!
    6116 would let the county and city figure it out within broader parameters.

    HB2252 has a sweet spreadsheet link here in the EBB that shows the breakout of the funding sources and when they are planned to sunset (and where the House thought they should go).

    Both the House and Senate bills have the restaurant tax ending in 2015.
    Lastly, the 1st sub in the bill book for SB6116is pretty good, shows the summary.
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