Both the Senate and the House Democratic Caucuses released their 2021-2023 biennium and second 2019-2021 supplemental transportation budgets on Monday. These proposed budgets come from the chair of the transportation committee in each chamber. 

The House proposed budget for the supplemental and biennial budget provides a spending authority of about $9.5 billion and $10.9 billion, respectively. The Senate’s proposed budget includes just over $9 billion in supplemental appropriations and $11.7 billion.

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The House Version:

House Transportation Chair Jake Fey (D-Tacoma) said that the state is in a much better position than last year.

Last year, transportation was in a terrible fiscal position due to revenue losses from the COVID pandemic, the pending I-976 case, and the need to fund fish passages. We are in a much better position today after the state Supreme Court rejected I-976 and the federal stimulus provided $800 million in transportation funding.”

The new two-year budget, HB 1135, is designed to adapt to the changes in the financial picture for transportation. Fey said that the long-term challenges of declining gas tax revenues and higher transportation costs remain a huge issue for the budget outlook. He said that this budget is designed to invest in green transportation, major construction projects and policy reforms that will boost equity and opportunity.

Our state’s transportation system needs to be cleaner, greener, and more inclusive. Ten years from now, how we get around, and who’s wearing the hard hats on state projects, should look quite different due to the changes in this transportation budget.”

The major spending in the House budget for green transportation and electrification is $152.5 million which will go to the state’s first hybrid-electric ferry that begins construction in spring of 2022, along with funding for the material for a second vessel. 

The first hearing for HB 1135 is scheduled for March 23 at 3:30 pm in the House Committee on Transportation.

The Senate Version:

According to the breakdown of the Senate budget, the proposal was based on the March 2021 revenue forecast. The forecast showed that the COVID-19 pandemic has continued to have negative impacts on nearly all transportation revenue sources.  The projected revenue decline associated with Covid-19 and other factors is estimated at $669 million (9.9%) for the 2019-21 biennium, $454 million (6.5%) for the 2021-23 biennium and $1.9 billion (5.4%) over the ten-year time horizon compared to the pre-pandemic February 2020 forecast.

Senator Steve Hobbs (D – Lake Stevens), chair of the Senate Committee on Transportation, said the revenue decline had a major impact on the budget.

Transportation revenues were in decline before the pandemic hit and this budget reflects the difficult situation we’re in. We’re hopeful that some of the incoming federal money will help us fill the gaps, but our infrastructure needs are badly outpacing funding for these projects. If nothing else this budget perfectly illustrates the need for a transportation revenue package such as my Forward Washington plan.”

The Senate budget includes $5.8 billion in spending for capital programs, an increase of 4% from the enacted 2019-2021 supplemental budget. This is due to the number of projects that were delayed from the previous biennium. The state is also hitting the peak of spending in the planned 2015 Connecting Washington transportation investment plan.The operating expenditures that are expected includes about $5.9 billion. This is similar to the 2019-2021 supplemental budget. 

Senator Rebecca Saldaña, deputy majority leader, said that the budget is still very bare bones.

Thankfully because of the Supreme Court decision around [Initiative] 976 and also some federal relief, we’re in a better position than we would have been as we were leaving last session. What is important in this budget, is that it’s still bare bones. While it seeks to meet our Senate Democrats priorities of safety, addressing our obligation around the culvert and keeping Reconnecting Washington project’s going. And there is a lot that it lacks in terms of building back the kind of recovery we need for our locals, our public transit and for our economy. But we are glad to have a partner in the federal administration now that is willing to make sure we are investing in infrastructure.” 

The budget bill, SB 5165, is scheduled to have its first hearing in the Senate Committee on Transportation on March 23 at 4 pm. 

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