A proposal to sharply reduce state and local transportation revenue will be heard this week.

Initiative 976, an Initiative to the Legislature, would:

• Reset annual license fees on motor vehicles to $30;
• Repeal certain taxes and charges including taxes funding regional transit authorities and ferry service;
• Redefine vehicle valuations using the Kelley Blue Book value;
• Require retirement or refinancing of certain regional transit authority bonds; and
• Repeal the authority of city and county Transportation Benefit Districts (TBDs) to use fees as a revenue source.

If passed, the initiative would have a significant impact on our state’s transportation system. Fiscal estimates show that it would cost state and local governments $700 million in the 2019-21 biennium and just under $800 million in the 2021-23 biennium. The loss of city transportation benefit district revenue would amount to more than $116 million per biennium.

The Legislature has a limited number of options with an Initiative to the Legislature. They can:

• Pass it into law;
• Send it to the November ballot alone; or
• Send it to the November ballot with an alternative or with multiple alternatives.

At this time, it appears unlikely that the Legislature will pass it into law or suggest an alternative.

AWC will oppose the proposal during the legislative session and will continue to keep you updated on I-976’s potential impact to your communities and ways you can further engage on this issue.

Once the legislative session ends, I-976 will be a ballot measure subject to PDC restrictions.

Dates to remember

The proposal will be heard on Tuesday, February 26 at 1:30 in both the Senate and House Transportation Committees.