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Advocacy


Published on Feb 01, 2021

Senate Democrats unveil transportation revenue package

Contact: Marian Dacca, Maggie Douglas

On Wednesday, January 27, Sen. Steve Hobbs (D–Lake Stevens), Chair of the Senate Transportation Committee, released his nearly $19 billion transportation revenue package. The proposal includes the following revenue sources:

  • Fuel tax: increase of $0.06
  • Tax on new construction
  • Per trip tax on for-hire vehicles
  • Rental car tax
  • Air Quality Surcharge on the purchase of new vehicles
  • Various other taxes and fees

The proposal also includes two carbon-based options to generate revenue:

  • Option 1: A carbon fee of $20 per metric ton
  • Option 2: 50% of state revenues generated from a Cap and Invest system

Other key investments included in the proposal:

  • Transportation Improvement Board (TIB): $100 million
  • Freight Mobility Strategic Investment Board (FMSIB): $50 million
  • Fish passage barrier removal: $3.5 billion, including investments based on watersheds and funding for both state and local culverts
  • Direct distributions to cities and counties for local maintenance and operation needs: $375 million
  • Bicycle/pedestrian improvements: $165 million
  • Safe Routes to Schools: $60 million
  • Complete Streets (administered through TIB): $90 million

A brief summary of the revenue proposal can be found here. A summary of the expenditures can be found here. The current project list can be found here.

On January 28, Marian Dacca testified on behalf of AWC, expressing support for a transportation revenue package. She shared data from the recent Joint Transportation Committee study that found that in the next ten years, cities will need to spend $20-$28 billion to maintain and improve our transportation assets, not including what is needed for deferred maintenance and preservation. She acknowledged that the development of a proposal is an ever-evolving process and that cities will continue working on legislation that supports cities’ diverse transportation needs.

  • Advocacy
  • Transportation

 

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