Senate and House Transportation budgets ain’t half bad, acknowledge city priorities

Both the House and Senate proposed transportation budgets were introduced last week among the general flurry of budget releases. Facing a mixed transportation revenue forecast and a slight economic slowdown since last year’s projections, both bills reflect reduced collections in most of the major transportation revenue sources. They each adjust planned expenditures and ongoing projects to account for lower funding levels and construction delays, but they differ somewhat in assumed revenue amounts and project delivery timelines.

The 2023-25 biennium will be the first full biennium of the Move Ahead Washington funding package implementation, including the first auctions of carbon emission allowances under the Climate Commitment Act (CCA). The House proposes a $13.6 billion budget; the Senate’s proposal comes in a little lower at $12.9 billion.

On the Senate side, operating expenditures and grant programs are “sized to allow for steady ongoing amounts through the 16-year investment plan.” Other adjustments are made to programs to match cash flow from the CCA auctions and manage budget and delivery constraints over the next six years. The House prioritizes completion of projects begun under the Connecting Washington Act and other past packages. It also allocates $923 million in auction proceeds for the biennium, as compared to the Senate’s $758 million appropriation of those funds.

Read the House budget summary and Senate budget summary for more information. Check out the House 2023-25 proposal and 2021-23 supplemental budget, HB 1125. The Senate 2023-25 budget and 2021-23 supplemental is SB 5126.

Cities stand to benefit in many ways from both proposals. They each include the following:

• $287 million for the Transportation Improvement Board, including $9 million for city preservation and maintenance projects.
• $70.8 million for Safe Routes to Schools Grants.
• $72.2 million for Bicycle and Pedestrian Safety Programs and Grants.
• $25 million for federal fund exchange pilot program of Transportation Block Grant population funding and state funds.
• $250,000 for a study of a statewide retail delivery fee on orders of taxable retail items delivered by motor vehicles within the state.
  • Funded by cities’ portion of state gas tax revenues and proposed by AWC staff.

The budgets differ in a few key areas of importance to cities.

Fish barrier removal

While both chambers appropriate $1 billion for fish barrier removal, the Senate takes a changed approach this year.

• The House bill retains existing proviso language directing the state to coordinate with the Fish Barrier Removal Board on a watershed approach to include local culverts.
• The Senate bill, however, removes that proviso language and adds language directing the state Department of Transportation (WSDOT) to explore innovative funding partnerships to leverage state and local funds to match opportunities for federal funding under the BIL. AWC requests that the original proviso be maintained.

Freight mobility and truck parking

In funding the Freight Mobility Strategic Investment Board (FMSIB), the House and Senate appropriate similar funding levels ($45 million and $44 million, respectively) and both budgets fully fund the Board’s proposed project list.

• However, $12 million of the Senate allocation is for the Board to implement the Joint Transportation Committee’s (JTC) 2021 Truck Parking Action Plan.
• In contrast, the House does not include this proviso, instead leaving WSDOT to lead truck parking solutions.

The House plan appropriates $800,000 for WSDOT to coordinate with local governments and private entities to recommend new truck parking sites. It also provides $1.2 million for WSDOT to evaluate safety rest areas along I-5 and I-90 for potential truck parking expansion opportunities. As for FMSIB, the House allocation includes $740,000 for the Board’s new duties and a  study on best practices for preventing or mitigating the impacts of freight projects on overburdened communities, pending the passage of HB 1084.

Alternative fuel and electric vehicle infrastructure

Both chambers make large investments into clean alternative fuel infrastructure, though much of the Senate dollars for electric vehicle (EV), decarbonization and alternative energy is funded in the operating budget. The House transportation budget includes $25 million for the National Electric Vehicle Infrastructure Program, which is the state’s portion of federal formula funds. Both transportation budgets appropriate between $2 and $7 million for an interesting new e-bike rebate program and a separate e-bike lending library and ownership program offering competitive grants to locals, including cities.

State-local partnerships

The House introduces a new highway maintenance partnership initiative in its budget with direct impacts to cities.

When WSDOT is the lead on a project scheduled to be delivered within the 2023-25 biennium, but WSDOT lacks the capacity to complete the project in time and the local jurisdiction associated with the project has the capacity to complete the work, WSDOT must coordinate with that jurisdiction “to determine if a potential local partner is ready, willing, and able to… [complete] the project.” The proviso directs WSDOT to identify a list of such projects across the state by Nov. 1, 2023.

The bill also directs the JTC to convene a WSDOT local partnership work group to “create a procedure whereby [WSDOT] can partner with a local jurisdiction to perform preservation and maintenance and construct projects on state highways.” The work group must consist of at least three WSDOT representatives and at least four city or county transportation project managers. The group must make recommendations for how WSDOT can better partner with local jurisdictions to complete roadway construction projects when funding is available and WSDOT cannot manage a project but the local government can.

Noting that the JTC study focuses on preservation, maintenance, and construction on state highways, AWC has provided a list of topics to the House Transportation Chair that should be included for consideration, i.e., differing standards between state and local agencies, the public procurement process, financing and reimbursement of projects, and liability.

Route jurisdiction study

The Senate plan appropriates $500,000 for the WA State Transportation Commission “to conduct a route jurisdiction study aimed at assessing the current state highway inventory and local roadway designations to determine if changes are needed in jurisdictional assignment between the state, county, and city road systems.” The current criteria used to define the state highway system will be reviewed within the study to determine if updates to the criteria are needed. The study findings and recommendations are due to the Legislature by July 1, 2025.

For a more comprehensive picture of the two budgets and how they stack up against one another, read AWC’s budget matrix and Budget Hot Sheet.