2012SUPPLEMENTALTRANSPORTATIONBUDGETSUMMARY

TheSenateTransportationCommittee'sproposed2012supplementaltransportationbudget adjuststhe201113transportationbudgetprovidingacombinedtotalof$9.8billionin transportationfundingforthetwoyearbudgetperiod.Forthe201113biennium,theoverall increaseinexpendituresisnearly$800million,dueprimarilytofullappropriationofexisting bondauthorizationfortheSR520BridgeReplacementprogram.Additionally,theproposed budgetincludesadditivefunding,conditionedontheenactmentofcertainfeebills,toaddress forecastedshortfallsinthemajorstatetransportationaccountsandtoadvanceworkoncertain highwayinvestmentsaroundthestate. CurrentLawSupplementalBudgetHighlights Forecastedtransportationrevenuesarerelativelyunchangedcomparedtolastyear'sbaseline March2011forecast.However,thereisvirtuallynoforecastedgrowthintransportation revenueoverthe10yearforecastperiod.Underspendingofapproximately$320millioninthe 200911bienniumhasboostedbeginningfundbalancesinthecurrentbudgetperiod.This coupledwithdecreasedspendingofaround$140million,attributabletolowerthanpredicted projectbidsanddecreaseddebtserviceintheunderlyingsupplementalbudget,provides fundingstabilityinthecurrent201113budgetperiod. Inadditiontoadjustingtheunderlyingbiennialbudget,theCommittee'sproposed supplementalbudgetalsodirectssignificantreformswithintheDepartmentofTransportation (DOT),toinclude: Reducingitsworkforceinadministrativeprograms(informationtechnology,planning, programmanagement,finance,andadministration)by57%attheendofthe201315 biennium.Aspartofthisreduction,theDOTisdirectedtoincreasetheratioofstaffto managers.Thisisexpectedtosave$8.4millionperbienniumbeginningin201517;and Streamliningreportingrequirementsbyeliminatingduplicativeandunusedproject reports.TheDOTmustreportquarterlyonthescope,scheduleandbudgetof completedprojects,projectsunderconstruction,andplannedprojects.Inaddition,the DOTmustreportonthecontingencyreservesforallactiveprojects.

CapitalProgramChanges

TheCommittee'sproposedbudgetincludesafewsignificantprojectchangesandmaintains previouslegislativecommitments: AswasthecasewiththeTacomaNarrowsBridgeproject,fullappropriationofthe remainingbondauthorityfortheSR520BridgeReplacementprogramisprovidedfor thecurrentlyplannedfloatingbridgeandeastsidereplacementprojects.Full

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appropriationauthorityallowstheDOTandtheTreasurer'sofficetobettermanage bondissuancesandneededcashflow,therebyallowingaccesstomorefavorable financingtermsthroughthefederalTransportationInfrastructureFinanceand InnovationAct(TIFIA)program.Thislowerborrowingrateincombinationwithfederal grantfundsallowsanadditional$202milliontobeallocatedforconstructionofanew bridgeoverPortageBayontheWestsideconnectionoftheSR520floatingbridge.The additionalfundingbringsthefundedprojecttotalto$2.6billion. MatchesOregonscommitmentof$85.2millionforpreliminaryengineeringonthe ColumbiaRiverCrossing.However,theDOTisdirectedtospendfundsonlywhen thereis5%paritybetweenthetotalvalueofthefundingexpendedbetweenthetwo states. $15millioninfederalTIGERgrantfundswillallownewworkintheJointBaseLewis McChordarea,ontheInterstate5/SR510toSR512MobilityImprovementproject. PopulationandcongestiongrowthintheJointBaseregionhasbeendramaticinrecent years.TheperformanceofI5throughthisareawillbeimprovedthroughtheuseof intelligenttransportationsystemtechnologies,hardshoulderrunningtechniques,and otherimprovements. Maintainsthescope,schedule,andbudgetofinvestmentsontheSR9Corridor betweenLakeStevensandArlington. Provides$15millionforatrafficmanagementcenterinSeattletosupportsafety systemsrequiredfortheSR99DeepBoreTunneloperations. PrioritytoimprovingSnoqualmiePasswiththemajorityofconstruction,includingthe wildlifecrossing,anticipatedtobecompletedduringthe201517biennium.

$40millioniscommittedforpreliminarydesignandrightofwayacquisitiontoreplace theI405intersectionwithSR167. $3.8millionisprovidedforcompletionofthewaterlinehookupattheWashington StatePatrolsacademyinShelton.Thisisthefinalphaseofamultiyearprojectthat willprovidetheagencywithpotablewaterandallowthemtodecommissionthe limitedcapacitywellthattheyarecurrentlyusing. $641,000isprovidedforsafety,security,andpublicoutreachactivitiesregardingthe useofliquidnaturalgaspoweredvesselsintheWashingtonstateferryfleet. Approvesthreenewfreightrailprojectsforlowinterestloansfromthestatefreight railinvestmentbankprogram(twoinTacomaandoneatthePortofLongview.)
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 AddsanewpreservationprojectforthestateownedPalouseRiver&CouleeCity (PCC)raillinethatwillfundpreservationthroughrevenuegeneratedfromPCCleases andtheGrainTrainProgram. OperatingProgramChanges

TheCommittee'sproposedbudgetdecreasestransportationoperatingprogramsoverallby$18 million,withmostsavingscomingfromreduceddebtserviceandsavingsingeneralgovernment costs.

TheCommittee'sproposedbudgetincludesthefollowingnotablepolicyincreases: $2.9millioninsavingsfromferryfuelhedgingisappliedtowardanyfutureincreasesin fuelcosts.Thispolicyreducesthelikelihoodofafuelsurchargebeingaddedtoferry faresduringthecurrentbiennium. $2.1millionforfuelcostincreasesexperiencedbytheDOTandtheWashingtonState Patrol(WSP). $2.7milliontocontinuetheTargetZeroteamenforcementinKing,Pierceand Snohomishcounties.Thisprogramtargetsfulltime,highvisibility,DUIenforcement teamsinareasandtimesofthedayandnightwheredetailedanalysishasshown impaireddrivingrelatedcrashesaremostlikelytooccur. $820,000offederalandstatefundsareprovidedtoimplementEngrossedSubstitute SenateBill6150,whichincludesafacialrecognitionmatchingsystemtohelpthestate combatidentityfraud.TheDepartmentofLicensing(DOL)isdirectedtoprovide certaininformationtothepublicaboutthefacialrecognitionsystemandreportback totheGovernorandtheLegislatureonthenumberoflicensefraudinvestigations initiatedbyDOLbasedonresultsfromthesystem. $2.5millioninvestmentinthefirstphaseofanupdatedinformationtechnologysystem fortheDOL. $963,000toimplementthenewlimousineregulationprogramestablishedbychapter 374,Lawsof2011.
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NewRevenueandExpenditureSummary Futuretransportationrevenuesareexpectedtobeflatordeclining.AtriskareLegislative commitmentstopaydebtserviceonthebondsissuedtopayforprojectsauthorizedin2003 and2005,currentlevelsofferryservice,maintenanceandpreservationofthehighwaysystem, fundsusedtosupporttheWSPseffortstokeepourroadwaysfunctioningsafely,aswellas commitmentstononhighwaymodesandpublictransportationagenciesthroughoutthestate.

Toaddresstheseupcomingshortfalls,threenewrevenuefeebillsareproposedfor transportationpurposes:EngrossedSubstituteSenateBill6150(drivers'licensetechnologies andfees),EngrossedSubstituteSenateBill6455(vehicleanddealerfees),andSecond SubstituteSenateBill5251(electricvehiclefee).Atfullbiennialimplementation,thefee increasesareexpectedtoprovideanestimated$80millionannuallytosupportcontinued operationofthestate'stransportationnetwork. Forthecurrentbiennium,thenewrevenueisallocatedasfollows: $130milliontofundasecond144carcapacityvessel. Withthisfunding,shipyards couldcommenceworkinDecember2012withanexpectedinservicestartinJanuary 2015. $9millionforrestorationoftheWSPsautotheftprogram,toprovideadditionalfunding forcompliancewiththeFederalCommunicationsCommission's"narrowbanding" requirementsrelatedtoupgradingradiosystems,andforgeneralagencyoperations. $6millionisprovidedtotheDOTtoreducethehighwaymaintenancebacklogandto meeturgentpreservationneedsonthestate'sroadways. $3.5milliontosupporttransitservice.Thefundsareavailabletoallpublictransit agenciesinWashingtonanddistributedbasedoncurrentservicehours,servicemiles andpassengertripsprovided. $6millionforthepurchaseoffuelforferryoperations. $3millionfortheTransportationImprovementBoardtomeeturgentpreservationand stormwaterneedsatthelocallevel. $3millionfortheCountyRoadAdministrationBoardforurgentpreservationneedson countyroads. $2millionforadditionalSafeRoutestoSchoolsprojects.
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 $1millionforpartnershipprojectsmanagedbytheFreightMobilityandStrategic InvestmentBoard. Inaddition,justover$27millioninnewfundingwillbemadeavailableoverthenext threeyearstoadvancedesign,preliminaryengineering,orrightofwayacquisitionfor thefollowingstatehighwayprojects:

o o o o o o o o o o o $1millionfortheRedMountaininterchangeproject; $2.5millionfortheI5FederalWaytrianglevicinityimprovements; $5millionfortheJointBaseLewisMcChordCorridor; $4.5millionforthe124thStreetand148thinterchangesonSR520; $5millionforSR509DesMoinestoSeaTaccorridor; $650thousandforSR9SnohomishRiverBridgewideningproject; $5millionfortheNorthSpokaneCorridor; $2millionfortheSharpesCornerintersectionproject; $850thousandfortheI82UnionGapproject; $500thousandfortheSR3/304interchangeproject;and $200thousandfortheSR28EastWenatcheecorridorimprovements.