HOUSE BILL REPORT

                2E2SHB 2080

                    As Passed Legislature

Title:  An act relating to transportation funding and appropriations.

Brief Description:  Providing transportation funding and appropriations.

Sponsors:  By House Committee on Transportation (originally sponsored by Representatives K. Schmidt, Hankins, Benton, Elliot, Skinner, Buck, McMahan, Robertson, Johnson, D. Schmidt, Chandler, Mitchell, Koster, Backlund, Cairnes, Horn, Blanton and Stevens).

Brief History:

  Committee Activity:

Transportation:  3/16/95, 3/17/95 [DPS].

Floor Activity:

Passed House:  4/11/95, 55-39.

     Reconsideration:  55-39.

     Passed Senate:  41-7.

     House Refused to Concur.

  Second Special Session

  Floor Activity:

     Passed House:  60-34.

     Senate Amended:  44-4.

     House Concurred:  60-34.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 18 members:  Representatives K. Schmidt, Chairman; Benton, Vice Chairman; Mitchell, Vice Chairman; Skinner, Vice Chairman; Backlund; Blanton; Buck; Cairnes; Chandler; Elliot; Hankins; Horn; Johnson; Koster; McMahan; Robertson; D. Schmidt and Scott.

Minority Report:  Do not pass.  Signed by 7 members:  Representatives R. Fisher, Ranking Minority Member; Hatfield, Assistant Ranking Minority Member; Chopp; Ogden; Patterson; Romero and Tokuda.

Staff:  Eugene Schlatter (786-7316).

Background:  The state motor vehicle fuel tax (gas tax) rate is 23 cents per gallon.  The tax does not rise with the price of gasoline; the tax can only be increased by the Legislature.  The Legislature last passed a gas tax increase during the 1990 session, when the tax was raised from 18 cents to 22 cents beginning April 1, 1990, and 23 cents beginning April 1, 1991.

Each 1-cent increase in the gas tax is estimated to raise $57.9 million per biennium. 

The motor vehicle registration fee, which is paid when drivers obtain their car tabs, is currently $27.75 for first-time registrants and $23.75 for each annual renewal.  Heavy trucks pay a registration fee ("combined license fee") according to the truck's gross weight.  Like the gas tax, these fees do not rise with inflation and are not indexed to a vehicle's value; they can only be raised by the Legislature.  The Legislature last raised the fees in 1987 by 1 percent ($4.75).

Each $1 increase in the passenger-type vehicle registration fee is estimated to raise $7.3 million per biennium.  Each 1 percent increase in the combined license fee raises $2.3 million per biennium.

Revenues derived from registration fees and gas taxes can only be used for highway purposes under Amendment 18 of the state constitution.  These revenues are deposited in special funds (motor vehicle fund, ferry operations account and Washington State Patrol highway account) to segregate them from other non-18th Amendment funds.

Moneys restricted under the 18th Amendment are excluded by definition from Initiative 601's voter approval requirements for general fund tax increases. 

The Legislature must make biennial appropriations for each agency's operating budget and capital improvements.  The transportation budget provides funding for the agencies and programs supported by the existing and new transportation revenues.

Summary of Bill:

DEPARTMENT OF TRANSPORTATION

!Shifts nearly $60 million from DOT operations and administration to capital projects through cost efficiencies and program reductions.

!Funds over 30 HOV projects for $249 million, including $47 million for two delayed HOV projects that will be funded pending a favorable settlement of the gasohol lawsuit or public approval of the repeal of the gasohol exemption.

!Begins construction on $95 million of urban/rural capacity improvement projects committed to in the 1990 transportation revenue package.  These projects would not have been constructed under the Transportation Commission's "no new revenue" proposal.

!Provides $34.5 million for intercity rail passenger facilities and services including $12 million for lease-purchase of two Talgo-type train sets, provided the train sets are assembled in Washington State.  Supports the new service from Seattle to Vancouver, B.C., including service to Everett, Mt. Vernon and Bellingham, and continues state-supported service from Seattle to Portland.

!Makes available $5 million in Federal Surface Transportation Program enhancement funds to preserve freight rail corridors for future freight rail service and to begin renovation of the King Street Station in Seattle.

!Increases funding from $1.5 million in 1993-95 to $2.5 million for the Rural Mobility Program to assist those areas of the state having little or no public transportation.

!Funds the acquisition of a new prototype passenger-only ferry for the Washington State Ferry System using revenue from a newly created Passenger Ferry Account.

!Provides $289 million to fund pavement preservation on state highways.  This amount represents an increase of $36 million over the amount requested by DOT, but is still about $20 million less than projected needs.

!Appropriates an additional $6.5 million for construction of all-weather roads (for a new total of $20 million) in order to reduce road closures and weight restrictions on critical sections of our state's highways.

!Provides first-year funding for the public-private initiatives program.

!Makes available $5 million for infrastructure associated with the new horse racetrack in Western Washington.

!Provides $2.2 million for removal of fish barriers on state highways, an increase of $400,000 over the agency request.

!Appropriates $2.7 million to address congestion at the Blaine border crossing,  contingent upon the project being designated  a federal demonstration project.

!Reduces DOT staff by nearly 600 compared to the 1993-95 authorized level.  (Note:  For all agencies in budget, FTEs are reduced by 675).

!Funds DOT construction projects without the use of any new bonds.

WASHINGTON STATE PATROL AND DEPARTMENT OF LICENSING

!Continues to use transportation funds to pay for $17 million of General Fund activities assumed in 1993 for Washington State Patrol and Department of Licensing.  This cost is mitigated by the return of the $3.80 of the $14 driver license fee that has been deposited into the general fund since the early 1970s.  This shift will free up $7.8 million of highway moneys that had been diverted to DOL to cover budget shortfalls.

!Adds funding to prevent closure of four Driver Licensing Examination Offices throughout the state.

!Continues development of the Licensing Application Migration Project (LAMP) by providing $15.2 million for fiscal year 1996 costs.

!Establishes trooper level of 735 in State Patrol field force during the 1995-97 biennium, an increase of 35 over the 1993-95 level.

!Increases salaries by 9% during the biennium for commissioned, commercial vehicle enforcement, and communications officers to prevent attrition and achieve parity with officers in other law enforcement agencies..

!Provides funding to WSP for an increased effort to identify and collect revenues associated with vehicle license fraud.

!Continues collocation of DOL, WSP, DOT facilities to provide "one-stop" transportation services.

OTHER AGENCIES

!Provides a reappropriation of $700,000 and a new appropriation of $1.8 million to the Regional Transit Authority (RTA) to continue development of a revised regional plan to present to voters in Spring 1996.

!Appropriates $750,000 for the development of an alternative regional mobility plan, plus $250,000 to integrate this plan with the plan developed by the RTA.

!If no positive vote by May 31, 1996, the RTA is sunsetted and high capacity transportation taxing authority would revert to transit agencies in King, Pierce, and Snohomish counties.

!Merges the Office of Marine Safety (OMS) into the Department of Ecology as of January 1, 1996.  OMS administers programs to prevent oil spills in Washington State waters.

!Increases funding for Traffic Safety Commission DWI task forces from $300,000 to $900,000 and  funds new programs targeted at reducing the incidence of drug -related accidents.

!Provides funding to the Department of Community, Trade and Economic Development to retain staff at seven gateway visitor information centers.

TOTAL TRANSPORTATION BUDGET

1993-95 Estimated Expenditures: $3.395 billion

1995-97 Appropriations:      $3.130 billion

Appropriation:  $1.658 billion.

Fiscal Note:  Not requested.

Effective Date of Bill:  The bill takes effect immediately.

Testimony For:  Additional funding is provided for WSP salary increases and additional troopers and DOT construction projects.

Testimony Against:  (To the Substitute House Bill passed out of committee)  Reduced appropriation authority will hurt the state tourism program.  State Parks would like capital expenditures restored.  Cities and counties would prefer normal distribution of fuel tax revenues.

Testified:  (To the Substitute House Bill passed out of committee )  Russ Cahill, Washington State Parks & Recreation Commission (concerns); Robin Pollard, State Tourism Program (con); Sid Morrison, Department of Transportation (pro); Paul W. Locke, citizen (con); Rick Jensen, Washington State Patrol Troopers Association (pro); Chief Roger Bruett, Washington State Patrol (pro); and Jay Weber, Washington State Association of Counties (concerns).