Brief Description: Modifying city and town use of state fuel tax distributions.

Sponsors: Senate Committee on Transportation (originally sponsored by Senators Swecker, Haugen, Esser and Spanel).

Hearing Date: 3/21/05

Staff: Jerry Long (786-7306).

Background:

RCW 46.68.110 governs the allocation of the 10.9691% of statewide fuel tax revenues distributed to cities and towns.

Prior to distributions to cities and towns ratably on the population last determined by the Office of Financial, there are three deductions from the statewide revenues distributed to cities and towns:

• One and one-half percent for the supervision of work and expenditures of incorporated                   cities and towns on city and town streets including federal aid programs for which the                      Department of Transportation (DOT) has responsibility for;
• Thirty-three one-hundredths of one percent for DOT for highway jurisdictional studies and other studies; and,
• One percent for the City Hardship Assistance Program.

The statute mandates that 31.86% of the funds distributed to cities and towns be used for certain purposes depending on the size of the city or town. For cities and towns with a population of fifteen thousand or more, these funds can only be used for the construction, improvement, chip sealing, seal coating and repair of arterial highways and city streets. For cities and towns with a population of less than fifteen thousand, the funds can only be used for the maintenance of arterial highways and city streets.

Summary of Bill:

Removes the restrictions on the uses of funds for cities and towns regardless of size as measured by population. However, as fuel tax revenues, the funds remain restricted to highway purposes as set forth in the 18th amendment to the Washington State Constitution.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.