Title: An act relating to state transportation bond payment revenue.

Brief Description: Creating a transportation debt limit.

Sponsors: Senators Haugen, Swecker, Jacobsen, Benton and Rockefeller.

Brief History:

Committee Activity: Transportation: 1/25/05, 1/31/05 [DP].

Passed Senate: 3/2/05, 48-0.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass.Signed by Senators Haugen, Chair; Jacobsen, Vice Chair; Poulsen, Vice Chair; Benson, Eide, Esser, Kastama, Mulliken, Oke, Spanel, Swecker and Weinstein.

Staff: David Ward (786-7341)

Background: The state Constitution limits the amount of expenditures that the state may
make for debt service payments on debt to no more than 9 percent of general state revenues.
Specifically exempt from this debt limit calculation are bonds whose revenue is pledged from
license fees on motor vehicles and excise taxes collected on motor vehicle fuel. The license
fees on motor vehicles and the excise taxes collected on motor vehicle fuel are also the
revenues that are governed by the 18th Amendment of the Constitution requiring them to be
used for "highway purposes" only.

Over time, the state has issued bonds backed by the fuel tax and license fees on motor vehicles
to be used for highway and ferry improvements. These bonds require ongoing principal and
interest payments from the fuel tax and license fees on motor vehicles. Revenues from these
sources are also used for other highway related items such as the State Patrol, Department of
Transportation operating and maintenance costs, the Department of Licensing's Vehicle
Services Division and others.

Summary of Bill: The aggregate principal and interest payments on bonds which are backed
by state transportation bond payment revenue may not exceed 22 percent of total state
transportation bond payment revenues.

State transportation bond payment revenues are defined as the portion of the fuel tax that is
distributed to the state and all state license fees on motor vehicles.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: None.   

Testimony Against: None.

Who Testified: No one.