Brief Description: Modifying transportation accounts and revenue distributions.

Sponsors: Senate Committee on Transportation (originally sponsored by Senator Haugen).

Hearing Date: 2/21/06

Staff: Jerry Long (786-7306).

Background:

The 16-year transportation financial plan enacted by the Legislature in 2005 relies on numerous, ongoing budgetary transfers to support planned expenditures. The 2005 transportation revenue bill (ESSB 6103) authorized the State Auditor to conduct performance audits for transportation-related agencies and appropriated $4 million for this purpose. However, on November 8, 2005, voters approved Initiative 900 (I-900) requiring the State Auditor to conduct performance audits of state and local governments, including "state and local transportation governmental entities and each of their agencies, accounts and programs." I-900 dedicates a percentage of the state sales and use tax for this purpose. ESSB 6103 also included language stating that if a regional transportation funding plan has not been adopted by 2007, the Legislature intends to reprioritize allocation of funding for projects identified in the 2005 financial plan.

Summary of Bill:

Planned, future transfers in support of the 2005 financial plan are codified as statutory distributions. Two funds are also created in support of the financial plan including the Freight Mobility Multimodal Account and the Regional Mobility Grant Program Account. Both accounts are subject to appropriation and retain their own interest.

The $4 million appropriation authorized in ESSB 6103 for the State Auditor to conduct performance audits of transportation-related agencies is reduced to $2 million. Language concerning legislative intent to reprioritize the state transportation financial plan if a regional transportation funding plan is not adopted by 2007 is also repealed.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed, except for section 10 which expires on July 1 2006, and section 11 takes effect on July 1 2006, relating to account earnings. Section 1 applies to license fees due on or after July 1 2006.