SENATE BILL REPORT

SB 5892

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: An RTA is authorized to use its tax revenues to plan, construct, and operate high-capacity transportation, such as express bus service and light rail. There is currently one RTA—Sound Transit—which operates light rail, commuter rail, and express bus service in Puget Sound. Sound Transit currently imposes the following voter-approved taxes:

1.4 percent sales and use tax;
1.1 percent Motor Vehicle Exercise Tax (MVET);
an annual $0.25 per $1,000 of assessed value property tax; and
a rental car sales tax of 0.8 percent.

These tax rates include tax increases to fund a transit construction and operation program known as "ST3" approved by voters in November 2016 of:

an additional 0.5 percent sales and use tax effective April 1, 2017;

an additional 0.8 percent MVET beginning March 1, 2017; and

a property tax of $0.25 per $1,000 of assessed valuation beginning January 1, 2017.

"ST3" includes planned construction of 62 additional miles of link light rail, including 37 new stations, bus rapid transit on I-405, SR 518, SR 522 and NE 145th, rail Sounder service from Lakewood to Dupont, and expansion of express bus service throughout the district. Significant construction plan amendments may be approved by the board of an RTA via a two-thirds favorable vote.

Summary of Bill: Legislative intent is stated to be to allow voters to reaffirm or withdraw their support for an RTA to continue collecting revenue and constructing capital projects if costs exceed the original budget by more than 20 percent.

An RTA must provide an engineers estimate for all capital projects in a voter approved capital program on its website or another publically accessible location. If two years after beginning a voter approved capital program the overall capital program budget is more than 20 percent over the initial estimate, an RTA must ask voters to reauthorize any taxes approved after January 1, 2015.

Staff Summary of Public Testimony: PRO: Washington Public Power Supply System started building nuclear power plants and they did not finish the program and the public took a big hit. Recently the Sound Transit I-90 project increased more than 46 percent over the original budget. It could happen that Sound Transit will use up all of their contingencies at the beginning of the program. This bill would require Sound Transit to go back to the voters if their program is 20 percent over budget. Sound Transit needs to be fair and honest with the taxpayers. There needs to be some kind of voter approval.

CON: Voters approved Sound Transit and most recently ST3. Voters could choose to not elect Sound Transit representatives if there are problems with projects. Do not politicize these projects. Projects often experience project increases or decreases and these can be accommodated. Let Sound Transit deliver on the expectations of the voters. Sound Transit voters wanted projects as soon as possible, this bill would jeopardize the timeline for projects, and create uncertainty in project construction. This would cripple the project construction process. Sound Transit would reduce energy consumption, promote health and reduce road traffic accidents, lower household expenses for transportation and housing. Companies rely on Sound transit work. Projects could end up half completed, which is wasteful.

Persons Testifying: PRO: Senator Phil Fortunato, Prime Sponsor. CON: Vlad Gutman-Britten, Climate Solutions; Ricardo Gotla, Transportation Choices Coalition; Marilyn Strickland, Sound Transit/Mayor, City of Tacoma; Claudia Balducci, Sound Transit/King County Councilmember; Monty Anderson, King County Building and Construction Trades Council; Ellicott Dandy, OneAmerica; Bryce Yadon, Futurewise; Dale Bright, Pol. Dir. Laborers Local 242; Jeremy Une, COPe Chair Amalgamated Transit Union local 587; Tim Gould, Sierra Club; Osama Quotah, AIA Washington Council.