B Y THE YEAR 2000, Washington State's population is expected to grow to nearly six million people, representing the fastest rate of growth since World War II. This dramatic population increase will put significant additional pressure on the state's already burdened transportation system.

In addition, Washington is experiencing strong economic growth. Recent tax incentives have helped bring major high-technology businesses to the Northwest, promising tens of thousands of new jobs. This trend requires a modern transportation system, capable of meeting increased demands for transporting products to market and employees to work.

To respond to these pressures and help ensure that Washington's transportation system can sustain the state's economic growth and quality of life, Governor Lowry is proposing a $3,107.2 million budget for the Department of Transportation (DOT) in the 1997-99 Biennium. The Governor's budget makes the necessary investments to meet the state's transportation needs.

The budget proposal also includes a plan for financing these investments. As Washington State growth has outpaced the transportation revenue sources that finance today's transportation budget, this plan puts forth a new revenue approach that responds to critical needs and provides more flexibility in directing resources toward a variety of mobility demands.

In the past, most of the state's ground transportation problems have been solved by adding a lane or building another highway. Today, that solution is simply not enough. The state's crowded metropolitan areas will not sustain this approach, nor will additional lanes alone be sufficient to handle the vast number of cars and trucks that would use them. Instead, Washington must do what other states and countries have already done build multi-modal alternative transportation solutions that will enable people and goods to move more efficiently and reliably. Puget Sound-area citizens recognized that need in November 1996, when they voted to support the state's Regional Transportation Authority (RTA).

The policy debate about the best mix of transportation alternatives will no doubt continue, and technology will offer new solutions in the future - yet Washington faces a crossroads today. Without a commitment to invest in a broad-based transportation system that meets current and future needs, the state's economy could fall victim to its own growth.

The Governor's budget proposal will help expand mobility choices by providing new support to public transit, passenger rail, and some private, non-profit services that serve people with disabilities and special transportation needs.

High Occupancy Vehicle (HOV) lanes in the central Puget Sound region are a great success story, but the system must be finished quickly. Additional HOV lanes will enable the current freeway system to substantially increase capacity and, through projects coordinated with RTA, will allow buses and carpools to move quickly and safely. The budget provides revenues sufficient to support bond financing to fund completion of the core HOV system within 12 years.

Major new investments to promote transportation alternatives include:

• HOV Lanes: $1.7 billion in new bond authorization is provided to complete the core HOV lane system. New construction projects costing $354.4 million are proposed for the 1997-99 Biennium, with expenditures over 12 years totaling $1.7 billion.
• Commuter and Light Rail:. The budget plan provides $50 million each biennium for allocation on a competitive basis by the Department of Transportation to the RTA and similar transportation systems being discussed in Clark and Spokane Counties. This funding is intended to accelerate construction of new rail improvements in congested areas of the state, and will be used to match federal dollars and speed the development of passenger and high density rail systems.
• Passenger Rail: The 1997-99 budget proposal calls for a $60 million investment in track and train improvements to reduce travel time for passenger rail service between Seattle and Portland, and to help make train travel a more competitive alternative to the automobile. Over the next six years, passenger rail investments will total more than $149 million.
• Community Network Boards Grants: New revenues are provided to promote better coordination between the transportation, social service, health, and education systems to help those left isolated by aging, poverty or disabilities. Over the next six years, $41 million will be allocated through 53 local Community Network Boards that operate under the state's Family Policy Council. The new dollars will help the boards work with transit and other local transportation authorities to develop new transportation system plans to meet these urgent needs. In future biennia, grant funds will support these newly-designed services.
• Local Transit: Local transit agencies will receive $40 million over the next six years to help support the implementation of the provisions of the Americans With Disabilities Act.
• Ferry System: Two additional Jumbo Class ferries and two passenger-only ferries will be brought into service beginning in 1997-99 to provide increased ferry service across the Puget Sound.

The budget proposal offers a plan for investment over the next six years that builds on the strengths of today's system by also funding traditional highway mobility projects. Thousands of drivers in both urban and rural Washington rely on the state's highway system every day, and important projects must move forward quickly to offset growing congestion.

The budget reinforces the Washington State Transportation Commission's commitment to highway system preservation, operation, and safety. At the same time, it provides a balance of expenditures for projects in all areas of the state including rural and urban centers with projects both east and west of the Cascades. Completion of the core HOV lane system will directly benefit residents of the Puget Sound area while also improving statewide access to the region's ports. Rural areas of the state will benefit from freight rail investments and construction projects aimed at repairing all-weather roads and rebuild bridges that do not meet height and weight limits. Also funded are rural mobility, bicycle, and pedestrian improvements and other projects to support tourism.

The budget targets investments in freight mobility to keep Washington competitive in the global marketplace. Through funds allocated to DOT, the state will be able to partner with other transportation providers to address freight mobility, and rural public transportation, and local development mitigation.

Highway-related elements of the Governor's proposal include:

• Mobility: The budget proposal funds $162.5 million in new highway mobility construction projects in 1997-99, and $547.1 million over the next six years.
• HOV Lanes: Over the next six years, $949.1 million will be spent on new construction projects on the core HOV lane system as defined by the Washington State Transportation Commission. Included is a 1997-99 Biennium expenditure of $354.4 million.
• Transportation Demand Management: Highway investment needs are affected by local land use decisions and the way highways are engineered. This budget proposes the expenditure of $31 million over the next six years for transportation demand management to help control the expense and environmental damage associated with highway construction. The budget also proposes a comprehensive planning infrastructure that will minimize future highway costs through better coordination between local land use plans and state highway planning.
• Safety: The budget proposal provides $124.2 million in 1997-99 for highway safety projects. Over the next three biennia, $15.6 million is earmarked for bicycle and pedestrian projects, and $12 million is provided for expanded aviation search and rescue and airport planning programs.
• Freight Mobility: A total of $98.7 million is allocated over the next six years for a number of freight investments, including: roadway and railroad grade separations in the most congested corridors; improved rail and highway access to marine ports; removal of barriers to truck freight movement such as low bridges and freeze-thaw closures of haul roads and the purchase of rail grain cars.
• Kingdome Area Intermodal Access Project: To ease congestion around the Kingdome, $71 million is dedicated over the next six years as the state's share of construction projects that result from the partnership between DOT, five local jurisdictions, and the private sector. Known as the Kingdome Area Intermodal Access Project, the plan will provide for a number of improvements including a pedestrian bridge, transit enhancements, and a grade separation at state Route 519 and the railroad tracks. Improvements on Alaskan Way south of state Route 519 will improve local access to Colman Dock and the Port of Seattle terminals.
• Protecting the Environment: In addition to maintaining the state's ongoing commitment to protecting the environment, the budget proposes specific investments totaling more than $23 million in 1997-99, including stormwater management work and a new wetland mitigation banking program.
  

To prepare adequately for the transportation needs of the future, Washington State needs an efficient multi-modal transportation system that meets the needs of businesses and individuals and is supported by broader sources of revenues.

Historically, transportation financing has relied primarily on the gas tax, with supplementation from the Motor Vehicle Excise Tax. Today, the state-imposed gas tax rate is 23 cents per gallon ranking Washington 17th among all states in fuel tax rates.

Unfortunately, while project costs grow with inflation, the gas tax does not. In addition, the 18th Amendment to the State Constitution limits the use of gas tax proceeds to only highway-related expenditures. A more flexible funding source must be created to finance the multi-modal mix of transportation investments that are now necessary.

To meet the state's changing transportation needs, the budget proposes that the current state sales tax of 6.5 percent be extended to cover the purchase price of fuel at the gas pump. Based on an average per-gallon cost of $1.30, the proposal would increase the cost of a gallon of gas by approximately 9 cents.

In addition, the budget proposes the issuance of $1.7 billion in bonds to finance completion of the HOV core system, as well as $230 million for urban/rural mobility projects.

The proposal also authorizes counties and cities, through a local vote, to place an optional local sales tax on fuel. Any new revenues would be used to fund priority transportation projects that have been included in the regional Transportation Improvement Program plans which are approved by the Metropolitan Planning Organizations.

Where ever the electorate has already voted to impose a local option sales tax, such as for the RTA or local transit districts, these entities will receive the additional revenue from the sale of fuel in their districts. Counties and cities can vote to impose the sales tax on fuel for local transportation needs. Smaller junior taxing districts that already collect a local option sales tax for criminal justice and public facilities would receive the revenues collected from the sales tax on fuel if a county or city exercises the local option.

This revenue proposal also generates enough funds to support the expected operating costs for the Washington State Patrol over the next six years, without implementing an increase in vehicle registration fees.

The Alternative to Adequate Funding

State transportation revenues that are available under current law are not sufficient to meet the growing demands on the system. Federal funding for the state transportation program is decreasing, current bond authorization is being exhausted, and current gas tax revenues are growing at only 2 to 3 percent annually. The transportation budget that is affordable within existing revenues can only provide for funding of maintenance and preservation. Preservation of the existing transportation system is a major priority. However, a transportation budget without new revenues means:

• The highway safety program will be under-funded and will not meet long-term needs.
• No new urban/rural mobility construction projects can be started.
• The HOV core system cannot be completed in the near future.
• High-speed passenger rail can be supported only at current levels, precluding the improvements necessary to decrease travel time and improve train reliability.
• The state cannot support the Regional Transportation Authority (RTA).
• New, innovative multi-modal transportation options that are needed to address growing congestion and solve transportation system problems cannot be initiated.