Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - September 22, 2000
Contact:  Governor's Communications Office, 360-902-4136

Locke authorizes tax-exempt bonds to keep new Narrows bridge tolls low

OLYMPIA - To ensure the lowest possible tolls on the proposed new Tacoma Narrows Bridge, Gov. Gary Locke today authorized the use of tax exempt bonds as part of the bridge financing package.

The governor's action means the state may use tax-exempt bonds authorized by the federal Tax Equity and Fiscal Responsibility Act (TEFRA).

"TEFRA bonds will drive down the total cost for the new bridge and that means lower tolls," Locke said. The governor approved the TEFRA funding after reviewing a report summarizing public comments at a June 29 TEFRA bond hearing held in Gig Harbor.

"My top priority has been to ensure that the tolls will be as low as possible, and TEFRA bonds are absolutely critical to achieving that goal," he said.

"As I have stated repeatedly, authorizing the use of TEFRA bonds does not determine the project's fate, just its financing costs. Those financing costs are tied directly to the size of the tolls."

Locke emphasized that the use of another federal law, the Transportation Infrastructure Finance Innovation Act (TIFIA), is also a crucial element of the funding package for the proposed bridge. The U.S. Department of Transportation is about to decide if it will approve TIFIA funding for the bridge project.

Because TIFIA and TEFRA are the two major toll-cutting elements of the bridge finance plan, Locke said authorizing the TEFRA funding at this time was crucial given the USDOT's consideration of the TIFIA funding request. Congressman Norm Dicks is playing a strong leadership role in trying to secure TIFIA funding for the bridge.

With the funding support of the two federal programs, Locke said the initial round-trip toll for crossing the bridge is estimated at $3 through 2008, with a maximum toll of $5 (round-trip) in 2020. But, without TEFRA and TIFIA funding, the round-trip tolls could rise as high as $8 by 2017.

"While many citizens throughout the region support this bridge project, it is clear that some do not. Gig Harbor-area residents particularly are concerned about bridge project costs and the consequent tolls," Locke said.

Representative Patricia Lantz (26th Leg. District) was one of the first to urge for the use of tax exempt financing to secure the lower tolls.

"I am doing what I can to keep costs down. In addition to authorizing the use of TEFRA tax-exempt bonds and supporting the state's TIFIA application, I will continue to seek out options that will ensure the bridge tolls and other costs will be as low as possible," the Governor added.

The 50-year-old Tacoma Narrows bridge currently experiences a daily traffic volume of 150% of its design capacity.

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