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Funding Shortfalls Raise Concerns in Washington State

Washington State's transportation budget faces a $4 billion shortfall over six years due to declining gas taxes and increased costs. Projects, including Interstate 5 improvements, may be delayed. Senator Liias suggests recalibrating the gas tax or implementing road-usage charges to generate revenue. Federal funding challenges and potential tariffs add to concerns, emphasizing the need to invest in aging infrastructure and accelerate project delivery through partnerships with private companies.

Mon March 31, 2025 - West Edition #7
theolympian.com


Washington state's transportation budget faces a multi-billion-dollar shortfall in the coming years, according to theolympian.com, which could delay projects.

State Sen. Marko Liias, who chairs the upper chamber's transportation committee, estimated the transportation deficit at $4 billion over the next six years.

Liias told theolympian.-com that the problem stems from declining gas taxes. Meantime, costs have increased faster than inflation, in part because of the pandemic and supply chain difficulties.

"The cost of building or repairing a mile of roadway has gone up much faster than the cost of groceries and other things we've seen," Liias said. "Because of the way we fund transportation, revenue is declining."

More fuel-efficient and electric cars have contributed to the gas tax revenue, along with employees telecommuting more frequently, theolympian.com reported.

Liias said the shortfall on the $15 billion budget over the next two years will reach $1 billion, according to theolympian.com.

"If we want to close the gap in the budget over six years, it may mean pausing a project," Liias said.

Liias said projects that could be disrupted include Interstate 5 improvements at Joint Base Lewis-McChord. In Tacoma, the Puget Sound Gateway connecting the Port of Tacoma to Highway 167 could be paused, as could ongoing work in Fife, at Snoqualmie Pass and the North Spokane Corridor.

Liias told theolympian.com that recalibrating the gas tax to account for inflation could be a solution.

"It could be different funding tools; [House Transportation] Chair [Jake] Fey has proposed a road-usage charge," he said. "It also could be other fees, or it could be tolls. There's a number of things we could use that would help folks, as they use the system, contribute to its upkeep."

But Liias wants to see Washington continue with the use-more, pay-more model, where those who use the roads more pay more, according to theolympian.com.

"I think that basic fairness is a principle that we want to continue to rely on," he said.

Washington's transportation leaders also worry about federal government challenges.

Liias told theolympian.-com that federal funding might be at risk, citing the I-5 bridge replacement across the Columbia River between Portland and Vancouver. About $2 billion in federal grants are earmarked for the project.

In addition, proposed tariffs by President Trump could add to costs. Liias said that much of Washington's transportation infrastructure depends on outside materials. Tariffs on goods from China, Canada and Mexico could prove problematic.

Another factor, Liias told theolympian.com is that the state must invest in its existing, aging infrastructure. He said the state now funds less than half of its preservation needs.

Liias touted a bill that recently passed the state Senate that would allow for partnerships with private companies, thus hastening transportation project delivery. The idea's been used in other states.

"In transportation, time is money," Liias told theolympian.com. "The faster we build projects, the lower we're exposed to inflation and those cost uncertainties."




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