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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Saturday, July 19, 2008 Drop in driving cuts into state's funds for road projects Gasoline sales and ferry ridership are down, putting fewer dollars into programs that pay for road work and safety programs. By Jerry Cornfield, Herald Writer OLYMPIA -- As fuel prices climb and people change their travel habits state legislators are being left in a bind over how to fund road projects and safety programs. Gasoline sales, car purchases, ferry trips and airline flights -- all of which generate income for state transportation in one way or another -- have declined in recent months. As a result, the state is collecting less revenue from taxes, fees and fares and giving lawmakers tens of millions of dollars less to spend next session when they write the 2009-11 transportation budget. "It's going to be a challenge, no question about it," said state Sen. Mary Margaret Haugen, D-Camano Island, who helps author the budgets as chairwoman of the Senate Transportation Committee. Four times a year, the state Department of Transportation issues a forecast of how much money is anticipated for future transportation budgets. Its June report predicted the next budget will have $137 million less available than was shown in the February forecast. The next report is due in September. Details have been discussed at meetings this month of state lawmakers, budget writers for the governor and the state Transportation Commission. The latest report says the state expects to take in $95 million less in gas taxes, $16 million less from licenses and fees and $9 million less in ferry fares during the next budget period. A chunk of those evaporating future dollars was counted on to pay for some of the 391 road projects promised when the state increased gas taxes in 2003 and 2005. As of June 30, 148 of those were finished, transportation officials said. Haugen said funding is secured for projects already started. Those not yet begun are going to be the focus of conversation next year because not only are revenues dropping but construction costs are soaring. Huge leaps in material and labor costs are eating up the pot of dollars much faster than legislators anticipated in 2003 and 2005. "As projects become more expensive there is not enough money to pay for all of them and we need to deal with that," she said. "We will have to do some re-prioritizing. I tell people you ought to be real happy your project is funded." Not all the gas tax money is earmarked for new construction. A chunk winds up funding the Washington State Patrol, Safe Routes to School program and traffic safety efforts. The department's view of where to pare and what to spare will be better known in late August when it forwards its proposed budget to Gov. Chris Gregoire. "It's too early to tell the exact impact on projects and programs," said Lloyd Brown, communications director of the state Department of Transportation. He said cuts in spending and personnel were made earlier this year in response to the downward trend of revenues. "We're managing our way through this process," he said. Reporter Jerry Cornfield: 360-352-8623 or jcornfield@heraldnet.com.

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