Coronavirus has hit Washington’s transportation budget hard. Now state is asking for help
Washington’s transportation programs are facing losses of up to $100 million a month, a 38% shortfall that the state’s transportation secretary warns will affect construction and maintenance of highways, rail, traffic control and other projects.
While the state is taking steps to cut spending, “these measures will not be enough to make up for the anticipated revenue shortfall, and we expect our Legislature will have to make additional reductions when it returns to session,” wrote Transportation Secretary Roger Millar in a letter to the Washington congressional delegation.
“Federal assistance is urgently needed in order to prevent major disruptions to our ability to operate and maintain our transportation system during this unprecedented emergency,” he said.
Millar spelled out his case in his letter.
Over the past six weeks, since the coronavirus outbreak all but shut down the state, traffic has been reduced an average of 45%, he said. Transit and ferry ridership have dropped 75%, and use of toll roads is down significantly.
The state has suspended 65 construction projects, as well as most maintenance activities, because of safety concerns related to the coronavirus outbreak.
“Given the uncertainty of the duration of the pandemic and the lag in revenue reporting there are no exact figures right now, but current traffic and ridership numbers suggest that the state could expect a loss of revenue of as much as $100 million per month, approximately 38% of our average monthly state revenue collections,” Millar said.
Those collections include the fuel tax, tolls, ferry fares and other, smaller sources.
Washington motorists pay 67.9 cents per gallon in gasoline taxes, the country’s fourth highest total, according to the American Petroleum Institute. That includes the state’s 49.4 cents a gallon tax as well as the federal gas tax and other fees.
Millar based his coronavirus-driven estimate on recent traffic patterns as well as the state’s experience in other low-traffic events such as severe winter weather and the 2007-09 Great Recession.
Washington’s plight is “not just a road and bridge issue. This is having a huge impact on rail, ferries and transit,” said Jim Tymon, executive director of the American Association of State Highway and Transportation Officials, which is pushing for federal help.
State revenues and bonds comprise about 85% of the Washington transportation budget.
“To provide you with some context on how this revenue loss will affect our budget and ability to perform critical functions,” he listed some projects that could be affected:
▪ 1,050 capital construction projects. That includes highway improvements, ferry, rail, traffic, facilities and local program projects.
▪ 650 preservation projects, including preservation of roadways, bridges and other facilities.
▪ Maintenance work, which includes activities like snow and ice removal, pavement patching and bridge deck repair.
Millar cited immediate steps to reduce expenses, such as maintaining ferries’ winter schedule through June 20 and reduced Amtrak Cascades service from four daily round trips between Seattle and Portland, Oregon, to one. The department also is deferring both permanent and non-permanent new hires.
Washington, D.C. lawmakers are expected to seriously consider help for embattled transportation agencies around the country in a new economic aid package likely to be discussed in the weeks ahead.
While President Donald Trump and members of Congress from both parties have expressed interest in federal infrastructure funding, there is reluctance from Senate Majority Leader Mitch McConnell, and it’s unclear when such a plan would be adopted.
“We all have governors regardless of party who would love to have free money. And that’s why I said yesterday we’re going to push the pause button here, because I think this whole business of additional assistance for state and local governments needs to be thoroughly evaluated,” the Kentucky Republican told radio host Hugh Hewitt Wednesday.
“Leader McConnell is right,” added Rep. Kevin Brady, R-Texas, in a Fox News interview.
“We really need to not turn to how many more trillions of dollars can we spend, but how can we while applying max pressure on the virus and helping these businesses and states begin to reopen — because I think that is key to getting people back to work,” said Brady, top Republican on the tax-writing House Ways & Means Committee.
Pushing hard for aid is AASHTO, which is seeking $49.95 billion nationwide for help.
The organization estimated that in fiscal 2019, state transportation revenues — including tolls and fuel taxes — provided $111 billion nationwide. Preliminary projections show about a 30% drop over the next 18 months.
That would mean a nationwide plunge of $16.7 billion for the rest of the current fiscal year and another $33.3 billion in fiscal 2021.
This story was originally published April 22, 2020 at 1:58 PM with the headline "Coronavirus has hit Washington’s transportation budget hard. Now state is asking for help."
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