Forecast: Puget Sound Region to Get 50 Cent Return for Every State and Federal Tax Dollar it Generates for Transportation

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FOR IMMEDIATE RELEASE: April 18, 2000 Contact: Rick Olson (206) 587-5060, rolson@psrc.org

Forecast: Puget Sound Region to Get 50 Cent Return for Every State and Federal Tax Dollar it Generates for Transportation

SEATTLE—A new forecast concludes that Initiative 695 cuts $9 billion in funding for road, transit and ferry projects in the central Puget Sound region over the next 20 years. The forecast also says the state's most populous region can be expected to export nearly 50 cents on every transportation tax dollar it generates to other parts of the state over the next 20 years under current state policies.

The forecast is contained in a new report, "Impact of I-695 on Regional Transportation Revenues" produced by economists at Porter and Associates, a Seattle-based consulting firm, for the Puget Sound Regional Council. The forecast is a foundation for the update of the Metropolitan Transportation Plan for King, Pierce, Snohomish and Kitsap counties. The plan update, underway this year, will be required to match the region's growing transportation needs with the funding to pay for them.

"It's reasonable to expect certain parts of the state to contribute more than other parts to support transportation systems we all depend on. But this forecast of 50 cents on the dollar is alarming," said Seattle City Councilmember Richard McIver, who chairs the region's Transportation Policy Board. "The forecast underscores the need to explore new state policies that will be fair to all parts of the state over the long haul so each region of the state has adequate transportation systems to keep up with growth."

Among the key findings of the forecast:

Initiative 695 reduced funds available for the region's transit systems, ferries and highways by $9 billion.
The region is currently $25 billion short of what will be required for transportation systems to keep pace with growth over the next 20 years.
The region typically receives 92 cents for every state and federal transportation tax dollar it generates.
The state's urban areas carry most of the burden for statewide transportation funding. Other urban areas of the state, including Clark and Spokane counties, also export transportation tax dollars to other parts of the state.
Under current state policies, the central Puget Sound region's return on highway revenues falls to just 50 cents on the dollar through 2020.
I-695 increased the forecast of transportation tax dollars exported to other parts of the state by $2.2 billion over the next 20 years.

The report will be presented to the Washington Transportation Commission in Olympia on April 20th. The report detailing the forecast is available on the Web at psrc.org or at the Regional Council's Information Center at (206) 464-7532.

The Regional Council develops policies and coordinates decisions about regional growth and transportation planning in King, Pierce, Snohomish and Kitsap counties. The Council is composed of over 80 county, city, port, transit, tribal and state agencies serving the region. It receives about $100 million in federal transportation funds each year and coordinates, sets priorities, and evaluates the most efficient ways to target those funds to support state and local transportation and growth management plans.

The region's Metropolitan Transportation Plan, adopted in 1995, is currently undergoing a major update. An updated draft plan is scheduled for release and public comment in August. The updated plan will map the region's transportation planning to keep pace with growth through the year 2030. Forecasts indicate that the four county region can expect an additional 1.5 million more people by 2030. The region's current population is about 3.2 million.