TRANSPORTATION

BACKGROUND -- Our transportation system is literally the arteries of our economy. One thing has become increasingly clear in recent decades, the arteries are clogged.

Investment in transportation has not kept pace with our rapid population growth and increased economic activity. Since 1980, our state's population has increased more than 50% while vehicle miles driven have doubled. But capital investment in transportation as a percentage of personal income has actually decreased.

The problem has reached crisis proportions. Personal and freight mobility is consistently cited as an extraordinary cost of doing business in Washington and a hindrance to job creation and retention here. Transportation problems are consistently at the top of the list of "business climate" issues cited by Washington Competitiveness Council and other business and labor leaders.

Earlier this decade, the problem was exacerbated by a series of tax-cutting initiatives -- like Initiative 695 that disproportionately harmed our ferry, transit and highway systems.

In 2003, after the state's share of the gas tax had been frozen -- eroding in value -- for more than 12 years, the legislature approved a bipartisan transportation funding package that included a 5-cent gas tax increase. The $4.2 billion revenue package included funds for some 158 specific projects, many of which have now been completed.

In 2005, the Legislature approved an additional 9.5-cent gas tax increase to be phased in over four years. This $8.5 billion investment in Washington state was solidly affirmed by state voters who supported the gas tax when right-wing radio hosts championed I-912 to repeal it later that year.

But even with these long-overdue investments, transportation issues remain at the top of the list of business climate issues in Washington state. Expensive mega-projects, such as the replacement of the crumbling Alaskan Way Viaduct and the 520 floating bridge, are only partially funded and loom on the immediate horizon.

In addition, while ferry riders have stepped up to replace lost I-695 revenue -- ferry fares have increased 62 percent since 2000 -- a new ferry financing study released in 2007 shows the Washington State Ferries face a significant budget shortfall in paying for capital projects, including boat replacement and needed terminal expansion.

LABOR’S POSITION -- The Washington State Labor Council recognizes the critical role transportation investment has in creating and maintaining family-wage jobs, improving our competitiveness and economy, enhancing our quality of life and creating a better environment.

Our state must make a significant commitment to investing in transportation and that requires a significant, reliable and sustainable funding source(s). Further, the WSLC supports apprenticeship and training programs to insure the availability of a skilled transportation workforce, and the utilization of project labor agreements and apprenticeship set-asides on major projects.

With the 2003 and 2005 transportation packages, our state took good, but long overdue, first steps in addressing our transportation problems. More must be done to stabilize the funding of our highway, transit and ferry systems.

1998 -- Business, labor and many other constituencies called on the Legislature to pass a Gov. Locke-proposed gas-tax increase. Instead, the Republican-controlled legislature approved Ref. 49, which financed $2.4 billion for five years worth of transportation projects largely through the sale of $1.9 billion in bonds. Voters approved Ref. 49 that fall.

1999 -- Before Ref. 49 projects even begin, the Republican Party endorses and helps pass Initiative 695, which reduced car-tab fees to a flat $30 per vehicle. I-695's passage not only removes finances for the Ref. 49 bonds, it cuts billions in revenue from the highway, transit and ferry systems. Voters approve I-695.

2000 -- Faced with the transportation funding crisis brought on by I-695, the Democrat-controlled legislature applies a "Band-Aid," with a budget restoring about one-third of Ref. 49 funds.

2001 -- A number of bills are passed designed to improve "efficiency" at the Department of Transportation, but with no additional funding.

2002 -- The legislature passes a measure authorizing a Puget Sound regional transportation package. After Tim Eyman threatens to repeal any gas-tax increase, the legislature votes to put Ref. 51, raising the gas tax by 9 cents, on the fall ballot. Ref. 51 fails.

2003 -- The legislature approves a bipartisan $4.2 billion transportation funding package that includes a 5-cent gas tax increase.

2005 -- SSB 6103 passes, raising gas taxes 9.5 cents over four years. This $8.5 billion investment in Washington state was solidly affirmed by state voters who supported the gas tax when right-wing radio hosts championed I-912 to repeal it later that year.

2006 -- SB 6480 extended the state's apprenticeship utilization standards to Department of Transportation projects. (See position paper on Apprenticeship.) Passed both houses, and signed into law.

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Copyright © 2007 — Washington State Labor Council, AFL-CIO