Senate staff warned lawmakers on Jan. 13 that Washington’s transportation budget faces persistent deficits over the next six years driven by lower fuel‑tax receipts and reduced Climate Commitment Act (CCA) transfers, leaving several accounts — notably the ferries and the State Patrol — structurally short of revenue.

In a staff presentation, Haley Gamble, transportation budget coordinator for the Senate Transportation Committee, said the committee’s total transportation budget is about $14.5 billion for the current biennium and that the gas tax remains the single largest revenue source. Gamble showed that forecasted transportation revenues are roughly $500 million (about 7%) lower for the 2023 biennium compared with the June 2022 forecast and that much of the decline is tied to fuel‑tax receipts.

Why it matters: committee staff told senators the decline in fuel‑tax revenue is partly driven by increased adoption of alternative‑fuel vehicles and changes in driving behavior following the pandemic, and that other revenue streams — including CCA transfers — have not fully filled the gap. With current spending plans, staff projected cumulative shortfalls reaching billions of dollars over a six‑year window unless the Legislature increases revenues, reduces spending, or reschedules projects.

Staff presented the current revenue mix and notable numbers: total transportation spending of roughly $14.5 billion; gas tax revenue of about $3.36 billion (roughly 23% of the budget) over the biennium; federal funds at about 17%; ferry program expenditures of $1.47 billion; local programs at $900 million; and the Washington State Patrol budget at about $670 million. Gamble said the most recent Department of Ecology estimate for Climate Commitment Act proceeds showed roughly $2.2 billion for the current biennium, a figure that staff said is about $500 million lower than what the Legislature had assumed when it last programmed CCA proceeds.

Staff listed several pressure points: the ferry and State Patrol accounts do not generate enough revenue to cover ongoing costs and have relied on transfers from other funds; capital projects are reporting cost increases and scope growth that total roughly $1 billion beyond current budgets; the statewide culvert replacement program has an estimated $5 billion remaining need to complete required work (the governor’s proposed budget added $120 million toward that need); and the Department of Transportation has indicated it would need about $1.5 billion more per year to achieve a state of good repair across modes.

Gamble summarized the tradeoffs lawmakers will face in session: “Increasing revenues, reducing spending, or rescheduling projects” are the primary levers available. She also noted the governor’s 2025‑27 proposal had built in roughly $1 billion in capital reductions to balance the proposed budget for that biennium.

Senator Bill Fortunato asked a specific question about sales tax paid by operating agencies and whether staff had quantified how much of those sales‑tax costs are effectively backfilled to the State Patrol and ferry operations; staff responded that prior calculations had focused on capital sales tax and they would research operating‑side sales‑tax impacts and return with numbers.

The presentation highlighted that particular toll program accounts — including State Route 520, the Gateway program and I‑405 — have seen recent cost increases and some recent projects are returning higher than anticipated bids. Staff also said the ferry fleet will require continued vessel investment, estimating roughly one new vessel per year would be needed to replace and modernize the fleet over time.

The session closed with staff urging members to consider a mix of revenue, spending, and scheduling options as the Legislature begins the 2025 session.

Ending: staff said they would provide additional detail and follow‑up analyses as requested by committee members during the session.