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Counties seek answers after state fuel‑tax allocation error; Clallam commissioner describes $100 million shortfall dating to 2006
Summary
County commissioners were briefed May 13 about a statewide motor‑vehicle fuel‑tax distribution error estimated to have underfunded counties by roughly $100 million dating back to about 2006.
Clallam County commissioners were briefed May 13 about a statewide motor‑vehicle fuel‑tax distribution error that county officials say has resulted in roughly $100 million in underpayments to counties dating back to about 2006.
Why it matters: County road budgets rely on fuel‑tax allocations. A long‑running miscalculation that redirected a portion of funds to the wrong apportionment could reduce county resources for road maintenance, projects and operations.
What the county reported: Commissioner Zients summarized findings from the County Road Administration Board (CRAB) and the Association of Washington Cities/Counties (WASAC). Staff discovered a miscalculation in the formula used to determine the county share of motor‑vehicle fuel tax; the error dates to about 2006 and has produced an estimated shortfall of at least $100 million distributed among counties. The shortfall, described in the meeting as spread over multiple years, averages roughly $5.5 million per year when amortized over the period cited.
Actions taken: WASAC staff met with the state treasurer and the state auditor’s office. The treasurer agreed to correct distributions moving forward for the current biennium but declined to repay prior amounts. The treasurer’s office indicated record‑retention policies likely prevent full reconstruction of distributions before 2014. WASAC staff was advised the auditor lacks authority to contract for an outside special investigation; WASAC has been directed to send a letter to the state treasurer requesting preservation of motor‑vehicle fuel‑tax records and to prepare a supplemental budget request to the state auditor asking for an audit of gas‑tax records to determine the accurate shortage.
Legal/administrative note: The meeting transcript referenced RCW citation for the statute governing gas‑tax apportionment (as cited during the meeting). A separate court matter involving public defense caseload standards is scheduled for June 16 in Tacoma to decide whether counties have standing on another issue WASAC is pursuing; commissioners mentioned that hearing as part of WASAC updates.
Next steps: County and WASAC staff will seek preserved records and press for additional audit work. The commissioners said they did not expect counties to be made entirely whole but are pursuing steps to clarify the scope and recoverable amounts.
