Sequim lobbyist: state budget shortfalls push local transportation projects into future

Sequim’s Olympia lobbyist, Davor Jurasic, told the City Council on May 13 that a large state operating shortfall and a transportation revenue gap forced lawmakers to postpone funding for many road projects, including Sequim’s long‑running US‑101 access/interchange work.

Jurasic said the Legislature finished its budgets on the final day of the session but faced a roughly $16 billion operating shortfall in a roughly $76 billion four‑year operating plan and a multi‑billion dollar transportation shortfall tied to falling gas tax receipts and rising project costs. He said three revenue bills passed that would raise about $9 billion over six years; the governor still had a period to sign, veto or partially veto bills.

The immediate effect for Sequim: Jurasic said the city’s top priority — the US‑101 (sometimes referenced as the Senators bypass) access/interchange project — was not funded in the House transportation plan and was therefore moved out under the criteria lawmakers used to prioritize projects. Jurasic explained the Legislature used a rule that moved projects out if they were not yet under contract or under construction. He said Sequim had previously secured about $1.5 million for early steps of the project after originally requesting $3 million and that project funding has repeatedly been reallocated to later years when revenues tightened.

In the same presentation, Jurasic said two other Sequim requests received partial funding. The city had sought $1,000,000 for an emergency fueling station from the capital budget and received $500,000 designated as a community project line item; the award language did not specify “Sequim” by name, so staff followed up to confirm allocation. For Margaret Kerner Park the city had submitted a $500,000 Recreation and Conservation Office (RCO) grant request and a separate $1,000,000 individual legislator request. Jurasic reported the $500,000 RCO request was funded in the capital budget but the $1,000,000 legislator ask was not.

Jurasic described several broader drivers behind the funding shortfall: declines in gas‑tax revenue as vehicle fuel consumption drops and rising project costs driven by higher labor and materials. He said a proposed road‑usage charge tied to miles driven — which would have broadened the revenue base as electric vehicle use grows — failed to pass, leaving lawmakers to prioritize existing revenue and delay nonurgent projects. He also said the Senate’s transportation plan had been more robust than the House’s; because the House plan prevailed in the final compromise, some projects that would have been funded under the Senate approach were pushed out.

Jurasic urged Sequim to re‑energize local advocacy and community coalitions for the US‑101 project, reminding councilors that the item has been a multi‑year priority and that local outreach — including earlier petitions and site tours for legislators — will be needed to press future funding cycles. He noted local legislators remain engaged but are constrained by statewide revenue limits and that another revenue forecast midyear will likely trigger further budget work and possibly a special session later in 2025.

On housing and taxes, Jurasic said the Legislature passed a rent‑stabilization bill (often described in the session as rent control or rent stabilization) and that the governor had received the bills for action; he also confirmed a proposal to raise the property‑tax cap from 1% to a higher figure did not pass and the 1% limit remained in place.

Councilors asked questions during and after the presentation about causes of transportation revenue declines (including electric vehicles), whether labor or materials were driving project cost increases (Jurasic said both), and next steps for Sequim’s lobbying and community outreach.

The presentation was informational; Jurasic did not present a council motion and no formal city decisions were made during the work session. He recommended staff and councilors plan renewed outreach to legislators and to redevelop a local coalition to press for the US‑101 funding when revenue opportunities arise.

Looking ahead, Jurasic said the state will receive updated revenue forecasts this summer and that a special legislative session to address shortfalls or make cuts is likely later in 2025.