Lobbyist outlines 2025 Washington budget outcomes affecting Kitsap Transit: gas tax increase, sales‑tax transfer and reappropriations

KITSAP COUNTY, Wash. — Dylan Doty, a statewide transit lobbyist, briefed the Kitsap Transit board on May 6 about the recently concluded 2025 Washington legislative session and provisions that affect transit funding and projects.

Doty summarized a session that combined several billion dollars of new revenue with spending reductions; he described “about $5,000,000,000 in cuts, coupled with roughly $9–10,000,000,000 in new revenue” in the state operating picture and noted the governor has until May 20 to sign or veto bills. He said the transportation budget raised roughly $3.2 billion for transportation over six years, highlighted a 6¢ indexed gas‑tax increase and a 0.1 cent sales‑tax transfer from the state general fund to transportation that will bring roughly $600 million biannually to the transportation bucket.

Nut graf: Doty told the board that, subject to the final signings and possible vetoes, Kitsap Transit retained several items in earlier state budgets or gained authorization including reappropriated design funding for hydrofoil work, toll‑credit authorization, and park‑and‑ride and transfer center funding; but he cautioned many line items and allocations remain fluid until bills are signed.

Specific items Doty identified as affecting Kitsap Transit included a $4 million reappropriation for hydrofoil design under Connecting Washington; toll‑credit authorization for up to $5 million; $5.75 million for an SR‑16 park and ride; an $8.009 million reappropriation for the SR‑305 Day Road park‑and‑ride; and a future commitment (reappropriation) for the Silverdale Transfer Center previously listed at $2.3 million. He also described a $9 million “World Cup” transit funding bucket intended to support event‑period service, noting the bill text and distribution (40/40/20 split among agencies) required further clarification.

Doty said transit program reductions included roughly $10 million overall for various transit program categories, and that certain specific grants and subsidies were smaller than anticipated. He described the session’s rapid schedule and late‑night bill rewrites as a source of uncertainty and urged local agencies to wait for final signed bills and implementation guidance from state agencies.

Board members asked about how local jurisdictions will learn revenue allocations and when funds will be available; Doty said some changes will require Department of Revenue rulemaking, that local receipts sometimes appear 90 days after collection, and that state agency guidance will be needed to interpret new program rules. Doty also noted the potential for federal developments or litigation to change the funding landscape and flagged ongoing uncertainty as a key risk to project planning.

Discussion vs. decision: This was an informational report; no board action was required. Doty’s briefing provided the board with items to watch as state budgets are finalized and agencies issue implementation guidance.

Ending: Doty recommended monitoring the governor’s possible vetoes through May 20 and coordinating with WSDOT and peer agencies as implementation guidance becomes available.