House Transportation staff warn of budget squeeze: falling fuel revenues, rising construction costs, culvert mandate and ferry funding timing loom large

Summary

Committee staff told members the transportation budget faces a roughly $2.2 billion 10-year decline in forecasted state revenues, steep construction cost increases on major projects, a court-ordered culvert replacement mandate with a large funding gap, and uncertain ferry procurement costs that may arrive after session.

Committee staff told the House Transportation Committee Thursday that the state transportation budget faces multiple near-term pressures: a drop in projected fuel- and fee-related revenue compared with earlier forecasts, a steep rise in construction costs since 2020, a multibillion-dollar culvert-replacement obligation stemming from a federal court injunction, and ferry vessel procurement costs that may not be known in time for this session’s final budget decisions.

Staff coordinator Mark Mattson and budget coordinator Amy Skay presented a data-driven overview of the transportation budget and the risks that will shape the committee’s 2025 work. Mattson summarized the revenue picture: “The cumulative revenue change equates to about, a drop of $2,200,000,000 over 10 years,” he said, describing the difference between the February 2024 forecast and a lower November forecast that projects declining fuel-tax receipts over the decade.

Mattson presented high-level figures for the current biennium: appropriations total roughly $14.6 billion,…

House Transportation staff warn of budget squeeze: falling fuel revenues, rising construction costs, culvert mandate and ferry funding timing loom large

Summary

Subscribe to keep reading