Washington County reviews MSTIP investments and launches funding-strategy work amid budget pressure

Washington County transportation officials gave committee members a detailed update on the Major Streets Transportation Improvement Program (MSTIP), the county’s principal local transportation capital program, and described steps being taken to find new, stable funding for future projects.

The county’s Land Use & Transportation director, Steven Roberts, told the Washington County Coordinating Committee that MSTIP has directed “a little over a billion dollars” of local money into transportation projects since 1986 and that current MSTIP 3f includes about $250,000,000 in allocations for projects and programs. “This really is a — about a 40, almost 40 year old program, that has been a real partnership between the cities and Washington County,” Roberts said.

County staff explained the program’s history, including how Measure 50 and earlier tax-limiting measures reshaped local property-tax authority and rolled MSTIP levy amounts into the county’s base property tax rate. Roberts said the county now receives roughly $15,000,000 per year for MSTIP pay-as-you-go projects and that cost escalation means that the most recent $250 million cycle yields fewer named projects than prior cycles.

Why it matters: committee members and staff framed the update as a planning moment. Roberts said the board of commissioners has authorized bonding authorization of up to $150,000,000 — roughly $60,000,000 to finish earlier bonded cost-sharing projects and up to $90,000,000 to close a funding gap on earlier MSTIP commitments — and that action guarantees completion of prior commitments. Staff said those steps do not eliminate the program’s revenue challenges, however.

Among funding sources discussed were: MSTIP allocations, the countywide Transportation Development Tax (TDT), the county portion of vehicle-registration fees, state Surface Transportation Block Grants and STIF (Statewide Transportation Improvement Fund) allocations, and federal competitive grants including programs created or expanded by the federal bipartisan infrastructure law. Roberts said the county has applied for multiple federal grants but has found them highly competitive.

Roberts and other staff emphasized that county general-fund constraints are prompting a formal effort to diversify revenue. Department heads were asked to model general-fund reductions of 10%, 13% and 17% to give the county administrator options for balancing the budget; staff said those scenarios are analytical tools for deliberation, not adopted spending cuts.

Committee debate centered on tradeoffs: members questioned whether the county should bond a few large, design-ready projects to position them for federal matches, or spread bonding proceeds across many projects. Several members noted the uncertainty presented by changes in the federal administration and the competitive nature of federal grant programs. Roberts said the county’s immediate objective is to complete the projects the board has already committed to and to produce a “resilient funding strategy” later this year to inform the 2026 budget cycle.

Quotes

"We use our MSTIP to pay for the local share, got a lot of federal money leveraged in that calculation," Steven Roberts said, describing how local MSTIP dollars have historically helped match federal grants. "By dollar value, this is the largest single allocation that we've ever had."

"The county administrator has given directions to department heads like myself to prepare budget scenarios that include reductions in our general fund programs of 10, 13, and 17%." Roberts said when describing the county’s budget planning.

Ending

Staff said the next steps include working with the committee and city staff on a resilient funding strategy and further exploring options such as targeted bonding, local fees, registration-fee increases, and other revenue sources. Roberts asked committee members and city managers to participate in upcoming technical and policy discussions as the county prepares recommendations to the board of commissioners.