County engineers urge state support as costs rise; CRAB seeks supplemental funding for local road programs

Joint Transportation Committee · November 20, 2025

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Summary

County engineers from Chelan and Douglas described rising material, equipment and insurance costs, flat gas tax revenue, and tax increment financing impacts; the County Road Administration Board requested supplemental funding for program startup and federal bridge compliance.

County officials told the Joint Transportation Committee they face an affordability squeeze as core road revenues lag while materials, equipment and insurance costs rise.

Axel Swanson, managing director with the Washington State Association of County Engineers, and Chelan County Engineer Eric Pearson described flat or declining gas‑tax receipts, rising unit costs for crushed surfacing and vehicles, and growing tort/insurance premiums. Pearson said the county was notified of a proposed tax increment financing district in the Malaga area that will divert incremental tax receipts to the port district and reduce local levy capacity.

Douglas County Engineer Aaron Simmons said counties are responding by deferring preservation work, instituting hiring freezes and prioritizing core functions. Both counties asked the legislature to consider revenue options (constitutional protection for alternative revenue, changes to levy caps) and statutory fixes (reimbursement rules for road improvement districts) to make local matches and assessments workable.

Jane Wall, executive director of the County Road Administration Board (CRAB), described the agency’s grant delivery record and requested supplemental funding: $2 million to staff and prepare counties for the new local roads program (budgeted to start July 1, 2027) and $2.5 million to help jurisdictions meet federal bridge load‑rating deadlines without drawing down preservation funds. CRAB argued that investments in local preservation deliver "dollars with traction" and urged the committee not to overlook county needs in statewide preservation funding.

No votes were taken; committee members thanked the presenters and signaled continued interest in legislative options to shore up county road finances.