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State study models four ways to fund sidewalks; commissioners weigh legal risk and equity
Summary
A Joint Transportation Commission–commissioned study presented options — sidewalk utility, modified TBD sales tax, REET increase and stormwater-fee modification — and recommended the legislature consider authorizing a modified TBD sales tax and an optional sidewalk utility; commissioners discussed regressivity and legal tests such as Seattle’s prior utility case.
Nicole White, program coordinator in the city’s Division of Transportation and Sustainability, summarized a state-level study on sidewalk funding and explained four modeled options: a sidewalk utility, a modified Transportation Benefit District (TBD) sales tax, a real estate excise tax (REET) increment and a modified stormwater utility fee.
White said the consultant estimated roughly 560 miles of missing sidewalks in Spokane and evaluated options by adequacy (how much revenue they raise), stability, simplicity, regressivity and economic compatibility. The study found a modified TBD sales tax and a sidewalk utility would raise the most usable revenue; a modified stormwater fee would generate comparatively little (approximately $325,000 to $704,000 in modeled scenarios) and was judged a poor fit.
Staff flagged legal and political constraints: a sidewalk utility is not currently authorized in Washington and could expose jurisdictions to legal risk unless state law explicitly authorizes it or a local model demonstrates a direct, measurable benefit to property owners (a three-part test referenced in prior Seattle litigation). The Joint Transportation Commission consultant recommended the legislature consider authorizing a modified TBD sales tax and allowing jurisdictions willing to accept legal risk to implement a sidewalk utility.
Commissioners and staff discussed trade-offs: sales-tax options can be administratively simple but are regressive; REET is sensitive to economic cycles; a sidewalk utility could be stable but may require careful benefit mapping to property owners. The Climate Resilience and Sustainability Board was noted as advocating for a sidewalk utility among its legislative priorities.
Commissioners asked whether state authorization would remove legal risk; White said authorization could help but that the Seattle precedent may still impose evidentiary requirements that a local model must satisfy.
Several commissioners indicated interest in pursuing legislative outreach and including sidewalk funding in TBD or council legislative priorities, while noting the need to address distributional impacts and administrative complexity before recommending a path forward.
