Ballot initiative could impact state funding for local transportation projects

A ballot initiative that aims to limit car tab fees to $30 per year could have a significant impact on local transportation funding across the state, as well as in Blaine. The effects on Blaine wouldn’t be direct, but they could potentially lead to reduced state funding for local transportation projects such as the proposed grade separation at Bell Road.

Initiative 976 is an initiative that was filed for consideration in the 2019 legislative session. The state legislature did not act on the initiative, and therefore, Initiative 976 will be presented to voters during the next general election in November 2019, according to the Association of Washington Cities (AWC).

Initiative 976 would limit motor vehicle license fees (car tab fees) to $30 per year; repeal or reduce certain motor vehicle weight fees; repeal the authority for city Transportation Benefit Districts (TBDs) to impose vehicle fees; reduce electric vehicle fees to $30 per year; and repeal the 0.3 percent tax on motor vehicle retail sales, among other things.

If the initiative passes, the authority for TBDs to impose fees would be eliminated. This would not directly impact the city of Blaine, whose TBD is funded by local sales taxes rather than vehicle license fees. According to AWC, there are more than 100 cities that have formed TBDs to fund local transportation projects, and over 60 TBDs receive revenue from vehicle license fees.

However, there could be an indirect impact on Blaine, which depends on state funding for many of its transportation projects. According to AWC, if the initiative passes, there would be reductions in many of the state accounts associated with transportation funding. “The state estimates lost revenue of $588 million in the 2019-21 biennium, $677 million in the 2021-23 biennium and $758 million in the 2023-25 biennium,” said AWC’s website.

According to Blaine city manager Michael Jones, this could make it harder for Blaine to receive state transportation funding in the future. “It could have a significant impact on the state’s general collection of transportation funding, to the tune of billions of dollars over time,” said Jones. “Some of that goes towards projects that help local and regional transportation.”

As an example, Jones mentioned the Bell Road grade separation project, which is intended to alleviate traffic delays caused by the Department of Homeland Security’s train inspection facility just south of city limits. The project would create an overpass over the Burlington Northern Santa Fe (BNSF) mainline.

“That’s the kind of project that it would be more difficult to get funding for,” said Jones. “When the pool of money gets dramatically smaller, it becomes more difficult to get funding for any project.”