Washington faces transportation funding crisis but road usage charge still iffy proposition
Jan 9, 2025, 5:37 PM
Traffic in the Seattle area. Washington lawmakers are debating how to fund transportation. (Photo courtesy of KIRO 7)
(Photo courtesy of KIRO 7)
With Washington facing a multi-billion dollar budget shortfall, legislative leaders stress the importance of expanding and maintaining the state’s existing roadways. However, the question of where the necessary funding will come from in the long run remains unresolved.
On Thursday, Democratic and Republican leaders of the House and Senate Transportation Committees met with journalists at the Capitol in Olympia to preview what to expect in the upcoming 105-day session.
Funding transportation continuous debate between Washington lawmakers
A key topic of discussion was the long-debated road usage charge (RUC), a fee based on miles driven, which has yet to be implemented despite years of discussion. Among the central issues was the potential for a road usage charge to replace the state’s declining motor vehicle fuel tax. The proposal received mixed reviews.
The conversation began with a clear acknowledgment that Washington’s transportation system is facing significant financial challenges. Senator Marko Liias, the Democratic chair of the Senate Transportation Committee, highlighted the rising construction costs combined with a steady decline in revenue from the gas tax.
“In the past few years, we’ve seen a 70% inflation in the cost of transportation projects,” Liias said.
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This increase, coupled with the rise of electric vehicles (EVs) and more fuel-efficient cars, has significantly reduced gas tax revenue, traditionally Washington’s primary funding source for transportation. Liias emphasized the need for new revenue streams to maintain the state’s economic competitiveness, particularly as it pertains to its transportation infrastructure.
“Our economy depends on our ability to move people and goods,” he said, underscoring the importance of ongoing investment in roads, ferries and other infrastructure projects.
Liias acknowledged the political difficulty in finding a bipartisan path to implement a new road usage charge.
Senator Curtis King, the ranking Republican on the Senate Transportation Committee, was more cautious. While acknowledging the state’s revenue shortfall, King warned solutions like the road usage charge could face resistance, especially if the funding is not allocated appropriately. He cited the challenge of funding projects like ferries, where the use of Climate Commitment Act (CCA) funds is constrained.
“We have to look at how we utilize the money we’re already receiving,” King said, pointing out inefficiencies in funding mechanisms.
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However, King also stated he was open to further discussions on additional revenue sources, including the use of a sales tax on vehicles, which he believes has a more direct link to transportation needs.
Representative Andrew Barkis, the ranking Republican on the House Transportation Committee, echoed concerns about revenue shortfalls but expressed skepticism about the effectiveness of large, comprehensive transportation packages.
“I think the days of transportation packages are behind us,” Barkis said.
Instead, he emphasized the importance of prioritizing projects already underway, such as the Connecting Washington and Move Ahead Washington plans. These projects, he argued, require consistent revenue to complete and prevent further backlogs.
The road usage charge, or “RUC,” emerged as one of the most contentious aspects of the discussion. While all four legislators acknowledged the current system, which relies on gas taxes, is unsustainable due to the rise of electric vehicles and more fuel-efficient cars, they differed on how to proceed.
Representative Jake Fey, the Democratic chair of the House Transportation Committee, was more open to the idea.
“It’s clear that the gas tax is going down, and this is a long-term solution to a problem we cannot ignore,” he said.
Democratic chair of House Transportation Committee open to road usage charge
Fey highlighted the fairness of an RUC, noting it would ensure all drivers contribute to maintaining the state’s roads, regardless of the fuel efficiency of their vehicles. He also pointed out that Washington has already been studying road usage charges for years through pilot programs.
Other states, such as Virginia, Utah, and Hawaii, have already enacted legislation to implement similar charges. Hawaii’s RUC for EV vehicles takes effect on July 1. It’s $8 for every 1,000 miles driven, with a maximum of $50 in a calendar year.
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Fey acknowledged that rolling out an RUC would take time but argued it would be a more equitable method of funding road maintenance compared to the gas tax, particularly as electric vehicles (EVs) become more common.
Throughout the discussion, the legislators stressed the importance of finding bipartisan support for a road usage charge.
Both Liias and Fey pointed out the gas tax system is based on the principle of “the more you use, the more you pay,” a philosophy they want to preserve in a future system. However, implementing an RUC in a way that appeals to both urban and rural communities — across the state’s diverse geography — would require significant compromise.
When lawmakers convene for the 105-day session on Monday, they will continue to debate how best to address the state’s transportation funding shortfall. While some support new taxes and revenue sources, others remain cautious, questioning whether they can achieve a sustainable solution that balances the state’s needs with the economic impact on taxpayers.
As the session continues, the road usage charge will undoubtedly remain a key issue in the debate over how to fund Washington’s future transportation projects.
Matt Markovich often covers the state legislature and public policy for KIRO Newsradio. You can read more of Matt’s stories here. Follow him on X, or email him here.
