Referendum 49: Is this as good as it gets?

By DAVID SPIVEY
Asphalt Paving Association

At a business breakfast in Lynnwood the other day I was lazily listening, between gulps of Starbucks, to a Republican state senator explain the reasoning for, and the benefits of, Referendum 49. The referendum, along with the establishment of a joint committee to study long-term needs and financing for state and local transportation, is the backbone of the Republican Party's transportation program.

The audience made up mostly of business people from Snohomish County, listened politely. Our meal continued with a bland fare of short-term solutions for long-term traffic problems, and a new committee to study long-term needs and funding methods. What we did not get were signs of much needed leadership and bipartisan vision to solve the major traffic gridlock in this state.

The number of car trips we make each day is increasing while the purchasing power of the state's gas tax is shriniking due to inflation and fuel-efficient cars.

Suddenly my interest rose when I heard the senator say, "This is the year of as good as it gets." I thought that she had changed the subject and was talking about the popular Oscar-winning movie, but no!

"Each year in Olympia," she continued, "we give a pet nickname to the session. This year's session got the name 'As good as it gets."'

Well what did we get?

At the beginning of the session the majority leadership made it quite clear that while there was a well-recognized (if not wholly understood) need for increased highway funding, an increase in the gas tax was not an option.

Was this because of political ideology? Was this because the Republicans could not muster enough votes to get a gas tax increase passed? Was this because there is an election this year? Was this a lack of leadership? You be the judge.

In the final analysis, the Republican-controlled House and Senate came up with a $2.4 billion transportation financing package based essentially on transfer of motor vehicle excise tax (MVET).

A bill put together by the Transportation Committee was also passed, identifying projects that would be funded by the bond issue. Most of these projects are in the Everett-to-Olympia corridor (much to the dismay of citizens in other parts of the state) and include substantial sums earmarked for HOV lanes, state ferries and freight mobility. However, this list of projects might be modified if there is any significant change in the makeup of the House or Senate after the November election.

These actions by the legislature offer some short-term solutions to the state's gridlock, and are welcomed by most sections of the highway construction industry. But they offer little or no immediate relief for motorists and freight movers who are suffering the consequences of past political lethargy! The magnitude of the problem screams for creative bipartisan leadership.

The Texas Transportation Institute reported recently that Puget Sound has become the nation's sixth most congested urban area. This will not come as a surprise to those who regularly crawl across the Evergreen Point Floating Bridge only to be met by the infamous "Mercer mess."

Cars, trucks and buses are spending more and more hours traveling fewer and fewer miles. The rage on our urban freeways will spread to Spokane if the North-South Freeway is not built. Clark and Whatcom counties both have significant bottlenecks affecting the state's economic growth.

Major employers, including Boeing and Microsoft, have expressed concern with their ability to grow in a region with worsening congestion. Frustration, fueled by government's apparent lack of progress in providing long term solutions, has spawned a number of organizations dedicated to the creation of a world-class highway and transportation system for the state. These organizations, are making their members' feelings heard in Olympia.

What's in Ref. 49? If approved by voters in November, this package will: Offer a $1.9 billion bond to support street and highway projects over the next six years. This will be paid off over the next quarter century. Reduce the MVET by about $250 million beginning in 1999-2001. This takes the form of a $30 tax credit for each passenger car. End the practice of valuing vehicles at 100 percent in the second year of ownership. Re-enact Initiative 601 to permit the transfer of funds without reducing spending levels permitted under the initiative. Move a portion of local criminal justice funding from its present MVET source to the general fund and provide for increases. Establish a "blue ribbon" committee to determine how to finance the state's long-term transportation needs.

The Washington Transportation Alliance, which represents a broad range of business and labor interests, and The Road Coalition, representing the construction industry and major labor organizations, have been active in getting the message to policy makers that now is the time to act.

The U.S. Congress recently recognized the importance of transportation funding. Re-authorization bills are now in conference committees. (Washington state is represented on these important committees by Senator Patty Murray and Rep. Jack Metcalf.) These bills, if passed and signed by the President, represent a significant increase in highway funding.

There are moments in history when present vision brings future economic and social benefits. President Eisenhower recognized this when he initiated major expansion of America's highway system in the 1950s. We here in Washington state need that kind of visionary investment now in our highways, in our bridges and in freight mobility to and from our ports.

This does not mean ignoring public transportation, but our primary mode of transportation of people and goods is by road. Sixty-five percent of all commodities (measured by value) transported from sites in Washington are delivered on the state's road system. Travel in private vehicles accounts for 91 percent of all person-miles of travel, up from 86 percent in 1990. More than two-thirds of miles traveled is for non-work related purposes.

Americans are driving more than ever before. The number of trips per person per day increased approximately 10 percent between 1990 and 1995, from 3.8 to 4.2 trips per person per day. During a time when highway use has increased dramatically, when the purchasing power of the state's gas tax has been eroded by inflation and fuel-efficient cars, we have reached a crisis.

Two initiatives could also end up on the November ballot and would have a dramatic effect on highway funding. Initiative 690 would reduce the MVET dramatically and then dedicate 80 percent of revenue to highway construction and maintenance. The other 20 percent would go to criminal justice and to the general fund. Initiative 691 would abolish the MVET entirely over two years.

I have not yet seen data regarding the economic impact of these initiatives, but I can tell you that they are being worked on furiously in Olympia to see what effect they would have on a number of programs.

As good as it gets means either, 'This is the best it can be' or 'This is all you get.'

Contemplate the answer between now and November.

Copyright © 1998 Seattle Daily Journal of Commerce.