Department of Transportation Secretary Paula Hammond fired a warning shot across the bow of the good ship Washington State when the Legislature convened early this month.
In simple language, Hammond told legislative leaders that the ferry system is simply out of money. Using its present sources of revenue, it will fall short by $1.3 billion over the next 10 years, or $130 million per year.
The crisis has been developing since the ferry system’s main funding source, the Motor Vehicle Excise Tax, was throttled by a Tim Eyman initiative, which called for the famous “$30 license tab.” Voters loved the initiative and, even though it was thrown out in court, the Legislature was eager to do the people’s bidding and passed it into law.
In recent years, the ferry system has kept operating with quick monetary fixes from the Legislature, delayed maintenance, cost cutting and a series of fare increases levied on helpless commuters and visitors. One reason Whidbey Island’s economy is down is that it costs so much to take the ferry. People with jobs on the mainland are moving off the island or deciding not to live here; while others are deciding not to visit here. A family of two adults and two children pays a hefty fee to visit the island on the Mukilteo-to-Clinton ferry: $6.85 for car and driver, $4.50 for adult passenger and $3.65 for each kid. It’ll cost another $6.85 to get back, bringing the total to $25.80 for the ferry. And that’s the cheap part of the season; prices go up 20 percent during the tourist season. A lot of families think twice before spending $30 just to get to Whidbey Island.
Commuter fares are similar. Ticket prices have pretty much hit the point of diminishing returns. Higher rates cause ridership to decline, which cuts revenue back to what it was before the rate increase.
The solution, short of shutting down entire routes as Hammond said might be necessary, including the Coupeville-to-Port Townsend route, is to find another funding source. Gov. Chris Gregoire has proposed a tax on refined oil and zapping electric car owners with a $100 fee, since they don’t pay the gas tax.
There are other ferry funding ideas floating around in Olympia. The one certainty is that if we want to keep this key ingredient of our transportation system and economy afloat, more money will be needed. The Legislature has no choice but to find the money before it adjourns.