Published: Monday, March 1, 2010
Drop in sales tax revenue a hit to Sound Transit budget
A drop in sales tax revenue means Sound Transit will have to do some juggling to fund its projects.
The economic recession that has hit many pocketbooks hard is hitting Sound Transit’s as well.
The agency predicts a $3.1 billion shortfall in tax revenue from 2009 to 2023. This means a drop to $14.7 billion from $17.8 billion.
While officials say they’re concerned, as of now they don’t expect the reduced tax revenue to delay any major projects, including extension of light rail to Lynnwood by 2023.
The money is coming from two sources. One is a half-cent in sales tax, or 50 cents on every $100 purchase. The other is $30 for each $10,000 of vehicle value in auto license fees.
Those tax receipts have lagged along with the general economy since voters in the Sound Transit district approved the sales-tax increase in November 2008.
Sound Transit officials plan to cut costs by streamlining planning, design and engineering; juggling some project schedules and cutting deadhead bus trips to make up the projected shortfall. No cuts in bus service are planned.
Major construction projects with a high price tag include extension of light rail between Seattle and Lynnwood, Seattle and Bellevue, and Sea-Tac International Airport and Tacoma.
As of now, none of these has been pushed farther into the future, Sound Transit spokesman Bruce Gray said.
“We still believe we can get our projects done and get them done on time,” he said.
The 2008 package also included more frequent service on bus routes, much of which has already begun, including in Snohomish County.
Everett City Councilman Paul Roberts, who serves on the 18-member Sound Transit board, said he’s spoken up to make sure the additional bus trips aren’t cut.
“I’ve certainly been arguing to keep them from being affected,” he said.
This is especially important because the bus service is all that Snohomish County gets from the deal until light rail can be extended north, Roberts said. The 2008 measure is adding some service to Sounder commuter trains between Seattle and Tacoma. No no new trips can be added to the current four Sounder trips per weekday between Seattle and Everett. That’s because of a contract with Burlington Northern Santa Fe Railway, which owns the tracks.
Since the original Sound Transit tax measure was approved in 1996, people who make purchases in the district have paid a sales tax of four-tenths of a cent per dollar for the agency’s bus and train projects. The new share brings the total Sound Transit sales tax to nine-tenths of a cent per dollar.
The new tax originally was estimated to cost each adult an average of $69 each year. The combined sales tax is estimated at $125 each year for each adult.
The district covers south Snohomish County and Everett, all of urban and suburban King County and much of Pierce County.
Projects still to be built under the 1996 tax measure include light rail from downtown Seattle to its University District.
The plan calls for that leg to be complete by 2016 and from the U District to Northgate by 2020. The exact route from Northgate to Lynnwood has not been identified, though it’s expected to follow along I-5. A detailed route is scheduled to be nailed down in 2015, Gray said.
City officials in Bellevue have discussed the route for extending light rail through that city’s downtown. Some have called for a route that would require a tunnel, adding to the cost. A tunnel, however, is not in the budget and if it’s done it would have be paid for in some other way, Gray said.
Bellevue City Councilwoman Claudia Balducci, who serves on the Sound Transit board, said officials are talking about funding a tunnel with a combination of cost savings on the light rail route, contributions from Bellevue and possible federal funds.
Under Sound Transit’s rules, sales tax revenue can’t be siphoned from one geographical subregion of the district to pay for projects in another.
“There’s not money from Everett that would come to Bellevue,” Balducci said. “It’s not the intention of the city of Bellevue to have other jurisdictions fund a tunnel in Bellevue.”
Overall, Roberts said officials are watching the revenue situation closely.
“We’re just going to have see how it plays out,” he said. “This is one of the consequences of a tough economy.”
Bill Sheets: 425-339-3439; sheets@heraldnet.com.
The agency predicts a $3.1 billion shortfall in tax revenue from 2009 to 2023. This means a drop to $14.7 billion from $17.8 billion.
While officials say they’re concerned, as of now they don’t expect the reduced tax revenue to delay any major projects, including extension of light rail to Lynnwood by 2023.
The money is coming from two sources. One is a half-cent in sales tax, or 50 cents on every $100 purchase. The other is $30 for each $10,000 of vehicle value in auto license fees.
Those tax receipts have lagged along with the general economy since voters in the Sound Transit district approved the sales-tax increase in November 2008.
Sound Transit officials plan to cut costs by streamlining planning, design and engineering; juggling some project schedules and cutting deadhead bus trips to make up the projected shortfall. No cuts in bus service are planned.
Major construction projects with a high price tag include extension of light rail between Seattle and Lynnwood, Seattle and Bellevue, and Sea-Tac International Airport and Tacoma.
As of now, none of these has been pushed farther into the future, Sound Transit spokesman Bruce Gray said.
“We still believe we can get our projects done and get them done on time,” he said.
The 2008 package also included more frequent service on bus routes, much of which has already begun, including in Snohomish County.
Everett City Councilman Paul Roberts, who serves on the 18-member Sound Transit board, said he’s spoken up to make sure the additional bus trips aren’t cut.
“I’ve certainly been arguing to keep them from being affected,” he said.
This is especially important because the bus service is all that Snohomish County gets from the deal until light rail can be extended north, Roberts said. The 2008 measure is adding some service to Sounder commuter trains between Seattle and Tacoma. No no new trips can be added to the current four Sounder trips per weekday between Seattle and Everett. That’s because of a contract with Burlington Northern Santa Fe Railway, which owns the tracks.
Since the original Sound Transit tax measure was approved in 1996, people who make purchases in the district have paid a sales tax of four-tenths of a cent per dollar for the agency’s bus and train projects. The new share brings the total Sound Transit sales tax to nine-tenths of a cent per dollar.
The new tax originally was estimated to cost each adult an average of $69 each year. The combined sales tax is estimated at $125 each year for each adult.
The district covers south Snohomish County and Everett, all of urban and suburban King County and much of Pierce County.
Projects still to be built under the 1996 tax measure include light rail from downtown Seattle to its University District.
The plan calls for that leg to be complete by 2016 and from the U District to Northgate by 2020. The exact route from Northgate to Lynnwood has not been identified, though it’s expected to follow along I-5. A detailed route is scheduled to be nailed down in 2015, Gray said.
City officials in Bellevue have discussed the route for extending light rail through that city’s downtown. Some have called for a route that would require a tunnel, adding to the cost. A tunnel, however, is not in the budget and if it’s done it would have be paid for in some other way, Gray said.
Bellevue City Councilwoman Claudia Balducci, who serves on the Sound Transit board, said officials are talking about funding a tunnel with a combination of cost savings on the light rail route, contributions from Bellevue and possible federal funds.
Under Sound Transit’s rules, sales tax revenue can’t be siphoned from one geographical subregion of the district to pay for projects in another.
“There’s not money from Everett that would come to Bellevue,” Balducci said. “It’s not the intention of the city of Bellevue to have other jurisdictions fund a tunnel in Bellevue.”
Overall, Roberts said officials are watching the revenue situation closely.
“We’re just going to have see how it plays out,” he said. “This is one of the consequences of a tough economy.”
Bill Sheets: 425-339-3439; sheets@heraldnet.com.
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