Cities have to rework budgets and prioritize road projects with the loss of funding from Transportation Benefit Districts. The Rucker Street improvement project is shown here on Sept. 1. (Sue Misao / Herald file)

Cities have to rework budgets and prioritize road projects with the loss of funding from Transportation Benefit Districts. The Rucker Street improvement project is shown here on Sept. 1. (Sue Misao / Herald file)

Cities start to deal with the fallout of I-976

Without the revenue car tabs brought in projects and road maintenance are likely to be postponed.

EVERETT — Snohomish County cities are set to lose millions of dollars for road maintenance projects with the passage of Initiative 976. The measure, approved by 58% of the voters in the county according to latest counts, reduces most car tabs to $30.

Many cities are still deciding next steps. One prepared for the measure’s passage by proactively adjusting its budget. All are likely to have to postpone construction projects and road maintenance.

Before the election Everett Mayor Cassie Franklin warned approval would have devastating impacts on the city.

The city is losing about $1.5 million — about 41% — of its street maintenance and paving budget, and another $700,000 that comes from the state for paratransit bus service.

In Everett, the measure passed with about 60% of the vote.

“I do feel our residents need a better understanding on what their taxes pay for and how much the city does with those dollars,” Franklin said. “It will impact what we are able to provide. There‘s no way around that.”

For 2020, the city has about $700,000 in contingency funds in the transportation benefit district that can be used to help cover the shortfall.

It’s not enough to cover the entire loss, Franklin said, but gives the city a few more months before feeling the impacts.

Early next year the city will start to prioritize projects.

“We don’t have the resources to do it all,” Franklin said.

In the long-term, the city has to either redirect funding from other city services or reduce road maintenance, said Kathleen Baxter, a city spokesperson.

Lynnwood won’t lose all the funding its transportation benefit district brings in. The $1.2 million that car tab fees brought in last year will disappear. But the $2.5 million collected by a 0.1% sales and use tax won’t.

The game plan, according to city spokesperson Julie Moore, is for staff to bring forward a balanced budget reflecting passage of the initiative to council members later this month. Then it’s up to the city council to either move forward with the reduced spending plan for streets or find money in other places, she said.

The passage of I-976 eliminates $700,000 — about 37% — of Edmonds’ streets budget, according to Mayor Dave Earling.

“I was heartened to see that Edmonds residents rejected I-976 by a vote of over 56%,” Earling said in a press release. “For these reasons, we will do our best not to place the burden of this revenue shortfall solely on the transportation budget.”

Mountlake Terrace’s Transportation Benefit District collects about $330,000 a year for repaving and reconstructing roads, and capital projects, said Scott Hugill, city manager.

The city council will identify next steps going forward in the coming months, Hugill said.

In Granite Falls the revenue from the Transportation Benefit District brought in $77,000 in 2018, accounting for about a third of the city’s street fund.

“We had already anticipated that the initiative would pass and have structured our 2020 budget and long-range financial forecast accordingly,” said Brent Kirk, Granite Falls city manager in an email.

Next year, the city plans to divert revenue from the city’s general fund into the streets fund, according to Kirk. Doing so will reduce money for other things such as city parks, building maintenance or community events.

”As the economy cools off — especially if we fall into a recessionary environment — the impacts will become more significant and may result in a reduction in levels of service,” Kirk said.

This could include a reduction in repairing potholes, repaving roads and constructing sidewalks.

As cities work to bridge gaps in transportation funding, officials will also be keeping close tabs on a lawsuit announced recently challenging the measure.

The Snohomish County cities are indirectly part of the lawsuit. The Association of Washington Cities, a group all five belong too, signed on as a plaintiff.

Lizz Giordano: 425-374-4165; egiordano@heraldnet.com; Twitter: @lizzgior.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

LifeWise local co-directors Darcie Hammer and Sarah Sweeny talk about what a typical classroom routine looks like on Monday, April 14, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett off-campus Bible program draws mixed reaction from parents

The weekly optional program, LifeWise Academy, takes children out of public school during the day for religious lessons.

Protesters line Broadway in Everett for Main Street USA rally

Thousands turn out to protest President Trump on Saturday in Everett, joining hundreds of other towns and cities.

An EcoRemedy employee checks a control panel of their equipment at the Edmonds Wastewater Treatment Plant on Thursday, April 17, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds launches technology to destroy PFAS

Edmonds is the first city in the country to implement… Continue reading

Over a dozen parents and some Snohomish School District students gather outside of the district office to protest and discuss safety concerns after an incident with a student at Machias Elementary School on Friday, April 18, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
Parents protest handling of alleged weapon incident at Machias Elementary

Families say district failed to communicate clearly; some have kept kids home for weeks.

Irene Pfister, left, holds a sign reading “Justice for Jonathan” next to another protester with a sign that says “Major Crimes Needs to Investigate,” during a call to action Saturday, April 12, 2025, in Arlington. (Aspen Anderson / The Herald)
Arlington community rallies, a family waits for news on missing man

Family and neighbors say more can be done in the search for Jonathan Hoang. The sheriff’s office says all leads are being pursued.

Mary Ann Karber, 101, spins the wheel during Wheel of Forunte at Washington Oakes on Tuesday, April 1, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Lunch and Wheel of Fortune with some Everett swinging seniors

She’s 101 and he’s 76. At Washington Oakes, fun and friendship are on the menu.

Connect Casino Road Director Alvaro Gullien speaks at an Everett City Council meeting to share community thoughts regarding affordable housing and preventing displacement of those that live along Casino Road on Wednesday, April 16, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
How will Everett’s comprehensive plan work in Casino Road?

Residents in the diverse, tight-knit neighborhood want “Investment without displacement.” The city’s plan will help achieve that, staff say.

Henry M. Jackson High School’s FIRST Robotics Competition championship robotics Team 2910 Jack in the Bot on Thursday, April 24, 2025 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Mill Creek robotics team celebrates world championship win

The team — known as “Jack in the Bot” — came in first place above about 600 others at a Texas world championship event last week.

Trees and foliage grow at the Rockport State Park on Wednesday, April 3, 2024 in Rockport, Washington. (Annie Barker / The Herald)
Washington Legislature approves hiking Discover Pass price to $45

The price for a Washington state Discover Pass would rise by $15… Continue reading

The Washington state Capitol on April 18, 2025. (Photo by Jacquelyn Jimenez Romero/Washington State Standard)
Parental rights overhaul gains final approval in WA Legislature

The bill was among the most controversial of this year’s session.

Snohomish firefighters appeal vaccine suspensions to Ninth Circuit

Despite lower court’s decision, eight men maintain their department did not properly accommodate their religious beliefs during COVID.

A rental sign seen in Everett. Saturday, May 23, 2020 (Sue Misao / Herald file)
Compromise reached on Washington bill to cap rent increases

Under a version released Thursday, rent hikes would be limited to 7% plus inflation, or 10%, whichever is lower.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.