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Federal Ruling Could Erase $1 Billion in Funding for 520

A ruling last week by US Transportation Secretary Ray LaHood could put funding for the proposed $4.6 billion 520 bridge replacement in jeopardy, eliminating approximately $1 billion in potential revenue from tolls on I-90 across Lake Washington.

City leaders have repeatedly expressed support for tolling the I-90 bridge across Lake Washington (in addition to tolling the 520 bridge) in part because tolling revenues from both bridges could help close the funding gap for a 520 bridge replacement. The state has been counting on tolling I-90 to pay for about $1 billion of the 520 bridge replacement.

However, last week, LaHood rejected a petition by the state of Philadelphia to allow toll money from Interstate 80, which cuts across the center of the state, to be spent to help offset a transit funding shortfall. In his ruling, LaHood cited a little-known Bush-era federal law that prohibits the use of tolls collected on interstate freeways to pay for anything other than improvements to the freeway itself.

The ruling presents a huge, perhaps insurmountable, impediment to transportation leaders’ plans here in Washington State, where I-90 tolls were supposed to help pay for 520, in addition to improvements to I-90 itself. The loss of that revenue would leave 520 with a funding shortfall of about $1 billion.

“If Washington State wanted to toll I-90 it would be unable to do so right now, unless [toll money] went right back into that road,” Bill LaBorde, policy director at the pro-transit Transportation Choices Coalition, said at a forum last week. “This is one place where the Obama Administration is less progressive than the Bush Administration.” (It’s conceivable, LaBorde says, that toll funds could be used to build light rail on I-90, but that remains “a bit speculative.”)

Contacted by phone today, LaBorde called the ruling “a huge deal” for the region. “A lot of people are thinking the Obama Administration is out of options for financing transportation in the next six-year [transportation] bill,” which was supposed to have been adopted in 2009.

“Maybe they’ll revisit that issue in crafting a new bill.” However, LaBorde adds, the Administration may fear that drivers will revolt (and vote against Democrats in Congress) if their toll money is used to pay for unrelated projects.

City Council members Tom Rasmussen and Richard Conlin, who’ve been active on the 520 issue, have not yet returned calls for comment; we’ve also got calls in to WSDOT deputy director David Dye, house transportation committee chair Judy Clibborn, and the office of Sen. Patty Murray (D-WA), who reportedly supports the federal tolling policy.


  • http://twitter.com/rizzuhjj John Jensen

    It should be noted that this is a statutory requirement, and not a decision from the Obama administration. (See the bottom of this post: http://dc.streetsblog.org/2010/04/06/local-repo…)

    The requirement is from 1998, not a Bush-era ruling.

  • derek

    And I think you meant State of Pennsylvania, not Philadelphia.

  • Grrr

    This is posted as if it's a news article, but instead it's more like a proposal for a news article before any research has been done. I can't tell if you are a news operation or a gossip column when this sort of item comes across. There are different restrictions attached to different federal funding programs. There is clearly more research to be done here before jumping to conclusions.

  • http://www.google.com/profiles/Communicate.with.Mike Mr. Baker

    Jumping to conclusions is ok, driving a car to conclusions is pure evil.

  • Matt_the_Engineer

    “One shouldn't jump to conclusions – it's a long swim back.” Quote appropriately from The Phantom Tollbooth.

  • Pessimist Ed

    Hi Erica,

    Thanks for the great post and all past great posts, rude commenters, of which there are way too many on the internet, notwithstanding.

    I'm confused though, Isn't there already a $2 billion shortfall in funding plans for 520 even without counting this?

    Thanks,

    Pessimist Ed

    PS Mr. Baker, you can be against a $4.7 billion project even if you have a more nuanced view than “cars are evil.”

  • jeff

    The project is 2 billion short without the I-90 money. With those tolls it is only a billion or so short.

  • joshuadf

    Since WSDOT was planning on using smart tolling (with no booths), I wonder if they could simply shift the tolling to right before the highway entrance ramps, or to a few heavily used feeder arterials. I believe the PSRC Transportation 2040 report discusses this already.

    I think this could be a more fair approach than tolling only the highway, since many arterials end up heavily used because of highway traffic, but don't get any funding out of it. Instead, on the west side of the lake Seattle pays for Bridging the Gap to upkeep arterials being used by everyone.

  • debeddy

    Policy is not static; it changes over time. Definitions and concepts in transportation develop in response to current realities. Right now, it's not surprising that LaHood would make a statement consistent with existing federal law … it's also the case that we can't use any tolling money for TRANSIT, for goodness' sake. However: the regional planning authority has recognized that SR520 and I90 bridges function as a single “corridor”, which will be part of the case for a single financing “bucket” for both bridges. We know that public opinion is changing concerning the source and use of revenue for transportation, generally (whether light rail, bus, bike/ped or automobiles). Great headline, but there's a lot more to this story … and much to be decided in the years ahead.

  • Edog

    I-80 in PA has to be one of the worst effing roads on earth. It is constantly under construction, and always in poor shape!

  • eddiew

    Representative Eddy: toll revenue is not subject to the 18th amendment; it could be spent on transit; the legislature may restrict their use of it. to date, the Legislature must spend all its toll revenue on its highway dreams. that may change in the future.

    for goodness' sake, spedning toll revenue on transit is a good concept. in public finance economics, there is the concept of the second best. applied to tolling, it would answer the left wing populist argument against tolling that terms them Lexus lanes. spending some toll revenue on improved transit helps those in the corridor who cannot afford the tolls. of course, the poorest travelers do not even have cars.

    for the LaHood statement, the feds and state could agree that the two floating briges are a single corridor. under Bush, the FTA was encouraging tolling.

    if the state wanted to spend toll revenue on I-90, they could fund transit service and center access at Issaquah (SR-900).

    to date, the main focus of the legislature re tolls has been the revenue. I hope they shift the main focus to demand management. if all limited access highways were tolled dynamically, all modes would benefit.

  • Mike Lindblom

    Last year, the Federal Highway Administration opined that it would be okay for Washington state to apply I-90 tolls to the 520 project (see story below). I'm skeptical that the Pennsylvania issue affects 520, but it's a question worth checking out.

    http://seattletimes.nwsource.com/html/localnews…

    Mike Lindblom, Seattle Times.