(The Center Square) – The Washington State Department of Transportation will have a total funding deficit of $900 million during the 2027-2029 biennium, according to a Washington State Senate committee, citing higher costs for capital projects, lower gasoline tax revenues and less than expected federal grants for Move Ahead Washington transportation package projects, among other reasons.

For the current two-year budget under the 2024 supplemental budget, the WSOT’s budget and revenues are balanced at $14.55 billion. However, at current funding levels, numerous accounts will be in the red, including:

$7.4 million in the State Patrol Highway account, $137 million in the Puget Sound Ferry Operations account, $74.7 million in the Motor Vehicles account, $556 million in the Move Ahead Washington account, $73.8 million in the Capital Vessel Replacement account

Haley Gamble, budget coordinator for the Senate Transportation Committee, warned committee members at its Friday meeting: “Although we are only looking at a six-year period, I can tell you that the red numbers are increasing in subsequent years. The financial outlook is getting worse and worse in the future.”

One of the ongoing problems is that “revenues have never really recovered from the COVID-related slump.”

Gamble added that an upcoming update to the gasoline tax revenue forecast, which will show lower than expected amounts, will also impact funding for state agencies.

“The budget was recently balanced by some significant transfers from the operating budget,” she said. “Whether that will continue or whether those transfers will be adjusted, we don’t know.”

A major factor in the financial impact was assumptions that Move Ahead Washington would receive $650 million in competitive federal funds. However, Gamble said, “We have not seen those federal funds come in at the levels anticipated.”

Another issue she cited is the increase in bidding for contracts put out to tender by WSDOT. “We don’t know if that will continue given the changing economic climate, but that’s another unknown for 2025.”

Although the transportation budget does not have to limit spending to the state’s economic forecast as the operating budget does, Gamble speculated, “I would imagine that if the budget was not balanced for at least a two-year period, the OFM (Office of Financial Management) would not allow you to proceed. If they can’t guarantee they can pay the contract, it’s very difficult for them to sign contracts.”