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News from the Ferry Advisory Committee

Governor Proposes to Turn Ferry System Over to Regional Authority

January 7, 2011 --In a news conference on January 6, Governor Chris Gregoire said that she has concluded that the state government can’t afford to operate the ferry service at the level its users want, so she will ask the legislature to turn the nation’s largest ferry system over to a regional authority made up of all ferry-served Counties in Western Washington.

According to Gregoire’s plan, the state would continue to fund the system at approximately its current dollar level after the regional authority takes over the system in about two years. Along with the fleet of boats and the terminals, the authority will also inherit responsibility for a projected ten-year, $900 million operating and capital deficit.

The Governor blamed the huge deficit on the passage of initiative 695, which repealed the state motor vehicle excise tax in 1999. “Our ferry system would be financially sound today if we had not lost more than $1.2 billion in excise tax revenue over the past ten years.” She added, a three cent per gallon gasoline tax increase could produce the needed revenue, but she does not believe that could get past the legislature. Gregoire did not say how the regional authority would be governed, but she said it would have taxing authority and be independent of the Department of Transportation.

 The Governor was clear that she did not want the state to be in the ferry business any longer than necessary.

Immediate reaction by San Juan County Officials was guarded.

During a conference call with Washington State Ferries head David Moseley, San Juan County Council Member Howie Rosenfeld expressed concern over the “Balkanization” of the state transportation system, saying that the system can’t function efficiently if it is dealt with piece by piece.

Council Member Lovel Pratt questioned whether San Juan County, with its small population and total dependence on the ferry system, could be adequately represented in a regional authority that will be dominated by King and other populous Counties.

Current Council Chair Richard Fralick said he was concerned that as the state continued to feel a financial strain it could find it easy to cut back or even phase out its support of the ferry system.

San Juan County and the Ferry Advisory Committee has asked local residents to comment on the Governor’s proposal through the  FAC Feedback page.

Note: The Governor's office has issued a "policy brief" on her proposal. The brief is available here.