San Juan County Council Member Richard Fralick spoke to the Eastsound Planning Review Committee (EPRC) this afternoon, summarizing Governor Chris Gregoire’s announcement earlier today regarding the state-fun ferry system.
At the January 6, meeting, Fralick told the committee and some two dozen members of the public that the Governor said the state “doesn’t have the money to patch the system together,” and proposed a Puget Sound Ferry District to take over operation of ferries. The taxing district could obtain property or retail taxes in King, Pierce, Jefferson, Island, Kitsap, Mason, Skagit, Snohomish, and San Juan Counties.
The state would continue to fund core services, Fralick reported Gregoire as saying, although Fralick said it has proven difficult “to get a definition of core service.”
There “could be serious implications for ferry service,” Fralick said, with a $900 million deficit in the ferry budget over the next 10 years: a $200 million deficit for operations and $700 million for capital expenses.
“The ferries are our highways,” Fralick said, and added that the bulk of funding a ferry taxing district would be coming from “downsound. Our 12-16 thousand voters will be a mere pittance compared to King and Pierce counties.”
The state has long struggled to identify a stable funding source, and Fralick said the Governor suggested a three cents per gallon statewide additional gasoline tax to provide for capital and operations budgets for the ferries.
“It affects us deeply, and we’re allowed to give our two cents worth, but that’s about all. Decisions are made elsewhere,” Fralick said.
State law, however prevents the governor from raising taxes. If her taxing district plan is approved by the legislature, this session, it can be implemented in two years.
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This taxing district will make no sense unless they have the authority to purchase ferries, including used ones, from anywhere, and are not restricted to “made in Washington union rules.” These rules foreclosed upon us the opportunity to use the earlier TARP funds to help rebuild our fleet.