And, that’s a wrap!
The 2025 Legislative session is officially over, with lawmakers adopting 2025-2027 operating, capital, and transportation budgets on Sunday, April 27th. The bills will now make their way to Governor Ferguson’s desk for signature.
The 2025 session was marred with budget deficits that created stress, unease, and much handwringing. Democrats, Republicans, and the Governor often clashed with how to balance budgets, with Democrats pushing new revenues, and Republicans and the Governor urging fiscal constraint.
In the end, the Legislature settled on a mix of both spending cuts and revenue increases.
For the transportation budget, lawmakers raised the gas tax by 6 cents; levied new weight fees on trucks and heavier passenger vehicles; raised taxes on rental cars, luxury vehicles and luxury aircraft; and implemented a tire disposal fee, in addition to myriad other taxes and fees.
It was not easy getting there. The final weeks of the session were beset with heartbreak, with the unexpected passing of Senator Bill Ramos, and the passing of former Speaker of the House, Frank Chopp. And, one day before adjournment, a sitting legislator lost his wife. Speaking to reporters about the session, House Majority Leader Joe Fitzgibbon, D-West Seattle said, “I’ll say certainly today, it feels like the toughest one that I’ve been through."
Through all of the difficulties, lawmakers were able to finish on time, sending the final operating, capital and transportation budgets to Governor Ferguson for his signature.
How did things go for the County Road Administration Board?
For us, it was a mixed bag.
We are thrilled the Legislature establishes a new local road grant program at the agency; however, $21 million in funding for the new program is delayed until 2027-2029. We are extremely grateful for the hard work so many put into efforts to stand up this new program. From HB 1098 Sponsor Sam Low, to transportation chairs Senator Marko Liias and Representative Jake Fey, to the County Road Administration Board of Directors and staff, none of this would have been possible without the hard work and dedication that was put into making this program a reality.
Other results were mixed:
- Bridge Load Rating Grant - In December, we shared with you that millions of federal dollars Washington State receives from FHWA for bridge rehabilitation and replacement are at risk. We submitted a decision package in September for one-time grant funding, offering to manage oversight and reimbursements to allow counties and cities to hit the ground running on their ratings. Unfortunately, the Legislature's budget directed that $5 million in funds be taken from CRAB’s two primary grant programs, the Rural Arterial Program (RAP) and the County Arterial Preservation Program (CAPP), to pay for the load ratings. These two grant programs are already stretched thin by need three to four times higher than they can support and declining motor vehicle fuel tax revenues.
- Federal Fund Facilitation Program - Our Federal Fund Facilitation Program, created to provide the technical assistance needed by local governments and tribes to navigate the federal system, pursue grant opportunities, and maximize the federal investment made to the transportation infrastructure of Washington State, has been eliminated. We were unsuccessful in hiring new staff to get the pilot program up in running during the current biennium.
- Motor Vehicle Fuel Tax Allocation Study - $300,000 was budgeted for this study, which we will be working on in partnership with the Washington State Association of County Engineers.
- A New IT Division Position - $308,000 was requested for a new FTE Data Development Specialist on our staff but was not included in the final budget.
Additionally, the state employee furloughs originally proposed by Governor Ferguson and included in the Senate’s first operating budget proposal were not enacted. The counties and our partner agency, the Transportation Improvement Board, also saw needed increases in their road and general funds. A summary table can be found below:
As we look to the interim we will begin developing rules and plans for our new local road grant program, with input from counties, and continue to work with our partners to prioritize the preservation, maintenance and safety of our road system.
Please reach out with questions, concerns, and feedback. We appreciate your continued support and look forward to seeing many of you at our upcoming project tour, conference and trainings!
