Gas-tax initiative would defer bonds
OLYMPIA – The state will defer sales of $70 million in transportation bonds guaranteed by the new gas tax increase if an initiative seeking to overturn that hike makes the ballot, as appears likely.
The State Finance Committee passed a resolution Tuesday to start selling bonds on Aug. 16 for $322 million of transportation projects. Of that total, however, the $70 million guaranteed by the increase that took effect July 1 will be held up until the secretary of state’s office verifies whether the initiative campaign has sufficient valid signatures. Roughly 225,000 are required.
If the initiative makes the ballot, the state will continue to defer issuing that portion of the bonds until after the November election.
“It’s the treasurer’s policy that any time there is a cloud over a bond issue, we don’t issue the bonds,” said Barton Potter, spokesman for state Treasurer Michael Murphy. “So we wouldn’t issue that portion of the bond, that $70 million, that’s based on the new gas tax revenue.”
On Friday, foes of the state’s gas tax increase turned in the last of more than 420,000 signatures, nearly double the number needed to qualify Initiative 912 for the November ballot.
“We don’t have any expectation that the initiative won’t get on the ballot,” Potter said.
The first 3 cents of the gas tax increase went into effect July 1 on top of the state’s existing 28-cent-a-gallon levy. The rest is scheduled to be phased in over the next few years: three cents in 2006, two cents in 2007 and 1.5 cents in 2008.
An ambitious $8.5 billion, 16-year transportation program would help finance “mega-projects” like replacing the rickety Alaskan Way Viaduct in Seattle and building a new state Route 520 bridge across Lake Washington. It also would provide cash for hundreds of highway and bridge projects, rail, ferries and other improvements.
Tolls, local taxes and weight fees on cars, light trucks and SUVs also are planned as the state whittles away at a $50 billion backlog of projects.