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2000 Ballot Issues Reports

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Transit and Traffic Congestion Relief. 0.2% Sales and Use Tax Funding

Summary

If approved by voters, Proposition No. 1 would authorize King County to impose an additional sales and use tax of not more than two-tenths of one percent. The proposed tax would be used for purposes of funding the operation, maintenance, and capital needs of King County Metro public transportation. These purposes include but are not limited to bus service, accessible services, vanpool programs, passenger facilities, park and ride facilities, and other congestion relief projects to preserve and enhance Metro Transit services.

Background

Metro Transit is funded by a 0.6% sales tax which generates approximately $240 million per year, fares and advertising revenue of  approximately $90 million, and federal capital grants which are typically $30-90 million. MVET funds would have provided $110 million this year, but are no longer available due to passage of I-695 in 1999. This is a loss of 20% of overall revenue, and 30% of operating revenue.

In response to I-695, the legislature provided modest one-time assistance monies, and authorized counties to ask voters for up to 0.3% of additional sales tax. The King County Council has placed a 0.2% sales tax increase for transit on the November ballot.

Consequences of failure

Metro has already cut staff positions 3% (saving $12 million per year), cut service 4% (135,000 hours), and is proposing a 25 cent fare increase (net $12 million). Additionally, Metro has been unable to redirect 80,000 hours of service from routes taken over by Sound Transit (anticipated in the RTA Plan approved by the voters). Metro expects to cut service a further 17%, close one of seven operating bases, and drop the regional smart card and other capital programs, including most park and ride lot expansions.

Arguments For and Against

For

  • More people are riding transit than ever, and lost MVET funds must be replaced.
  • Transit provides an effective peak hour alternative to building more highways (43% of peak trips to Seattle CBD, 16% to Bellevue CBD are in busses).
  • Transit provides mobility for the young, old, and disadvantaged.
  • Transit provides an alternative to the automobile, reduces congestion, and promotes walking.
  • Reduction in Metro service would exacerbate traffic congestion.
  • Improved transit service is assumed in suburban plans to reduce gridlock and sprawl.
  • There already are internal, county council, and state audits of Metro Transit; and there is legislative oversight from Olympia.
  • The Blue Ribbon Commission on Transportation will recommend improved performance standards and monitoring for all transportation agencies.

Against

  • The sales tax is already 8.6%, with 0.6% for Metro and 0.4 % for Sound Transit.
  • A fairer source of transit funding is needed (road user fee, mileage tax, or sales tax on gasoline).
  • The sales tax is regressive.
  • There is no sunset for the proposed tax.
  • If I-745 were to pass, 90% of these new funds would go to road building.
  • This would remove the need for the State to come up with a better funding package
  • Busses account for only 3-5% of trips in King County.
  • Performance audits of all transit and highway agencies, and better coordination of transportation investments and services is needed before any increase in taxes.
  • Cut waste and busses running empty before increasing taxes.

Recommendation

The Municipal League of King County recommends a “yes” vote on King County Proposition No. 1 (County 0.2% Sales Tax for Transit) to ensure that Harborview will be able to serve the community when most needed.

Justification

Metro Transit has one of the highest rider-ships per capita in the nation (100 million boardings per year for a population of 1.6 million), and demand is increasing. This is the county’s principal alternative to the automobile and hope for containing congestion. While use of the sales tax is regressive, voters should take this opportunity to continue Metro Transit’s growth, not curtail it.

For more information

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