By Manuel Valdes
The Associated Press
OLYMPIA — Gov. Chris Gregoire wants to transform the ferry system from a state-only operation to a regional ferry district with state subsidies, giving local counties taxing and operational power.
In an announcement today, Gregoire said the change is needed to help bring revenue to the ferry system, which has been bleeding money for the last decade. In 1999, voters approved Initiative 695, which limited the state’s motor vehicle excise tax.
Gregoire said the ferry system has lost more than $1.2 billion in revenue since then.
“A patchwork approach to funding is not feasible. Without major reform, ferry customers and ferry-dependent communities will face continued uncertainty,” her proposal said.
Gregoire’s plan calls for a new ferry taxing district that includes all seven Western Washington counties [including Jefferson and Clallam] served by the nation’s largest ferry system. District board members would be elected in those areas, and some would be appointed by the governor.
The plan also calls for a state subsidy, but the amount is not yet known.
The proposed plan was born of recommendations from the Passenger Vessel Association, a national organization of passenger vessel owners and operators. The group studied the state’s ferry system and compared it to six systems from the U.S. and Canada — systems that included privately owned, publicly owned and mixtures of the two.
Washington state’s ferry system is the largest in the nation, making more than 180,000 trips, carrying 23 million passengers and 10 million vehicles annually, the governor’s office said.
But it has long been in search of more stable financing. After losing car-tab revenue, lawmakers have transferred millions of dollars form other areas. The system has also cut services and raised fares.
Gregoire says the ferry system still faces a roughly $900 million shortfall over the next decade.
Gregoire’s plans would require action by the state Legislature, which is scheduled to convene its 105-day regular session next Monday.
