Initiative 976 Passes, Washington Transit Agencies Brace For Cuts

SEATTLE, WA — Washington voters have approved Initiative 976, a ballot measure that sought to reduce car tabs while slashing billions from state transportation funds. As of Wednesday's ballot count, I-976 maintained a ten-point lead statewide. Voters in King County were rejecting the measure, by 56.7 percent, while voters in Pierce County were soundly in favor, with 67.25 percent voting to approve. Just five Washington counties had a majority voting against the measure as of Wednesday's ballot drop.

I-976 bars cities from charging additional car tab fees without voter approval, requires vehicle values to be calculated based on the Kelley Blue Book, and caps tabs for many vehicles at $30. As a result, the state expects to lose several billion dollars in transportation funding over the next several years, and billions more in the decades to follow. Most components of the initiative will go into effect December 5th.

The shortfall is likely to slow expansion of the region's light rail system in Seattle, Everett, and Tacoma. Voters approved ST3, a $54 billion transportation package to build more light rail, in 2016, but higher car tabs calculated via a controversial formula sparked blowback from drivers and lawmakers.

Sound Transit Board Chair, and Redmond Mayor, John Marchione released a statement Wednesday morning.

“At the next meeting of the full Sound Transit Board on Nov. 21 we will begin the process of responding to I-976. The Board will hear presentations from the agency’s finance staff as well as our general counsel. The Board will consider Sound Transit’s obligations to taxpayers who want their motor vehicle excise taxes reduced, as well as how to realize voters’ earlier direction to dramatically expand high capacity transit throughout the Puget Sound region.”

The Washington State Department of Transportation said it could lose more than $450 million in funding by 2021. Wednesday night, Governor Jay Inslee directed WSDOT to postpone all planned projects and halt non-essential spending while state leaders review the measure's potential impact.

The Associated Press reports more than 60 Washington cities use car tab fees to pay for roadwork, buses and maintenance. In King County, car tabs help fund the metro bus system, which may have to reduce service on several routes in Seattle, Renton, Burien, Shoreline, Skyway, Tukwila, and White Center. King County Metro projected Seattle would have to come up with $36 million in funding annually to keep things running without cuts.

Wednesday morning, King County Executive Dow Constantine announced his office asked King County Prosecutor Dan Satterberg to prepare a lawsuit, challenging the constitutionality of I-976.

"The passage of I-976 underscores the ongoing need for comprehensive state tax reform, but for in the short term we must clean up another mess that Tim Eyman has created for our state, our region, and our economy. There will be many discussions in the weeks and months ahead to determine how to overcome the loss of safety and mobility caused by this irresponsible initiative, but the impact of I-976 to transportation is – in a word – devastating."

Seattle Mayor Jenny Durkan scheduled a press conference with City Attorney Pete Holmes on Thursday.