Eying traffic decline on Tacoma Narrows Bridge, state commission floats possible toll hikes (original) (raw)

GIG HARBOR – As traffic and toll revenues on the Tacoma Narrows Bridge have declined in recent months, the state commission that sets toll rates is raising the possibility that the cost to cross the bridge may increase.

With fewer people driving because of the coronavirus outbreak, the state’s Department of Transportation reported in a presentation last month that revenues at the state’s five tolling facilities were 20.7millionbelowwhathadbeenforecastedforMarchandApril.WSDOTreportedthattheTacomaNarrowsBridgealonewasdownbyroughly900,000transactionscomparedwithprojectionsforthetwo−monthperiod,whichtranslatedto20.7 million below what had been forecasted for March and April. WSDOT reported that the Tacoma Narrows Bridge alone was down by roughly 900,000 transactions compared with projections for the two-month period, which translated to 20.7millionbelowwhathadbeenforecastedforMarchandApril.WSDOTreportedthattheTacomaNarrowsBridgealonewasdownbyroughly900,000transactionscomparedwithprojectionsforthetwo−monthperiod,whichtranslatedto4.6 million in lost revenue.

Toll revenue helps to pay for the newer eastbound span, which opened in 2007. The bridge cost 786milliontocomplete,includingabout786 million to complete, including about 786milliontocomplete,includingabout57.6 million of sales tax. The total financing cost for the structure is $1.5 billion.

"The question is how quick will we rebound and will we rebound to where we were or does it stop short of where we were?" said Reema Griffith, executive director of the state’s Transportation Commission, the body that sets toll and fare rates.

Currently, tolling is projected to run through 2032, when the structure would finally be paid off. The project was financed with an escalating debt structure, meaning the annual sum that has to be paid back for construction increases each year, which resulted in corresponding toll hikes.

State legislators in 2018 signed off on a plan to loan up to $85 million over the life of the bridge tolling with the intent of staving off toll hikes, save a 25-cent maximum increase, which is planned for next year.

But, said Griffith, “That was before. Now the question is will that loan agreement stand? Are (legislators) going to come with the same amounts of dollars they committed to at a different time when everything was great? If not, then we need to figure out what they can do, if anything, then the domino of what are the toll payers going to have to come up with?”

State data shows traffic at the bridge dropped off significantly during the month of March and bottomed out late that month. Since then, traffic has begun to slowly tick upward again as the state has begun to reopen.

A commission policy requires that the Tacoma Narrows Bridge account maintain an average minimum fund balance of $10 million over a rolling three-month period, which helps to maintain a buffer for unexpected revenue loss. Commission staff brought the status of the fund to commissioners as an information item last month, reporting that it was still in compliance but was being depleted as traffic declined.

Upcoming revenue forecasts this month and later this year will help to guide what happens next, but the commission is raising at least the possibility of higher tolls. Griffith said the commission is hoping to avoid turning to toll payers with higher rates and is waiting to see what lawmakers do.

“Everybody’s got their hand out and they’re going to have a lot of demands that as a body they’re going to have to figure out, what they can address and how,” she said.

As with state ferry fares, higher rates can only go so far in raising revenue before people begin to change their behavior, Griffith noted.

“Tolling isn’t an endless panacea of possibilities, it can only go to a point and then its effectiveness stops in terms of raising more revenue,” she said.

Simply, options include getting money from the Legislature and raising toll rates, Griffith said. It’s also possible federal funds could become available, said Carl See, a financial analyst with the commission.

With gas tax and other revenues lawmakers can provide down, funds “will be stretched very thin and they may think again about whether they carry through on their intent to maintain these loans at the expected amounts,” See said.

Currently, crossing the bridge in a car or another two-axle vehicle costs 5withaGoodtoGo!passor5 with a Good to Go! pass or 5withaGoodtoGo!passor6 cash at the tollbooth.

“We recognize any increase is a significant burden for toll payers and that’s especially the case if we’re in a prolonged economic recession as a result of COVID or if we’re still dealing with COVID,” See said. “That’s certainly what we have to consider, but at the same time, we need to meet our financial commitments. We’ll be working closely with the Legislature and others to identify what that need will be.”

Nathan Pilling is a reporter covering Bainbridge Island, North Kitsap and Washington State Ferries for the Kitsap Sun. He can be reached at 360-792-5242, nathan.pilling@kitsapsun.com or on Twitter at @KSNatePilling.

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