Your port-focused summary of Governor Inslee's 2021-23 budget

Your Washington Public Ports Association has spent the last day analyzing the Governor’s budget proposal released yesterday, December 17th. The budget proposal is long and complex, and we will continue to review and provide substantive information related to your port.

2021-23 Capital Budget

Governor Inslee’s Capital Budget for the 2021 – 2023 Biennium hits the bullseye. WPPA’s top legislative priorities are fully funded: the proposal seeks an additional $9 million for toxic cleanup grants above the amount requested by the Department of Ecology; the Community Economic Revitalization Board is fully funded; broadband funding is provided through the Public Works Board. The Stormwater Financial Assistance program is a relatively new tool ports can use to help pay for necessary infrastructure. Governor Inslee deserves a thank you for recognizing the importance of the work public ports do in Washington state.

The Governor’s Capital Budget includes:

MTCA Remedial Action Grant Program

The Governor’s Capital Budget proposal recommends $70.9 million to restore contaminated sites. The budget request supports projects at the ports of Bellingham, Anacortes, Skagit, Everett, Seattle and Tacoma.

Community Economic Revitalization Board Infrastructure Development

the Governor recommends $25 million for CERB to finance publicly owned economic development infrastructure improvements and attract new business activity. The program provides low-cost infrastructure financing and site-specific planning funds to local governments, special purpose districts and federally recognized Indian tribes to create private sector jobs.

Public Works Board Broadband Infrastructure

Governor Inslee proposes to continue the implementation of the broadband infrastructure program pursuant through the Public Works Board. The Board will collaborate with the Office of Broadband to deliver service to unserved homes and businesses in support of education, healthcare, public safety and job retention and creation. $45 million is requested for this purpose.

Stormwater Financial Assistance Program

To finance stormwater retrofit projects, the Governor recommends $75 million for projects that treat polluted stormwater to reduce toxics and other pollution in waterways and protect marine waters, estuaries, lakes, rivers and groundwater resources. Port districts are among the local governments eligible for these grants.

Clean Energy 5 - Investing in Washington's Clean Energy

Among several other clean energy priorities, the Governor directs $5 million for maritime electrification grants.

Energy Retrofits for Public Buildings Grants

Governor Inslee is seeking $52.5 million to fund the Energy Retrofits for Public Buildings Grant program, increasing the budget for these public sector energy conservation grants by a factor of 15. Port districts are eligible for this money along with state agencies, public higher education institutions, K-12 school districts, and tribal governments. Projects must be designed to improve the energy efficiency of public facilities.

Boating Facilities Program

The proposed budget provides $14.9 million for grants to acquire, develop and renovate boating facilities, including boat launches and ramps, transient moorage and upland boating support facilities. The Recreation and Conservation Office program is supported by the state gasoline tax revenue attributable to recreational boating.

Derelict Vessel Removal Program

The Derelict Vessel program would receive $4.5 million to remove high-priority derelict vessels and vessels of concern that present a risk to public safety and the health of marine and fresh waters.

Aquatic Lands Enhancement

The Governor recommends $9.1 million for projects located on or adjacent to state-owned aquatic lands throughout Washington. The program supports projects that: 1) re-establish natural, self-sustaining ecological functions of the waterfront; 2) provide or restore public access to the water; and 3) increase public awareness of aquatic lands.

Community Aviation Revitalization Loan Program

The Governor recommends extending the 2018 Community Aviation Revitalization Loan Program and the board that reviews applications and selects projects. The proposed budget also provides $5 million in funding for the program during the 2021-2023 biennium.

2021-23 Transportation Budget

Governor Inslee’s Transportation Budget for the 2021 – 2023 Biennium includes increased spending to fix fish passage barriers and significant investments in maintenance and preservation for state-owned facilities. A total of $724 million goes to address the federal injunction to fix fish barriers and $400 million is earmarked for preservation on the state’s highway system along with the state-owned PCC Rail System.

Outside of the Governor’s carbon proposal, The Climate Commitment Act, no new funding is contemplated in the transportation budget proposal. As a result, the budget defers $1 billion in existing projects in order to advance fish barrier removal and system preservation. The Governor intends to work with the legislature to identify specific projects which would be delayed as a result of this proposal.

Freight Investments

The Governor’s $400 million investments in preservation includes $10 million for the PCC Rail System. The budget also fully funds over $7 million in freight rail grants. The distribution of federal freight formula money is less clear with roughly half of the total $23 million distribution directed to highway preservation projects. The remainder of the investments will be awarded based on the outcome of a previous process, which failed to award the full 10% allowance for multimodal related projects. Finally, the Governor reinstates the Freight Mobility Strategic Investment Board’s authority to receive new project applications, review and award funding for future biennia. The moratorium has been in place since 2018.

Interim work to reform the Washington State Freight Advisory Committee (WAFAC) has resulted in a proviso for WSDOT to reform the WAFAC consistent with federal law and the report formulated following six meetings convened during 2020. WPPA continues to have concerns about the limited consultative role the committee would have particularly related to the projects and programs funded with the state’s federal freight formula allocation.

Finally, the Governor’s budget proposes $1.5 million for a truck parking study.

Project Specific Analysis

The Governor’s budget provides specific allocations on a project-by-project basis and program-by-program basis. Our analysis of changes to specific projects continues. We will provide more details in the weeks to come. Follow this link to check out the status of your own projects. https://ofm.wa.gov/sites/default/files/public/budget/statebudget/2021-23biennial/transpo/2021-23TranspoProjectsG01.pdf