OLYMPIA — The Senate released its 2025-27 transportation budget, which includes two bipartisan proposals charting different funding paths for the state’s transportation system.

One proposal postpones projects and reduces state agency operating costs to close the $1 billion shortfall in the 2025-2027 budget, while the other includes a revenue and spending package to account for the budget gap and keep Washington moving ahead.

The all-cuts proposal reduces the capital project budget by $941 million and state agency operating costs by $156 million. These reductions would delay dozens of construction projects like the North Spokane Corridor and new hybrid electric ferries, as well as affect operations at the Washington State Department of Transportation, state patrol, and Department of Licensing.

“Responsible spending is our top priority, and we’re always looking for ways to maximize the transportation dollars we already get. But we can’t simply cut our way out of the budget crisis we’re in,” said Sen. Marko Liias (D-Edmonds), chair of the Senate Transportation Committee. “A barebones, all-cuts budget is unacceptable when we’ve made promises to Washingtonians. We need to finish projects, preserve our infrastructure, and make our roads safer — Democrats and Republicans agree we can only do that if our budget includes new revenue.”

“This Senate transportation budget proposal was developed with collaboration and compromise from both sides. Chairman Liias welcomed our input and kept his word that this would be a truly bipartisan budget. There are parts of it that our side doesn’t like, and there are parts that the Democrats don’t like. But we worked hard and worked together to create a plan that we hope will allow our state to finish long-awaited highway projects, improve safety on our roads and highways, and get our ferry system back on track,” said Sen. Curtis King (R-Yakima), the ranking Republican on the Senate Transportation Committee.

The bipartisan transportation revenue package would generate about $10.2 billion over six years to ensure the state can complete promised projects, preserve and maintain infrastructure, and increase road safety.

The package includes shifting 0.3% of the state sales tax, totaling about $800 million annually, to the transportation budget starting in 2027. It also includes a proposal to generate $500 million per year in additional revenue, part of which would be bonded to fund major projects. About two-thirds of this revenue would come from two streams: vehicle registration fee increases totaling $50 for electric cars and $25 for hybrid cars, as well as a 6-cents-a-gallon fuel-tax increase. Both increases to registration fees and the fuel tax would be indexed by 2% annually through 2031.

Other proposed revenue streams include a 10% luxury-vehicle tax on the portion of the sale price that’s more than $100,000, a $1-per-attendee assessment on venues that hold large events with more than 20,000 attendees, a $10 assessment on all traffic infractions, and a $125 fine for speeding in work zones.

In addition to new revenue, the proposal includes several reforms to help the state streamline projects and get projects done faster. Reforms include restructuring the Transportation Commission, establishing a program to expedite permit approvals for fish barrier projects, and creating a statutory framework for the state to leverage public-private partnerships for transportation projects.

A $9.2 billion spending plan details how the state will invest these funds over the next six years. While the plan restores most of the reductions proposed in the all-cuts budget, it maintains some spending cuts like staffing reductions at the Department of Licensing.

A priority of the spending proposal is ensuring the state does not have to delay key capital projects planned or already in progress statewide, such as the construction of the North Spokane Corridor and new ferries and improvements to State Route 18. The proposal also reserves $1.1 billion across six years to ensure the state can pay for future project cost increases and phases of previously funded construction projects.

The spending proposal further builds on the state’s commitment to preserve and maintain ailing bridges, roads, and other infrastructure. Washington currently funds about 46% of the highway preservation need, and the proposal would increase that to 86% by 2031 through a $2 billion investment in state and local preservation and maintenance.

Increasing transportation safety is another key commitment of the proposal, especially considering Washington’s traffic safety crisis. Traffic deaths are at a 33-year high, and $450 million is dedicated to improving highway safety. The proposal also invests $700 million in state and local safety projects, $366 million for active transportation projects, and $26 million to continue matching funds for projects to reduce lane departures in rural areas and improve railroad crossings.

The four bills comprising the transportation budget – SBs 5161, 5160, 5801 and 5800 – will be heard in committee 4 p.m. Tuesday.