According to the state’s Office of Financial Management, I-695 would reduce motor vehicle taxes by up to $1.1 billion in the 1999-2001 biennium and $1.7 billion in the 2001-2003 biennium. About 47 percent of revenues from the motor vehicle excise tax go to state transportation programs, 29 percent to local transit districts and 24 percent to local governments for transportation, criminal justice and other purposes.

If the Legislature does not replace the MVET money lost as a result of I-695, King County Metro would lose up to $100 million of revenue per year (according to Metro) and Community Transit, up to $23 million per year (according to Community Transit). These numbers also assume loss of the local-transit option MVET and the local-option vehicle license fee.

Transit agencies might respond to this loss by reducing service—for example, cutting bus routes—increasing fares or both. If transit services were reduced because of loss of revenue, additional revenue losses would be expected because of ridership declines and reduced grant funding.

The UW currently receives services from agencies supported by the MVET. The university pays Metro and Community Transit about $8.5 million annually for transportation services, with fees based on the agencies’ respective fare structures. If these agencies lose MVET funding, they may choose to cut services to the university, they may increase fares or both. If they increase fares, the amount the university pays these agencies is likely to increase. The university pays for transit fees with revenue from the sales of UPASSes (50 percent), parking services (30 percent) and administrative sources (20 percent). To pay for any fee increases that might occur, the Regents might have to increase UPASS and parking fees.

Additional information about the potential impact of I-695 on transportation can be found at the following Web sites: http://www.metrokc.gov/kcdot/out/I-695meet.htm and http://www.wsdot.wa.gov/I-695/ .¶