State may defer on gas-tax bonds

OLYMPIA — The state will defer sales of $70 million in transportation bonds guaranteed by the new gas-tax increase if an initiative seeking to overturn that increase makes the ballot, as appears likely.

The State Finance Committee passed a resolution yesterday to start selling bonds on Aug. 16 for $322 million of transportation projects. Of that total, however, the $70 million guaranteed by the increase that took effect July 1 will be held up until the secretary of state's office verifies whether the initiative campaign has sufficient valid signatures. Roughly 225,000 are required.

If the initiative makes the ballot, the state will defer issuing that portion of the bonds until after the November election.

"It's the treasurer's policy that any time there is a cloud over a bond issue, we don't issue the bonds," said Barton Potter, spokesman for state Treasurer Michael Murphy. On Friday, foes of the state's gas-tax increase turned in the last of more than 420,000 signatures, nearly double the number needed to qualify Initiative 912 for the November ballot.