State treasurer pushes tolls on I-90 and 520 bridges

State Treasurer Mike Murphy says that tolls will likely be needed on both Lake Washington floating bridges to help pay for a new six-lane Evergreen Point Floating Bridge.

Previous financing discussions have revolved around introducing a toll only on the new bridge. But Murphy said today that a toll will be necessary on Interstate 90 as well — unless the state comes up with more money to pay for the new bridge.

Murphy said he will not issue bonds for the new bridge unless he's confident that money can be repaid.

"We have this real simple rule around here: When we borrow money, we pay it back, and we pay it back on time," he said.

Murphy said he agrees with a recent report produced independently for the state Department of Transportation. The 84-page report concludes that making drivers pay a toll only on the 520 would result in a 31 percent to 33 percent financing shortfall.

The report is based on the assumption that a new six-lane bridge, coupled with improvements to I-90, will cost $4.4 billion. But only $1.7 billion in financing has been identified, the report states, including $1.1 billion from a regional transportation plan yet to be approved by voters. Tolls would be used to fund bonds for the remaining $2.7 billion.

Murphy said he believes tolls should be introduced on both existing bridges "as soon as possible" — even before the new 520 bridge is complete.

"I don't get cash flow until tolls come in, and otherwise we are paying interest on interest," Murphy said.

Murphy reasoned that introducing a toll only on 520 would create problems by diverting about 30 percent to 50 percent of traffic onto the other floating bridge.

"Then we get a parking-lot scenario on 90, and a financial problem on 520," he said.

The report notes that special federal permission would be needed to introduce tolls on I-90, because federal law generally prohibits tolling on interstate highways.

The report recommends the state set up an independent tolling agency to set tolls — an agency that could presumably expand its purview over time.

"The ability to independently set (and raise) toll rates is critical to the creditworthiness of the project, particularly if toll revenues are expected to repay debt," states the report. "Given its essentiality and feasibility, the 520 project could provide an ideal foundation for a statewide 'system' of toll facilities."

Murphy said he remains reluctant at this point to put a ballpark figure on how much drivers could expect to pay on the bridges, because any number he comes up with is likely to be viewed as final. But he did say any tolls would likely remain modest until a new bridge is complete, at which time they would rise.

House Transportation Chairwoman Judy Clibborn, D-Mercer Island, said she thinks Murphy is premature with his analysis, because the state is still working through its financing plan. She said everyone in Olympia believes the state will come up with more money for 520.

Clibborn added she believes there should be tolls for "hot lanes" on I-90 — high occupancy lanes that single drivers can use for a fee — but that the state should look for ways to avoid tolls for general purpose I-90 lanes.

She said that the analysis she's seen indicates drivers will continue to use 520 even if it's the only Lake Washington bridge with a toll, because they won't want to navigate other busy highways like Interstate 405 to avoid the toll.

Jennifer Ziegler, the transportation policy advisor for Gov. Chris Gregoire, said Murphy's comments and the report provide another tool for the Legislature to devise a 520 financing plan. Ziegler said Gregoire has told lawmakers they need to find more money for the project.

Nick Perry: 206-515-5639 or nperry@seattletimes.com