State ferries may make major cuts

With the state in a financial crisis, the ferry system is not immune, and major cuts in service may be in store.

A smaller fleet, a halt to remodeling of terminals, and less service on some runs are possibilities, according to a new draft, long-range plan released by the ferry system.

Formed in 1951, Washington State Ferries is the largest ferry system in the country. It carries more than 23 million passengers a year, and demand is expected to grow as more people move to ferry-dependent counties.

But the state ferry system is also among the nation's oldest, and many boats need to be replaced, and terminals upgraded. That may change under the new plan.

"This report clearly has different visions," said David Mosely, head of the state ferry system. "How it goes is a matter of discussion and debate at the Legislature."

The new long-range plan, the first since the previous plan was adopted in 1999, looks at ferry planning through 2030.

It's a much different picture than the 1999 plan. That document was written before Initiative 695 passed in November of that year, carving a huge hole in the ferry budget. The ferry system lost 20 percent of its operating budget and 75 percent of its capital budget under the initiative.

Since 2000, fares have increased between 37 and 122 percent, depending on the route. Today, the ferry operation is 70 percent supported by fares, up from 60 percent in 2000.

There's been a freeze on fare increases: Ticket prices were last increased in 2007, by 2.5 percent.

The new draft plan looks at two possible scenarios moving forward. One way the state could go — Plan A — is essentially status quo. The system would continue with plans to build 10 new ferries and put two boats on the Port Townsend-Keystone route.

Plan B, however, calls for major service cuts.

"We've teed up the issue for the Legislature," said Moseley. "We clarified what the service impacts would be and revenue shortfalls would be. I expect a lively discussion at the Legislature."

Cuts proposed under Plan B include:

• The Anacortes-Sidney, B.C., service would be eliminated next year. This already was proposed in Gov. Christine Gregoire's new budget.

• The Port Townsend-Keystone run would have just one ferry, also recommended by the governor. When bids to build two new boats for the run came in far above the state's estimate, a contract was awarded for just one boat.

• Fares would increase 2.5 percent each year and eventually would pay the system's entire operating costs.

• The Seattle-Bremerton run would be reduced to one boat year-round, and night service would be eliminated to Bremerton and Edmonds.

• The Vashon-Southworth-Fauntleroy service would be reduced to two boats, and extra summer weekend service to Mukilteo also would disappear.

• The state would purchase just five new ferries. Some terminal improvements would be eliminated. Despite elaborate plans, there would be no upgrade of Seattle's Colman Dock.

In draft Plan A, the status-quo version, the state would need an additional $3.5 billion for the capital program. Under Plan B the need would be lower, $2.1 billion for capital projects, such as building new ferries.

Plan B also envisions local governments taking responsibility for parts of the marine-transportation system. King County, for example, has taken over the Vashon Island passenger-only ferry.

The new draft plan says ferry ridership is expected to grow by 36 percent between 2006 and 2030, with growth returning to the high level it had in 1999 by 2015. The largest increases are predicted on the Fauntleroy-Southworth, Port Townsend-Keystone and San Juan inter-island routes.

The report also suggests:

• The ferry system consider using a reservation system but not charge extra for it. Reservations were used this year on the Port Townsend run.

• Ferries use a fuel surcharge that would automatically adjust fares to reflect increases in fuel prices.

• Ferries already have a seasonal surcharge, but more could be charged in July and August.

• Ferries could charge nonresidents more to ride.

• Congestion pricing could be imposed, charging more for peak-period travel.

The state will hold public hearings on the draft plan next month. A final plan will be released to the Legislature on Jan. 30.

Susan Gilmore: 206-464-2054