Bad economy won't stop massive road projects

OLYMPIA — Legislative leaders may have a way to build support for replacing the deteriorating Alaskan Way Viaduct and Highway 520 bridge: Call it a jobs package.

"There's no question it's a jobs bill," said Sen. Mary Margaret Haugen, D-Camano Island, chair of the Senate Transportation Committee. "If you want to create jobs, you build something. It's a no-brainer."

There will be a lot more talk like that in the coming weeks and months as the Legislature grapples with two essential transportation projects that cost billions of dollars — at a time when a recession appears unavoidable and the state operating budget has a $5 billion hole.

That's the shortfall lawmakers will have to close when they start crafting a new two-year budget in January. It will mean deep and likely agonizing cuts in state spending — but not when it comes to transportation projects.

Transportation has a separate budget with its own source of revenue — primarily the gasoline tax, which is more stable than the sales tax.

"We're not impacted by the shortfall in the operating budget," said Rep. Judy Clibborn, D-Mercer Island, chair of the House Transportation Committee. "Our projects are moving forward as scheduled."

The state released new cost estimates Thursday for the viaduct and 520 floating bridge. Viaduct options range in cost from $800 million to build a surface boulevard along the central waterfront to $3.5 billion for a bored tunnel under Western Avenue. Those costs don't include more than $1 billion already committed to construction on the north and south ends.

The Highway 520 project is now expected to cost about $4.6 billion to $6.6 billion, depending on how a Seattle interchange is designed.

Both highways are nearing the end of their design life, and could fail in a major earthquake. The Highway 520 floating bridge could sink in a severe windstorm. For years, politicians and the public have argued over how to move people through both corridors without destroying the neighborhoods alongside.

Legislative leaders said they're confident they will now move ahead.

In some ways, the economic downturn helps sell the projects, lawmakers said.

"We've been talking about it as the economic stimulus that will help the operating budget if we can keep our projects moving," Clibborn said.

An oversight panel that includes Gov. Christine Gregoire, Seattle Mayor Greg Nickels, King County Executive Ron Sims and some legislators is expected to narrow down the viaduct options in December.

Sims is supporting a "surface-transit" option that relies on buses, streetcars, road improvements and changes in commute patterns, instead of a new highway. Nickels once backed a tunnel, but warmed to a surface option after city voters in 2007 failed to support either a four-lane tunnel or a six-lane elevated highway.

Gregoire favored a new elevated highway early last year, but has since said she is open to other options.

Clibborn and Haugen said they expect to the Legislature to move forward with building pontoons for a new Highway 520 bridge as well as work on the east side of the highway. But a decision on work on the west side of the project may be pushed back.

Clibborn said she also expects the Legislature to authorize tolling the Highway 520 bridge to help pay for the project. She wants tolling to start on the existing bridge in 2010.

Despite the recession, gas taxes are still growing somewhat, so there doesn't appear to be a threat to that part of the viaduct and 520 budgets.

Short term, state gas-tax income is expected to grow from $2.5 billion in 2007-08 to $2.7 billion in 2009-11, said Doug Vaughn, director of budget and financial analysis for the state Department of Transportation. Price fluctuations at the pump this year are having minimal effect, he said.

But long term, a recession means less trucking and diesel use, while cars will become more fuel-efficient. Gas-tax growth is expected to be flat in 2011, followed by small yearly increases ranging from 1.3 percent to 2.2 percent.

Times staff reporter Susan Gilmore contributed to this report.