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Although the balance sheet looks great , economic uncertainty also remains great . State spending has escalated dramatically since the Great Recession . At some point , perhaps soon , such expenditure growth becomes unsustainable .
hitting the roads … and bridges
Transportation funding took a big hit during the pandemic as gas tax revenues dropped . While there ’ s been some recovery , it has been six years since lawmakers passed the Connecting Washington transportation package . A “ grand compromise ” to help promote a vote on new transportation funding fell victim to gubernatorial vetoes in the 2021 session .
“ Everyone generally supports infrastructure funding ,” says Mike Ennis , the AWB government affairs director who handles transportation issues . But , he says , the troubled economy , a 60-day session , and an election year make the prospects somewhat challenging for a new program to come together in 2022 .
The recently passed federal infrastructure bill and the flush state budget might buy lawmakers some time , with the heavy lifting deferred until 2023 . Still , some progress could be made in reforming transportation funding , moving some operating costs from the transportation budget to the operating budget .
Supply-chain issues and labor shortages - congestion points and a lack of truck drivers - have highlighted again the importance of reliable , safe , and efficient transportation systems , particularly in a trade-intensive state . In the coming session , anticipate progress in laying the groundwork for a comprehensive transportation package in 2023 .
keeping the energy up
Clean , low-cost , and reliable energy has long been a competitive advantage for Washington . In recent years , it ’ s become an eroding advantage , one which could slip further in 2022 under proposed legislation .
Peter Godlewski is the government affairs director who handles energy issues for AWB . He points out that upward pressure on energy prices has increased as a result of the passage of the Clean Energy Transformation Act in 2019 which aims to reduce greenhouse gases to zero for electrical generation .
In addition to that constant upward pressure on energy costs , the governor will be taking aim at phasing out natural gas . Last session , the proposal failed to gain traction , but is returning as four different pieces of legislation . While complex , the immediate effect is easy to understand : Transition from natural gas to electricity without sufficient extra capacity increases costs and adds pressure to an
“ There ’ s just so much money .”
— Emily Makings , senior analyst , Washington Research Council
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