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WSDOT 2021 - 23 Regular Budget Session 10% Agency Budget Reduction
WSDOT 2021 - 23 Regular Budget Session 10% Agency Budget Reduction
202123 Regular Budget Session
Policy Level AR 10% Agency Budget Reduction
Fiscal Summary
Fiscal Summary Fiscal Years Biennial Fiscal Years Biennial
Dollars in Thousands 2022 2023 202123 2024 2025 202325
Staffing
FTEs 0.0 0.0 0.0 0.0 0.0 0.0
Operating Expenditures
Fund 16J 1 ($430) ($435) ($865) ($430) ($435) ($865)
Fund 511 1 ($215) ($213) ($428) ($215) ($213) ($428)
Fund 535 1 ($279) ($276) ($555) ($279) ($276) ($555)
Fund 595 1 ($200) ($200) ($400) ($200) ($200) ($400)
Fund 20H 1 ($364,589) ($363,589) ($728,178) $0 $0 $0
Fund 108 1 ($24,122) ($24,122) ($48,244) $0 $0 $0
Fund 16J 1 ($214) ($215) ($429) $0 $0 $0
Fund 511 1 ($75) ($74) ($149) $0 $0 $0
Fund 535 1 ($465) ($464) ($929) $0 $0 $0
Fund 595 1 ($125) ($124) ($249) $0 $0 $0
Fund 109 1 ($37,000) ($38,000) ($75,000) $0 $0 $0
Total Expenditures ($427,714) ($427,712) ($855,426) ($1,124) ($1,124) ($2,248)
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The funding challenges we face to maintain these critical assets in a state of good repair were significantly increased due to the loss of revenue
Fund 16J 1 ($214) ($215) ($429) $0 $0 $0
Department of Transportation
Fund 511 1 ($75) ($74) ($149) $0 $0 $0
Policy Level ‐ AR ‐ 10% Agency Budget Reduction
Fund 535 1 ($465) ($464) ($929) $0 $0 $0
Fund 595 1 ($125) ($124) ($249) $0 $0 $0
Fund 109 1 ($37,000) ($38,000) ($75,000) $0 $0 $0
Total Expenditures ($427,714) ($427,712) ($855,426) ($1,124) ($1,124) ($2,248)
The funding challenges we face to maintain these critical assets in a state of good repair were significantly increased due to the loss of revenue
related to the passage of Initiative 976 and from people staying home in response to the COVID19 pandemic. The June Transportation
Revenue Forecast indicates a loss of transportation revenue of $4.5 billion over the next 10 years. However, the forecast also assumed a more
robust recovery from the pandemic than we are seeing playout. It is clear the cumulative effects on our transportation funding will last for several
biennia. In short, without additional new revenue, we will not be able to maintain and operate the system at current service levels and deliver all
the projects authorized by the legislature.
The decisions that will need to made are difficult, and we recognize that the level of cuts needed to balance our budget now and into the future
will impact our workforce and the communities we serve.
During the 201921 biennium in order to lessen impacts in 202123 to the extent possible, and recognize the realities of the COVID19
pandemic, the department has taken the following actions (onetime unless noted). Reductions in expenditures have been made and will continue
to be made via the allotment process in 201921.
Implemented the Governor’s directive to freeze hiring activities, personal services contracts, and major equipment purchases
Adjusted passenger rail service to reflect reduced ridership demands
Discontinued employee outofstate travel and reduced instate travel
Permanently closed some of the toll customer service walkin centers(ongoing)
Furloughed staff as required and rescinded many staff’s cost of living increases
Reduced ferry service temporarily in accordance with Washington State Ferries (WSF) COVID Response Service Plan.
The 202123 actions that are proposed in this decision package reflect:
1. Actions taken in 201921 that are expected to be ongoing through 202123 biennium;
2. Implementing transformational operational changes that help transition to the new normal and allow the agency to be more resilient,
nimble, and stronger employer of choice.
3. Actions necessary to achieve a 10% reduction, including:
Deferring capital expansion projects by adjusting capital spending plans to align with projected available revenue in the future;
and
implementing major service reductions to:
the Highway Maintenance program
Washington State Ferries operations
What alternatives did you explore and why was this option chosen?
The department’s priority for this proposal was to be mindful of the state’s current fiscal crisis while highlighting the need to stabilize the condition
of our critical infrastructure. Stable infrastructure is critical to longterm economic recovery and prosperity. In response to the Governor’s
directives to reduce expenditures, during the 201921 biennium the department deferred both permanent and temporary new hires, discontinued
outofstate travel, suspended new consultant contracts and task orders, deferred major equipment purchases, closed two toll customer service
walkin centers and many of our staff have taken furloughs and had their cost of living increases rescinded. In addition, Washington State Ferries
has reduced services consistent with its COVID Response Service Plan, which recognizes reduced ridership, lower revenue, interrupted vessel
maintenance, and workforce challenges. Despite these actions, even if these were sustained throughout the 202123 biennium, it is not enough to
balance the transportation budget. Without additional new revenue, WSDOT will not be able to maintain and operate the transportation system
at current service levels and deliver all the projects authorized by the legislature.
This proposal reflects reduction options to current programs and services in order to meet the required 10 percent reduction of the maintenance
has reduced services consistent with its COVID Response Service Plan, which recognizes reduced ridership, lower revenue, interrupted vessel
Department of Transportation
maintenance, and workforce challenges. Despite these actions, even if these were sustained throughout the 202123 biennium, it is not enough to
Policy Level ‐ AR ‐ 10% Agency Budget Reduction
balance the transportation budget. Without additional new revenue, WSDOT will not be able to maintain and operate the transportation system
at current service levels and deliver all the projects authorized by the legislature.
This proposal reflects reduction options to current programs and services in order to meet the required 10 percent reduction of the maintenance
level budget. The department intends to work with the Governor and Legislature to inform them of the impact of implementing these options.
Aside from the actions already taken, no other decisions have been made to implement changes to WSDOT’s current programs or service levels
at this time.
1. ACTIONS ALREADY TAKEN
The department proposes to continue the following actions already implemented during the 201921 biennium. The amounts below
reflect 202123 reductions.
a. Vendor staffing reductions $1.9 million: Permanent closure of Gig Harbor and Lynnwood toll walkin customer service
centers saves approximately $1.9 million in contracted staffing related costs. These spaces are leased by the toll vendor and are
not owned or leased by WSDOT. There are no anticipated toll facility related savings at this time.
b. Reduction in facility footprints, given increased telework $328,000: WSDOT is consolidating its downtown Seattle leased
spaces in the 201921 biennium. These are leased from private entities and are coming up for renewal in calendar year 2021. For
the Goldsmith building in Pioneer Square, downtown Seattle, and all WSDOT staff will vacate this leased facility estimated by or
before June, 2021.Staff relocating includes administrative staff for the Tolling Division, Urban Mobility, Active Transportation
staff, and some Public Transportation staff. Staff will move into the leased space at 2901 3rd Ave. in downtown Seattle near
Seattle Center.
Washington State Ferries (WSF) currently leases a portion of that building and recently signed a fiveyear lease renewal. WSF,
due to the longterm expectation of utilizing a greater level of telework than prepandemic levels, will consolidate its space to
allow room for the other WSDOT groups, and will share lease costs. This results in a net reduction for WSDOT in leased space
of over 23,000 square feet (21% of previous Goldsmith and 2901 space). 202123 budget savings for the toll division is
estimated at $328,000. The department is examining whether there are other potential savings in 202123, but move and
disposal/surplus costs need to be finalized, as well as which programs they affect. WSDOT will provide additional information
when it is available.
1. PROPOSED ADDITIONAL ACTIONS
The department proposes to pursue transformational changes to operations that will set the agency up for success in the future by
improving its resiliency, nimbleness and being a strong owner and employer of choice. Budget savings cannot yet be put on these items,
however, will continue to be evaluated by the department.
a. Maximize use of technology and telework options for WSDOT staff and consultants: Given the pandemic, WSDOT has had
a unique opportunity for administrative staff to use a majority telework model since late March. Daily telework for the vast majority of
administrative staff is expected through December of 2020 and will continue as directed for health reasons. This opportunity has
revealed that more supervisors and staff are willing and interested in continuing a greater level of telework (then prepandemic) in the
future. WSDOT has convened a Telework Transformation Team to examine what is needed to optimize the use of telework in a way
that makes WSDOT an employer of choice. WSDOT also anticipates that increased telework will have some onetime increases in
costs such as information technology, but will increase efficiency in some areas and potentially reduce costs in others. One area that
longterm cost reduction is possible is for leased space.
Sufficient staff are anticipated to continue teleworking in the future for WSDOT to actively pursue a reduction in overall square
footage that previously would not have been considered possible. WSDOT is looking at all of its leased facilities, and this will take
time to do thoughtfully with the involvement of the Office of Financial Management. Some of WSDOT’s leases, such as the ones for
the WSDOT headquarters buildings in Olympia and Tumwater, involve other state agencies like the Department of Enterprise
Services and the Department of Corrections. In the meantime, WSDOT is already pursuing lease consolidation in downtown Seattle
(see 1b above).
b. Aligning like activities and reengineering processes to maximize efficiencies: Teleworking during the pandemic has shown us
that we can effectively work remotely, which opens the possibility of staff providing services regardless of their geographic location.
This may enable a single person or team to meet the needs that exist throughout a region or statewide. These opportunities may exist Page: 3 of 6
for: planning, plan development, plan review (change plans, paving, striping), administrative activities, IT Services, work orders and
time to do thoughtfully with the involvement of the Office of Financial Management. Some of WSDOT’s leases, such as the ones for
Department of Transportation
the WSDOT headquarters buildings in Olympia and Tumwater, involve other state agencies like the Department of Enterprise
Policy Level ‐ AR ‐ 10% Agency Budget Reduction
Services and the Department of Corrections. In the meantime, WSDOT is already pursuing lease consolidation in downtown Seattle
(see 1b above).
b. Aligning like activities and reengineering processes to maximize efficiencies: Teleworking during the pandemic has shown us
that we can effectively work remotely, which opens the possibility of staff providing services regardless of their geographic location.
This may enable a single person or team to meet the needs that exist throughout a region or statewide. These opportunities may exist
for: planning, plan development, plan review (change plans, paving, striping), administrative activities, IT Services, work orders and
agreements, overnight Traffic Management Center (TMC) responses, goods/services purchasing and tracking, vendor payments,
employee reimbursements, some elements of maintenance and preservation activities (guard rail, bridge, roadway, lighting, striping,
patching), grants management, utility and developer reviews, and design services. Being more flexible with regional and organizational
boundaries will promote a more flexible workforce that can more efficiently meet the needs of the organization. Potential reductions to
appropriation authority or FTEs will be refined as the department continues to evaluate these options.
1. OTHER ACTIONS NECESSARY TO REACH A 10% REDUCTION
Given the magnitude of the funding challenges and the reality, that most of the department’s funding is for capital projects, highway
maintenance and ferries operations, the department must list these actions for consideration, even though they do not advance the
department’s strategic goals. These are only offered in lieu of reductions to preservation and safety.
a. Defer capital expansion projects to better align with the timing of forecasted available revenue $728 million. (This
would mean that approximately 18% of the maintenance level agency budget request for Highway Improvements in the 202123
biennium would be reduced.)
b. Reduce operational services $125 million
i. Highway Maintenance – reduce service levels, which will result in lower Maintenance Accountability Process scores across
the state. ($50 million or a 9 percent reduction from proposed 202123 maintenance level.)
ii. Washington State Ferries – eliminate international service; reduce service levels significantly, while retaining some level of
service on all domestic routes, eliminating the use of the oldest vessels first. ($75 million or a 14% reduction from proposed
202123 maintenance level. Note that this is an expenditure change only, and does not take into account revenue reductions
due to lower service levels.)
Other Assumptions:
Revenue impacts: there will be impacts on ferries revenues to the Puget Sound Construction AccountState from the $75 million reduction in
expenditures. Less ferry service means lower fare revenue. The amount of the revenue impact will depend on the actions taken. The other items
in this package are not expected to directly affect revenue.
Object splits: the object splits shown in this decision package were shown in a minimal number of objects for simplicity. Actual impacts across
objects would depend on the details of the decision making.
For deferrals of highway projects, the entire amount is assumed in object J, capital outlays, but may also affect labor costs (objects A and
B) and other objects.
For tolling costs, the reductions are to vendor costs and leases, affecting object E, goods and services.
For Highway Maintenance, the entire amount is assumed in object E, goods and services. Materials for maintenance are charged to
object E, but it is likely that reductions will also impact labor costs.
For ferries, the reduction of $75 million is split among objects based on the proportion of each object in the 201921 budget.
See the following table for the reductions by program. (Also attached)
Reduction Amount
Program
(in Thousands)
B Tolling 2,248
M Highway Maintenance & Operations 50,000
X Washington State Ferries 75,000
Total Operating 127,248
I Highway Improvements 728,178
Total Capital 728,178
Total Operating and Capital 855,426
Workforce Assumptions:
FTE impacts depend on many factors and more information will be provided, as it is available. WSDOT expects the service reductions and
capital project deferrals to make a significant reduction to FTEs.
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How is your proposal impacting equity in the state?
Total Capital 728,178
Department of Transportation
Total Operating and Capital 855,426
Policy Level ‐ AR ‐ 10% Agency Budget Reduction
Workforce Assumptions:
FTE impacts depend on many factors and more information will be provided, as it is available. WSDOT expects the service reductions and
capital project deferrals to make a significant reduction to FTEs.
Actions considered for this reduction attempted reducing impacts to preservation and safety, and considered equity across in the state to the
extent possible, given the size of the reduction needed.
Strategic framework
Portions of this reduction package, the items under 1 and 2, support the Governor’s Results Washington Goal of Efficient, Effective and
Accountable Government by making efficiencies and changes that reflect the new reality of teleworking, allowing less use of facility space and
more consolidation.
Enterprise risk management
The items under #3 in his decision package increase risks for the department that are identified as high on WSDOT’s Enterprise Risk
Management Risk Register (ERR). OFM requires agencies to summarize their greatest risks in their ERR, which is submitted with the biennial
agency budget request. This decision package, if enacted, would increase the risks of State of Good Repair, Demand of Large Projects, WSF
Workforce Development Vulnerabilities, and Aging Ferry Infrastructure, due to the reductions to highway improvement projects, Highway
Maintenance, and Washington State Ferries.
Performance Outcomes:
For items 1 and 2, performance outcomes would include increased productivity, less square footage in leased facilities and/or lower lease costs.
This proposal would reduce the state workforce.
Intergovernmental:
For the items under 3, local governments would likely not be supportive. These items reduce or delay capital projects to their areas, reduce
highway maintenance, and ferry service.
This proposal would reduce leased state facility footprints.
Some changes may be required; additional information will be provided when it is available.
This proposal was not designed to impact Puget Sound recovery.
This decision package is a response to OFM budget instructions requiring transportation agencies submit a 10% reduction.
Stakeholder Response:
Stakeholders would likely be supportive of the increased efficiency supported in items 1 and 2, however would likely oppose the items in 3, as
these would delay capital projects or reduce services.
Page: 5 of 6
IT Addendum
Department of Transportation
Workforce Development Vulnerabilities, and Aging Ferry Infrastructure, due to the reductions to highway improvement projects, Highway
Policy Level ‐ AR ‐ 10% Agency Budget Reduction
Maintenance, and Washington State Ferries.
Performance Outcomes:
For items 1 and 2, performance outcomes would include increased productivity, less square footage in leased facilities and/or lower lease costs.
This proposal would reduce the state workforce.
Intergovernmental:
For the items under 3, local governments would likely not be supportive. These items reduce or delay capital projects to their areas, reduce
highway maintenance, and ferry service.
This proposal would reduce leased state facility footprints.
Some changes may be required; additional information will be provided when it is available.
This proposal was not designed to impact Puget Sound recovery.
This decision package is a response to OFM budget instructions requiring transportation agencies submit a 10% reduction.
Stakeholder Response:
Stakeholders would likely be supportive of the increased efficiency supported in items 1 and 2, however would likely oppose the items in 3, as
these would delay capital projects or reduce services.
IT Addendum
Does this Decision Package include funding for any IT‐related costs, including hardware, software, (including cloud‐based
services), contracts or IT staff?
No
Objects of Expenditure
Objects of Fiscal Years Biennial Fiscal Years Biennial
Expenditure
2022 2023 202123 2024 2025 202325
Dollars in Thousands
Obj. E ($1,124) ($1,124) ($2,248) ($1,124) ($1,124) ($2,248)
Obj. J ($364,589) ($363,589) ($728,178) $0 $0 $0
Obj. E ($25,001) ($24,999) ($50,000) $0 $0 $0
Obj. A ($20,000) ($19,000) ($39,000) $0 $0 $0
Obj. B ($6,000) ($7,000) ($13,000) $0 $0 $0
Obj. E ($11,000) ($12,000) ($23,000) $0 $0 $0
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