FerriesFactSheet

WashingtonStateFerries(WSF)operatesafleetof21vesselsserving9routesand20destinations. Ferriescarrygoods,tourists,andpeopletravelingtotheirjobs.Ferriesarethesinglelargesttourist attractioninWashingtonState. FerryRiderFacts WSFcarriedmorepassengersin2009thanSoundTransit. A2008surveyfoundthat90%ofWesternWashington residentsrideferries. CountiesservedbyWSFmakeupapproximately60%of thestatepopulation. 48%ofPugetSoundresidentshavetakenaferryasapart ofarecreationaltrip. FerriesconnectsixUSNavybasesinPugetSound,andare partofthecriticalinfrastructureofourstate.(SeeMap) FerryFunding Over70%ofWSFoperatingcostscomefromfares. Comparableferrysystemsrecoveranaverageof48.8%. WSFneedstofillanoperatingbudgetgapof$30million peryear,whiletheWSDOTannualbudgetisover$2 billionperyear. Forevery5%increaseinfares,ridershipdeclinesby2%. Afareincreaseof$0.34perrider(5%)raises$4.4million inrevenueandcreatesanoveralleconomiclossof$3.2 USNavyBase millionduetoreducedridership. TheWSFFleet TheaverageageoftheWSFfleetis35.6years. WSFhasbuiltonlyoneboatinthepast11years, whilethefleethascollectivelyagedby231years inthattime. WSFwillneedtobuild15boatsinthenext30 yearstoretireexistingvesselswhentheyreach 60yearsold. Passengers in2009 111.7million 31.3million 22.5million 18.7million

Agency KingCountyMetro SeaTacAirport WashingtonStateFerries SoundTransit

ImpactsonTourism WashingtonStateFerriesarethesinglelargesttouristattractioninWashingtonState. TouristsvisitingWashingtonspentanestimated$15.2billioninthestatein2010. TourismspendinginWashingtongeneratedapproximately$992millionindirectlocalandstate taxrevenuesin2010. TheSanJuanIslandswerelisted#2ontheNewYorkTimesPlacestoGolistfor2011.

LegislativeMessage
Ferry Cuts = Reduced General Fund Revenues
Reduced property values Reduced tourism and commerce Harm to small businesses Reduced employment = = = = Reduced Property Tax Revenues Reduced Sales Tax Revenues Reduced B&O Tax Revenues Reduced Sales and B&O Tax Revenues

In other words.... Ferry Cuts Don't Make Sense (to your pocketbook). They make the current budget problems worse. Because the WSF Fleet is aging, delaying new ferry construction is effectively a cut in service.

WSFBudgetChoices

3%OtherAdminCosts$14million CreditCardFees Leases Printing Marketing TariffReview PmtsOther OtherStudies Govs

(OperatingCosts)

15% Vessel&Terminal Maintenance $63million 2%Mgt&Admin,Labor$9million AsstSecretary Accounting Communications Planning Budget&Grants HR&Legal Vessel&TerminalMaintenance VesselMaintenance TerminalMaintenance PortEngineers EagleHarborFacility

Vessel&TerminalOperations Deck&EngineLabor Training Safety&Security Dispatch CustomerInformation Insurance PortCaptains Fuel

80%
VesselandTerminalOperations $341million(Includes $79million for fuel)
WSFOperatingCostsare95%Operations&Maintenance

CutService

ServicecutswillreducegeneralfundrevenuesfromPropertyTaxes,Sales Taxes,andtheBusiness&Operationstax.Servicecutsmaketheproblem worse. Resultingrevenuelossiseconomicallyinefficient,inequitableto communitiesservedbyMarineHighways,andreducescommerce. WSFhasalreadycut$28millioninoperatingcosts.Lessthan5%oftheWSF budgetisallocatedtoadministrativecosts.However,someadditional optionsforcostsavingsareincludedonthenextpage. ConsiderHB1352,whichwouldendtheSalesTaxExemptionforOregon residentsinnonbordercountiesandallocatesomerevenuestoferries. Considerataxof$23pertiresoldinWashington,whichwouldraisean estimated$1218millionandwouldbeproportionaltohighwayuse.

IncreaseFares CutOperatingCosts

AdditionalRevenue

OptionsforAdditionalCostSavings
AdditionalWSFcostscanbeeliminatedwiththehelpoftheWashingtonStateLegislatureandthelabor unionsrepresentingferryworkers: Annual Savings $1million $6million $6million $3million $0.3million $6million $3million Legislative Action Required Union Contract Impact

Opportunity ReduceEmployeeTravelCosts ExemptFerriesfromDieselSalesTax AlignFerryWorkerBenefitswithOtherStateEmployees ExtendStateEmployees3%cuttoFerryWorkers EliminateFerryBiodieselProgram ReduceCrewingtoCoastGuardMinimumRequirements AdditionalHeadquartersCuts(10%)

TotalSavings

$25.3million

2010FerriesBudgetDetail
WashingtonStateFerrieshasanoperatingfundinggapofapproximately$30millionannually. Historically,thisrevenuehasbeenmadeupthroughspecialtransfersfromtheWSDOTgastaxfund,but gastaxrevenuesarenowfullyutilizedfordebtserviceonDOThighwayprojects. OperatingRevenue(Fares,concessions,advertising) TotalExpenses NetOperatingLoss DedicatedStateFundingLicenses&Fees DedicatedStateFundingOther $150,505,000 ($208,584,000) ($58,079,000) $15,000,000 $15,000,000 ($28,079,000)

OperatingFundingGap

ComparisontoOtherWSDOTProjects
The10yearcapitalprogramforWashingtonStateFerriesrepresentsapproximately3.2%ofthetotal budgetforWSDOTsthreelargestprojectsinthestate. Project SeattleViaductReplacement(Tunnel) SR520FloatingBridge I5ColumbiaRiverCrossing WashingtonStateFerries10yearCapitalPlan TotalCost $4.00billion $4.65billion $3.60billion $0.39billion CostPerMile $470million $680million $3.60billion $220million

HistoricalFerryFunding
Ferryfundingrepresentslessthan2%ofatransportationbudgetthatisnearly$8billionperbiennium, andhasmorethandoubledsince1997.

RidershipDetails
Farebox Total Ridersin %ofWSF Recovery 2010 Ridership Rate% 5,977,135 26.62% 104.80% 4,073,517 18.14% 115.50% 3,883,399 17.30% 90.30% 2,939,376 13.09% 53.90% 2,516,029 11.21% 48.00% 1,725,430 7.69% 44.00% 649,422 2.89% 38.40% 563,804 2.51% 45.60% 105,472 0.47% 54.80% 22,451,404 70.50%

Route SeattleBainbridge EdmondsKingston MukilteoClinton FauntleroyVashonSouthworth SeattleBremerton AnacortesSanJuans Pt.DefianceTahlequah PtTownsendKeystone AnacortesSydney Total

FareboxRecovery=FareRevenues/RouteOperatingCosts