Chapter 16: Transportation

Transportation agencies should develop their budgets within the context of the six goals adopted by the Legislature and codified in RCW 47.04.280:

• Preservation: To maintain, preserve and extend the life and utility of prior investments in transportation systems and services.
• Safety: To provide for and improve the safety and security of transportation customers and the transportation system.
• Stewardship: To continuously improve the quality, effectiveness, and efficiency of the transportation system.
• Mobility: To improve the predictable movement of goods and people throughout the state, including congestion relief and improved freight mobility.
• Economic vitality: To promote and develop transportation systems that stimulate, support, and enhance the movement of people and goods to ensure a prosperous economy.
• Environment: To enhance Washington’s quality of life through transportation investments that promote energy conservation, enhance healthy communities, and protect the environment.

In a summary document, identify:

1. The initiatives and investments in the base budget or proposed requests that tie to one or more of these goal areas; and
2. The specific and targeted outcomes that are expected.

Transportation agencies designated as fund administrators should submit to OFM a four-year financial plan for all funds they administer that covers the current (2025-27) and ensuing (2027-29) biennia. Agencies should include documentation on assumptions made in the plan, contractually obligated increases, inflation, and bond interest rates, etc.

State law requires that the budget include a strategic plan for reducing the backlog of maintenance and repair projects. See RCW 43.88.030 and references in the capital budget instructions.

Washington State Patrol

Provide narrative summaries of:

• Update on recruitment and retention issues, including projected retirements for the 2027-29 biennium.
• Academy class schedule proposed for the 2027-29 biennium.
• Vehicle and aviation fleet life-cycle analysis and replacement plan.

Requests for any new building facility must adhere to OFM’s capital budget instructions including attaching a C-100 cost estimate with the budget submittal.

County Road Administration Board

Supporting statistical information, including status of rural roads, rural bridges, and all-weather road programs. A table detailing grant awards for the current biennium and anticipated new awards for the 2027-29 biennium for the following programs:

• Rural Arterial Program (RAP)
• County Arterial Preservation Program (CAPP)
• County Ferry Capital Improvement Program (CFCIP)

Transportation Improvement Board

Supporting statistical information, including status of sidewalks, urban arterials, and small city arterial programs. A table detailing grant awards for the current biennium and anticipated new awards for the 2027-29 biennium for the following programs:

• Small City Arterial Program (SCAP)
• Small City Sidewalk Program (SCSP)
• Small City Preservation Program (SCPP)
• Urban Arterial Program (UAP)
• Urban Sidewalk Program (SP)
• Arterial Preservation Program (APP)

Freight Mobility Strategic Investment Board

A LEAP list of awarded and anticipated projects for 2027-29 and three subsequent biennia for the Freight Mobility Program.

Washington State Department of Transportation (WSDOT)

Grant Programs
The following grant programs within WSDOT must submit a table detailing reappropriations and new awards. Information will include project title, lead agency, total project cost, grant request, biennium awarded and catalog of federal domestic assistance number where applicable.

• Program F – Aviation Grants
  • Preservation
• Program V – Public Transportation Grants
  • Rural Mobility Grants
  • Special Needs Grants
  • Vanpool Investment Program
  • Regional Mobility Grant Program
  • Transit Project Grants
• Program Y – Rail Grants
  • Freight Rail Assistance Program
  • Freight Rail Investment Bank Loans
• Program Z – Local Programs Grants
  • Safe Routes to School Grants
  • Pedestrian and Bicycle Safety Grants
  • Surface Transportation Program Enhancement Grants
  • National Highway Freight Program Grants

Operating Programs
WSDOT must include the following ferry-specific information to support its operating budget request:

• Program X – Ferry Operating Program
  • Information that supports the need for maintaining, expanding, or reducing service. Vehicle and passenger ridership forecast data should also be included.
  • WSDOT is required to set level-of-service standards on ferry routes in consultation with local governments. Submit level-of-service information with the budget request.
  • Fuel price changes are a maintenance level (ML) decision package (DP) item. Identify any change to the estimated number of gallons separately in a DP. Document diesel and biodiesel assumptions.

Capital Programs
Transportation Executive Information System (TEIS) and required project information. RCW 47.05.030 requires the submittal of a 10-year investment plan. Capital transportation projects are included in the following WSDOT programs:

• Program D – Capital Facilities
• Program I – Improvements
• Program P – Preservation
• Program Q – Traffic Operations
• Program V – Public Transportation
• Program W – Washington State Ferries
• Program Y – Rail
• Program Z – Local Programs

Unless specifically required, enter transportation capital information into TEIS at the Budget Identification Number (BIN) level of detail in a manner consistent with the last legislatively enacted project list. Project list transmittals must comply with the TEIS data sharing agreement.

To the extent possible, WSDOT will include a narrative that explains why projects proceeded slower or faster than was anticipated in the last enacted budget. Additionally, WSDOT will submit written narratives to explain why projects had overruns or underruns that exceed $500,000, or 10 percent, when compared to the last legislatively enacted project list.

To the extent possible for projects that have reappropriations WSDOT will include a narrative that explains reasons for the reappropriation. Capital projects will be submitted at the policy level.

WSDOT will identify in a separate document any new projects added to the project list or existing projects on the list that has been cancelled with a description of why they were added or canceled.

Identify contingency costs and risk reserves in a separately submitted spreadsheet for projects greater than $5 million and provide an explanation of the allocation process. For each project, you must identify the initial risk reserve and remaining risk reserve.

WSDOT must submit one project list for both the second supplemental request in the 2025-27 biennium and the 2027-29 base budget request. The project list will show expenditures for 2025–27, 2027–29, 2029–31, 2031-33, 2033-35, 2035-37, 2037-39, 2039-2041, 2041-2043 and “future.”

Agencies will increase the cost assumed in future biennia by an appropriate inflation factor. The agency submitting the capital project list will provide a narrative document with its budget submittal that details the inflation factor used and the assumptions used to determine the factor. WSDOT must separately itemize all requests for the construction of new buildings in its proposed TEIS project list and not include buildings as part of larger transportation projects. Requests for any new building facility must adhere to OFM’s capital budget instructions including attaching a C-100 cost estimate with the budget submittal for projects $2 million or more (Laws of 2026, Chapter 257, Sec. 303(3)).

However, projects related to buildings as part of larger transportation projects, such as renewing a lease, relocating, closing, downsizing, or obtaining new space, must be identified in the Facility Cost Template as a Transportation Capital Project. See Chapter 9: Facility Costs for further instructions.

WSDOT must provide a narrative and explanation for any change in administrative support or overhead cost (sub-programs I5, P4, W1 and W2), including new or unusual items. Inflate outer years, projected costs consistent with agreed upon financial planning processes.

WSDOT must provide a summary of consultant usage in all operating and capital programs in 2025-27 and projected usage for 2027-29.

WSDOT must provide a report on Motor Vehicle Account – State and Motor Vehicle Account – Federal appropriation authority transferred between programs I and P in the prior fiscal year (Laws of 2026, Chapter 257, Sec. 304 (3) and Sec. 305 (3)).

Summary of “Section 601” Changes (OFM-Approved Cost Changes)
As required by Chapter 472, Laws of 2023, WSDOT will include a summary detailing all transfers made pursuant to Section 601, during the prior biennium, including any effects to the total project budgets and schedules by:

• Fund
• Phase in which the project increase occurred
• Region

Summary of “Section 607” Project Scope Changes
As required by Chapter 472, Laws of 2023, WSDOT must provide a summary of all approved scope change requests from the preceding year. The report should include a comprehensive comparison of the project scope before and after the requested changes.

Nickel, TPA, and Connecting Washington Status Reports
WSDOT will provide an update with each budget submittal that compares the original project cost estimates in the 2003, 2005 and 2015 transportation lists to the completed costs of the project (or the most recent legislatively approved budget and total project costs for projects not yet completed).

Capital Facilities
All WSDOT programs must itemize all requests for the construction of new buildings in a TEIS project list. Requests for any new building facility must adhere to OFM’s capital budget instructions including attaching a C-100 cost estimate with the budget submittal for projects $2 million or more (Laws of 2026, Chapter 257, Sec. 303(3)).

Minor Works Lists
Minor works projects are capital facility projects valued under $2 million and do not require the submittal of C-100s. Minor works projects should be completed within the biennium

The following are not minor works projects:

• A phase of a larger project
• A project that, if combined over a continuous period, would exceed $2 million
• Supplemental funding for a bigger project that received a separate appropriation
• Planning, design, and studies except for technical or engineering reviews or designs that lead directly to and support a project on the same minor works list
• Movable, temporary, and traditionally funded operating equipment
• Software not dedicated to control of a specialized system
• Land or facility acquisition
• Rolling stock
• Computers
• Funding to supplement projects with funding shortfalls unless expressly authorized
• Moving expenses

WSDOT must include with its 27-29 budget submittal a list of its minor works projects within its request.  This list should provide project amounts and prioritization of the projects. WSDOT must accompany this list with a short description of each project and the location that each project will be undertaken.

Once the transportation budget is enacted, WSDOT must submit final minor works project lists, including requested revisions to the project lists, to OFM for review and approval, and to the House and Senate Transportation committees for review and comment.

Minor works lists submittal must include:

• Minor works projects, budget estimates, and descriptions
• Explanation of variances from the enacted minor works lists
• Alternate minor works projects, if applicable

No expenditures may be incurred prior to OFM’s written approval of the updated minor works lists and allotment schedule. With OFM approval, savings from a minor works subproject may be transferred to another minor works subproject for which the project budget allocation is insufficient, or to fund an alternate minor works subproject that is approved by OFM. Minor works projects must be completed within the biennium in which they were appropriated (Laws of 2026, Chapter 257, Sec. 303(2)).

Mega Projects
For each mega-project active in the upcoming biennium, WSDOT will submit a funding plan summary that includes the original project cost estimate and the current project cost estimate; the work completed to date; the work that will be completed in the ensuing biennium; and planned expenditures for the outer biennia. WSDOT will also submit a list of BINs that make up the mega-project’s current project cost estimate. Subprojects and their subtotals must also be included for each mega-project.

Governor’s Salmon Strategy
If this request is related to implementing the Governor’s Salmon Strategy, see Chapter 14 of the operating budget instructions for additional instructions.

Ferry Capital Program – Program W
WSDOT must include the following ferry-specific information to support its capital budget request:

1. WSDOT must submit the vessel rebuild and replacement plan developed and maintained in accordance with RCW 47.60.377. The plan must include a summary of the proposed vessel deployment plan with the budget that includes a table showing vessel deployments by biennium, route number and class of vessel for the entire planning period (e.g., the “Lego chart”).
2. Project list requirements:
   1. Submit terminal projects under the W1 Subprogram with the same detail shown on the LCCM Report.
   2. Submit vessel projects under the W2 Subprogram at the BIN level and supplement with a detailed PIN list describing the specific scope of work to be performed in a current biennium as it ties to the specific budget submittal.

Capital project. A capital project is a project to construct new infrastructure or significant long-term renewal or improvements to existing infrastructure. A capital project usually has a useful life of at least five years and typically requires the involvement of an architect or engineer. Grants made by the state to fund capital projects for other entities are often included in a capital program. Studies for the benefit of capital projects or programs may also be included in a capital program.

Preservation project. A preservation project is defined as one that maintains, preserves, and extends the life of existing state facilities and assets, and does not significantly change the use of a facility or asset. Preservation projects generally have little effect on future operating programs and budgets, except for reductions in the agency’s maintenance costs and the deferred maintenance backlog. (RCW 47.60.005)

Improvement project. An improvement project is defined as one that primarily achieves a program goal, such as changing or improving the characteristics of an existing asset to meet new program requirements or creating a new asset through construction, lease and/or purchase. (RCW 47.60.005)

This category is less concerned with life extension of an asset and includes projects ranging from building new assets to significant renovation of existing assets. Improvement projects may also improve conditions, accommodate changes in service or clientele, or maintain or increase federal reimbursement.

Improvement projects must be tied to the statewide goal areas and strategies, organizational and program goals, and objectives and activities:

• Certain types of capital spending that cannot be categorized as preservation are categorized as improvements. This includes projects for utilities or other systems not replaced on a standard life cycle, assets not yet built and other non-preservation items. (RCW 47.60.005 and RCW 47.60.345).
• Additionally, each improvement project includes an allocation of system-wide and administrative capital program costs that are separately identifiable from direct project costs. (RCW 47.60.335)
• Finally, if a project meets both the improvement and preservation definitions, it is classified as an improvement project. (RCW 47.60.005).

State law provides a definition of ferry improvements in RCW 47.60.005, RCW 47.60.335, RCW 47.60.345 and RCW 47.60.355.