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Tariff Policy Committee Recommends Fare Increase

Maritime Activity Reports, Inc.

September 2, 1999

The Tariff Policy Committee is recommending a general fare increase and other changes to the Washington State Ferries (WSF) rate structure, effective in May 1999, pending public input and Transportation Commission action. The Policy Committee, consisting of legislators, Ferry Advisory Committee members, transit, labor and industry representatives, and WSDOT and WSF staff, has been meeting since 1991 to assess WSF revenue needs. The Committee considered a number of proposals before deciding on ani nflationary increase of 2.2 percent plus fares rounded up to the next $0.10 for passengers and motorcycles and $0.25 for all other vehicles. The fare increases are driven by several factors. New ferry services and inflation will result in higher system operating costs for the ferry system. These costs are associated with day-to-day system operations. Farebox revenues have supplied approximately 60 percent of the WSF operating budget, while the State of Washington contributes the remaining 40 percent. WSF does not anticipate an increase in state funding for operations at any time over the next several years, requiring users to cover a slightly larger share of increasing operating costs.

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