Ferry Service Preserved in Short-Term

Washington State Ferries (WSF) is actively working on proposals addressing budget reductions stemming from the passage of Initiative 695 (I-695). The overall effort is designed to bring WSF's programs and operations into alignment with the new budget requirements. "The message we are getting from voters is to institute operating efficiencies while protecting vital services," said Paul Green, director and CEO, WSF. According to Green, in order of priority, service reductions are last on the list. First on the list are reductions in management and support staff. The second priority in saving money is to reduce capital expenditures to reflect the new budget. The final savings will be produced by reducing service. "By developing operating efficiencies in this order, we believe we can stay within our budget limitations while still maintaining capacity and a quality level of service to our customers," Green added. Green announced plans to eliminate 92 management and support staff positions. Currently, management and support staffing accounts for 314 of the 1,986 total employees of the ferry system. The planned expansion of passenger-only service, authorized by the legislature just this past spring, has been discontinued. Plans to improve Colman Dock and purchase land for future service expansions have ceased as well. Staffing reduction levels associated with the downturn are reflected in the previously outlined management and support staff reductions. WSF's operating and capital budgets have been disproportionately reliant on revenue from the Motor Vehicle Excise Tax (MVET). "The MVET funded virtually all of our capital budget, which is the way we maintain and improve our vessels and facilities," Green said. "In addition, MVET funded about 25 percent of our operating budget," he added. The ferry system's pre-I-695 operating budget for 1999-2001 was $316 million. The loss from I-695 is $52 million. By taking $30 million in cash reserves, the ferry system's proposed operating budget is $294 million - totaling a $22 million shortfall. Likewise, the capital budget, which pays for major terminal and vessel projects, will be hit hard. The previous capital program had a budget of $267 million; that figure could be trimmed to $161 million. In determining operations after I-695, the ferry system's objectives are to maintain peak-hour vehicle and passenger service capacity and to maintain summer tourist-route capacity, where cost effective. The ferry system's initial service reduction recommendations to the Transportation Commission (which sets the agency's budget and approves its service plans) call for eliminating all passenger-only service on Puget Sound. Currently, passenger-only ferries serve Seattle, Bremerton and Vashon Island. Also, night and mid-day service would be reduced on all routes (where cost effective). For example, extra weekend trips between Seattle and Bremerton would be eliminated, and night service on the Edmonds/Kingston route would be canceled. In the San Juan Islands, international trips from Anacortes to Sidney, B.C., would be canceled during the fall, winter and spring sailing seasons. These plans will result in the removal of five passenger-only and five auto ferries from scheduled service. "Through a combination of staff cuts, program cutbacks and service reductions, we'll operate through the remainder of the current two-year budget cycle," Green stated. "However, unless a stable source of funding is found for WSF before July 1, 2001, we're going to be in serious trouble. We must address the long term funding issue before then."