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Welcome to County Connection, the official podcast of the Washington State Association

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of Counties, where we dive into the legislative issues shaping the future of our communities.

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From budgets to public safety, infrastructure to elections, we'll break down what's happening

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in Olympia and how it impacts counties from across the Evergreen State.

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Stay informed, stay engaged, and join us as we amplify the voice of Washington's 39 counties.

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Welcome back everybody to our first episode of the County Connection podcast.

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I'm Paul Jewell, the government relations director at the Washington State Association

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of Counties.

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And I'm here with a new guest this time.

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I've got Axel Swanson, the managing director of the Washington State Association of County

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Engineers.

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Now, that's at times been called Wasase here at Wasack, but I think the preferred name

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now is Wasacky, and I don't know why.

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So I'm going to let Axel introduce himself and maybe tell us why they like to pronounce

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their acronym that way.

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Axel, how you doing?

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I'm doing all right.

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We're rounding out a long week.

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It's what, Thursday afternoon, and we're heading into Friday, first week of session, and it's

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been stacked up and sort of back to back.

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So the Wasase versus Wasacky is a, I guess it's been settled.

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I have to say it's been settled because my board president is very clear that it's been

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settled.

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It is Wasacky.

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There was a vote taken at a county leaders conference a couple of years ago.

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You actually took a vote?

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Yeah.

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Yeah, they took a vote.

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I thought it was Wasase and kind of was in that camp, and that's not the way the vote

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went.

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It was close, but.

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Is there, did the people who voted for Wasacky over Wasase, did they say why they preferred

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Wasacky?

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Because I mean, if you look at it spelled out W-S-A-C-E, right, makes total sense.

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Why the switch?

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Because that's the way the vote went, Paul, and you're asking me to explain on a recording

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why some of my board members went a certain way and didn't, and I'm not going to do that.

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I'm not going there with you.

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Okay, I was just wondering why.

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It's been very, it's been clear clearly told to me that we're Wasacky right now, so that's

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where we're at.

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All right.

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Okay, well, that's good enough for me, I guess.

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Well, thanks for joining us, Axel.

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Glad you could take a few minutes out of your busy day.

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I know that you, I know we're all busy here at Wasack.

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There's a ton going on in Olympia right now.

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You mentioned it was day four.

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It's Thursday.

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We started recording some of these yesterday.

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It's hard to believe it's only day four.

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It feels like it's already been deep into session as busy as it's been.

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And with everything that's been going on, you must be expecting a few things this year.

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I'm curious to know what those are and if any of them have started to emerge.

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What do you think is going to happen with transportation?

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Well, like the rest of what's going on with the legislature and the state budget, both

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operating, I just got back from testifying on the Governor Inslee's, outgoing Governor

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Inslee's proposed capital budget.

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But yeah, the transportation budget is similar.

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They're seeing these large gaps between revenue and expenditures.

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And there's, as we know, having worked as long as we have for counties and worked on

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county budgets, there's only so many options you have, right?

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So it's pretty straightforward.

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You either increase revenue or you cut expenditures.

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And so they're going to be looking at that in the transportation budget, not to as large

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of a degree as in the operating budget.

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I think last I heard operating budgets looking at $10 billion or so in terms of the gap between

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revenue expenditures.

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But the transportation budget has similar challenges, mainly around the revenue forecast

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that's most recently come out related to our largest revenue source, not county's largest

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revenue source, but the state revenue source for transportation, which is motor vehicle

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fuel tax.

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And that is projected to flatline and even decrease a little bit in the coming years,

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which given the cost increases and inflation that we're seeing, creates a massive problem

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in both the capital side, capital projects, as well as ongoing maintenance.

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So on the operating budget side, a lot of these, well, the deficit is being driven a

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lot by rising costs because revenues are still going up, just not at a fast enough rate.

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Is that really what you're also seeing on the transportation side?

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How much of it is rising costs in materials and projects versus what you just mentioned,

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which was this flattening or even declining of the major revenue source?

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You know, this is my opinion, but I think I've seen presentations that would back this

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up.

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I think it's more significant on the transportation side, right?

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So we know because we've been doing this a long time and tracking the state budget, roughly

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half of the state operating budgets funded by sales tax and sales tax has been doing

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pretty well, I think by anybody's account.

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If you switch over to the transportation budget, again, most of their transportation budget

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is motor vehicle fuel tax.

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And if you look at that, right, just we've been working hard to limit emissions and working

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on climate initiatives.

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And so as cars become more fuel efficient, more electric vehicles are on the road.

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They're not putting fuel in the tank and therefore they're not paying gas tax.

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So it's sort of this strange thing where, you know, it's associated with a good thing,

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a goal, less emissions, less use of fuel.

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But when your revenue source is tied to that, it creates a structural problem.

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So that's kind of what we're seeing.

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So I think when you look at the inflation or increases in costs related to construction

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and capital projects, those are going up significantly at the same time that, you know, that major

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revenue source is flat.

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So it's a combination of the two.

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Yeah.

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Okay.

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So that's the budget.

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Looks like you got some challenges there that you're expecting to have to deal with.

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What about on the policy side related to transportation?

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What do you think is going to be the big talked about issues this year?

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Yeah, they're tied together.

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I mean, I can definitely touch on some policy bills that have come up as, you know, as recently

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as this week already had hearings or are scheduled for hearings next week.

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But maybe to close the loop on the local side for us at the county, most of our road fund,

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our largest revenue sources from property tax.

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And so property tax is capped at 1% plus new construction, very low, slow to no growth.

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And then you couple that with what I just talked about with the increase in costs for

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capital projects and materials, staffing.

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I would say it's fair that, you know, it's fair to say that we're in a worse, if not

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the same position as the state on our transportation revenue and funding.

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And so we're going to from a policy perspective, we're always going to be looking at that first.

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So whether several local revenue ideas out there.

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We've got a bill filed already to improve the county road administration boards grant

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program.

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So we're looking at new funding and a new grant program through them for local access

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roads.

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There is a draft bill that we've talked about with our legislative steering committee around

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a retail delivery fee that would raise revenue and come back to local roads.

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And then we have a stakeholder meeting tomorrow afternoon on all the work that's been done

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around the initial bill for a road usage charge, which would work to replace the gas tax.

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That wouldn't be new revenue, it would be a replacement of gas tax, but it wouldn't

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have that structural deficit or challenge that gas tax does.

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So the road usage charge is something we've heard a lot, kind of batted around for many,

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many years, really for the last decade, but it seems to be kind of coming to a full crescendo

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maybe, you know, soon, maybe even this year.

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Do you think that's going to be the hot topic?

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Is that going to be the big policy issue this year in transportation?

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Or do you think this other idea around a retail delivery fee might get better traction?

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Yes, I think the road usage charge bill, I expect we will see it in the coming weeks.

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We've seen an outline.

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There's a meeting tomorrow.

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The chair of the House Transportation Committee has said he's going to file the bill.

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But you know, I think that'll be one piece of the question, because like I said, the

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road usage charge, if it gets to the finish line and it is implemented, it doesn't come

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in fast.

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It's more of it starts with electric vehicles and then it moves on to hybrids and then,

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you know, eventually gets to where it would be the replacement of gas tax for even vehicles

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that are still using fuel.

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So it's implemented over a number of years.

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It doesn't happen right away.

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And again, it's just meant to exchange or, you know, take over for the gas tax, no new

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revenue.

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So while I think a road usage charge is somewhat more controversial or could be controversial

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compared to the current system of paying gas tax, and they'll have that conversation,

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it doesn't solve their revenue problem.

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So they're also going to have to have a secondary conversation around where to find other new

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revenue for current transportation priorities and or make cuts or delay projects.

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And so I think there'll be multiple revenue conversations going on as it relates to transportation.

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So even though the road usage charge has been getting a lot of the headlines and a lot of

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the attention, you don't think that's going to be the solution that really they need to

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have fully in place for the future of transportation.

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There's going to be have there's going to have to be other revenue options on the table.

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And those are likely to be discussed this year, too.

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Yeah, yep.

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I think that's true.

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And I think that's why you're seeing, you know, a number of revenue ideas put forward.

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And I think there'll be conversations about if or how the state operating budget can help

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the state transportation budget.

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Well, talking about ideas that are being put forward, we've touched on a few things that

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you think are likely to be discussed this year, things that you're expecting to have

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to deal with on behalf of counties.

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We also have a transportation priority this year, right?

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Counties are pushing for some solutions.

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Tell us a little bit about that strategy and kind of what what your plans are there.

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Yeah, our strategy for transportation funding falls largely in line with the overall association

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of counties revenue strategy.

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That's for an obvious reason.

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The County General Fund is primarily funded with property tax, and so is the road fund.

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And so we'll we'll be there on trying to talk with legislators again and more about the

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impact of having, you know, our major revenue source capped at one percent along with the

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association.

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I don't know that that solves all of our our issues, though.

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And so I think we're we're content, you know, we have brought forward the retail delivery

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fee to the members as a potential new revenue source.

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There are two other states that do that.

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And there was an extensive study done on that over the over last year in the interim, and

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it showed that it would be a real source of revenue.

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And the current draft bill would split that 40 percent with cities, 40 with counties and

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then 20 percent back to the state.

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And I don't know that that alone solves all of our issue either.

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And so the primary aspects of our priority are to fix the structural revenue problem

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that we have with funding and preserving our our road system.

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And so it could include all of those things or one of those things or other things.

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And then specifically beneath that or in alignment with that, we've got budget, you know, budget

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priorities that also go to our budget problems, which, you know, we have significant amount

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of fish barriers that we're responsible for and we're working to replace.

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And so we work with the Brian Abbott Fish Barrier Removal Board.

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And so we'll be working to get their priority list funded in this next biennium.

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And that's one of our priorities, too, is funding for fish barriers.

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Yes.

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Yeah, absolutely.

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So the state's been working hard on replacing their barriers.

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But we you know, we have thousands of barriers, as you can imagine, with, you know, counties

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are responsible for almost half of the roads in Washington state.

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That's seventy eight thousand lane miles.

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And when you have that many lane miles, you have a lot of water crossings.

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What's important to talk about in that discussion, though, is, you know, if you look at the state,

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they don't have nearly the lane miles we do, but they have a lot of ADT, which average

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daily traffic.

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Well, what else about our legislative priority have you not touched on?

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There are definitely other things.

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So I already touched on the County Road Administration Board's request.

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I touched on the Fish Barrier Removal Board request.

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So the governor's proposed budget funded that at forty six million to fund the whole list

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over the biennium would take seventy.

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So we'll be looking for a larger number than what's initially out there.

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And just as a reminder, those are just the the highest level, highest priority projects

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that have been someone's applied for them.

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They've been vetted through a criteria and put on a prioritized list.

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We have many, many more barriers out there that that aren't on that list, obviously.

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We will also be looking at safety.

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So we haven't touched on safety in this conversation.

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And if you look at the Washington State Traffic Safety's dashboard, the the data there is

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alarming and it's sad.

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We are we are in a traffic safety crisis in terms of the fatalities.

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We're seeing a program that was started recently in the move ahead package.

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So two years ago in the biennium, that biennium, it started a new program for reducing rural

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lane departures.

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So if you look at the data, often if there's a fatality, a high percentage of those crashes

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happen when a vehicle leaves the roadway or crosses a lane.

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And there are a number of things that you can do to try to prevent that, whether it's

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guardrails or illumination or, you know, other other safety mechanisms.

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And so there is a program, a new program started up with state funding to try to improve some

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of those roadways.

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And we certainly supported that.

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And we're that's one of our big initiatives is to try to double the funding from that.

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So that's part of our legislative priority list on transportation as well.

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Yeah, we're trying to get at least eight million in that program.

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It started out at four.

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Oh, well, well, we got a lot of big, a lot of big asks this year, but a lot of important

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a lot of important reasons for those asks, seventy eight thousand lane miles not being

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the least important part of it.

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Well, anything else that you want to add, Axel, when you're looking forward to this

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session as far as things that you expect or maybe a few surprises out there that we haven't

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heard about?

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I would add because you mentioned the lane miles and we talked about that.

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Another thing for the maybe the new listener to keep in mind, we we did discuss water crossings

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and fish barriers, but counties, because of that number of lane miles, own the most bridges

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in the state as well.

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So it's just something to always keep that front of mind and think about that.

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Bridges are expensive.

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They're aging and we have a number of them that, you know, are not in great shape and

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need either repair or replacement.

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So that's another area we look for funding both from the federal and state government

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to help us with.

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And then to close maybe or just talk about kind of what's keeping us busy this week is

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we never can anticipate or know fully what legislators have in mind and what they're

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going to file or what they might want to change.

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And so we've been reacting and responding, or I have at least mostly this week to that,

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because in our job, we see a lot of really good ideas and well intentioned policy, but

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we have to drill down and focus on what the implementation means.

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Can we actually achieve it?

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Can we make it happen?

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How do we make it happen?

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What will the cost be or the inefficiency be if our members have to carry that out?

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And as you know, we've had some discussions this week, number of bills, and we're kind

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of working on amendments around just that understanding that someone has good intentions

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is well meaning and actually maybe has a good policy goal.

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But the implementation and execution for our members is really challenging maybe without

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some word changes in the statute.

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Yeah, sometimes it's a long distance from a really great idea that's shaped to achieve

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a really good outcome to actually implementing that and making it work on the ground, which

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is what counties do, right?

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That's what counties do.

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That's what county commissioners do.

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And that's what our county road departments do every single day.

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That's why I've been doing this for 18 years.

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It's hard working for counties, but it's exciting because counties are where things happen.

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We do a lot of good work every day.

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Well thanks for joining us, Axel, on our first episode of County Connections.

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As we mentioned at the beginning, this is only day four of a 105 day session.

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It's going to be a long one this year.

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It goes all the way through nearly the entire month of April.

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And once it starts, it doesn't stop.

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We were kind of talking at the very beginning here a little bit how little of the weekend

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oftentimes you get when you're working during the legislative session.

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So it's a bit of a marathon that started on Monday.

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And we'll be giving quite a few updates as we go along.

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I hope you'll be willing to come back and inform our listeners as things progress.

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I will be.

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And maybe you can invite me earlier in the week so I'm not so tired.

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Well, we'll try.

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But as the weeks go on, you never know.

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All right.

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Well, thanks, Axel.

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And thanks everybody for listening in.

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We'll see you again soon.

