(The Center Square) – State transportation officials are considering raising toll rates on Interstate 405 and State Route 167 to $18 and shifting other policies, after capping the dynamic rate at $15 in 2024.
The Washington State Transportation Commission adjusted toll rates for the 50-mile corridor two years ago to complete the first phase of a series of projects expected to cost about $966 million. An analysis by the state treasurer’s office has since found that toll revenue could miss the mark by $10 million.
The Washington State Department of Transportation presented several scenarios to the commission on Tuesday to fill the gap. One option would maintain the maximum $15 toll rate, require weekend tolling on I-405, and require at least three occupants per vehicle on SR 167 during peak hours, as on I-405.
Another option would raise tolls to $18 but still leave a $450 million gap for the next group of projects.
“Existing tolls, scenario one, we get really close, but we don’t quite get to 100% funding. We’re off by about $10 million,” Deputy Treasurer Jason Richter said Tuesday about maintaining existing policies.
Tolling on SR 167 and I-405 generated $30.4 million in 2024, averaging 6,400 weekday trips, after the commission raised the maximum rate to $15. WSDOT recorded the same weekday trip average as last year, but toll revenue increased by 31.2% to $39.9 million, squeezing those who use the express lane.
Like Ricter, WSDOT Toll Division Director Ed Barry suggested adopting a scenario to boost toll revenue and align policies across roadways. Liz Horta, a transportation consultant for the professional services firm Stantec, argued Tuesday that the higher end of the rates will affect only a fraction of drivers.
“The $18 was informed by some of those previous analyses,” Horta said, arguing that it could improve performance. “The maximum toll rate of $15 or $18, that applies to a very small portion of traffic.”
When asked about the potential toll increase, Charles Prestrud, director of Washington Policy Center’s Coles Center for Transportation, agreed that only a percentage of drivers will pay the maximum rate.
He said it makes sense to charge a higher rate to optimize traffic flow, and wasn’t surprised Olympia is considering another toll hike. Toll lane projects, financed with bonds that are backed up by toll revenue, can easily end up in a spot where costs exceed budget or a recession drives down traffic, Prestrud said.
“The difficulty comes when bond obligations or budget pressure leads the tolling authority to raise toll rates above the optimal level for managing traffic flow,” Prestrud told The Center Square, arguing that ongoing operations, maintenance and preservation should be the state’s top priority in setting rates.
“That scenario is no longer about creating value; the priority shifts to revenue extraction,” he said.
Rep. Andrew Barkis, the lead Republican on the House Transportation Committee, said it’s bad timing to consider another toll hike when gas is starting to eclipse $6 per gallon in certain areas of the state.
While some of the recent increases in gas prices are attributable to the conflict in Iran, much of the burden at the pump comes from the state’s tax and climate policies. Highway construction costs have also increased by about 70% since 2020, making projects along SR 167 and I-405 harder to finish.
Barkis said state regulatory processes make construction even more expensive and time-consuming.
According to a recent study commissioned by the Association of Washington Business, Washington Ranks as the eighth-most regulated state nationwide.
Barkis says cutting some of that red tape and dipping into Climate Commitment Act funding could help close the gap without toll increases.
“There’s a lot of things that I have proposed over the years of my service in this position as a ranking member on transportation that have gone nowhere,” Barkis said, referring to the Republican minority.
“The increases in cost, the increases in taxation, those are all majority policies,” Barkis continued, noting that he can’t support asking Washingtonians to reach into their pockets for more revenue.
WSDOT plans to return with more data over the coming months as the commission considers ongoing feedback before deciding whether to increase rates and adjust policies sometime next winter.
