Mayoral Report—2006

Growth & Related Traffic Impacts

Our regional government, Metro, compiles population and employment projections for the region. Metro predicts that our region will grow very fast over the next 25 years—the broader region, including Clark County, is expected to grow an additional one million people, of which 400,000 is forecasted for Washington County. That growth projection for Washington County would mean an additional five cities of Beaverton in equivalent population over the next 25 years. In simpler terms, Washington County is growing at a rate of nearly 1,000 new residents every month, or a pace of 21 more cars on our streets and highways every day.

With these growth projections we have many challenges ahead and much planning to do. One needn’t be a traffic engineer to realize that our roads and overall transportation system is barely adequate today and will need major improvements to keep up in the next two decades and more. I know that overall traffic congestion is a major concern to Beaverton and Washington County residents. Congestion is the result of more people within the Urban Growth Boundary (UGB) and more cars and freight vehicles on the roads increasing travel time. We have fewer dollars to fund road maintenance, preservation, busses, light rail and commuter rail, and road capacity projects to move people and goods. Normal inflation and construction costs fueled by increased prices for steel and oil continue to rise. Since 1993, almost half of the transportation dollar has been eaten by inflation.

Metro, Oregon’s Department of Transportation (ODOT) and local governments in the Portland region estimate a $10 billion need in traffic, rail and other transportation related projects in our region for the next 25 years. Multiple current funding sources can be identified for only about $4 billion of the estimated need—a shortfall of a little less than $6 billion in the next 25 years. Overall funding for transportation projects has changed significantly in the last 10–20 years. The Oregon Legislature has not increased the gas tax for highway funding since 1993. As mentioned previously, inflation has eaten nearly half of the available transportation dollar since 1993. Lastly, the federal government does not fund projects to the levels of the 1980’s and 90’s. For example, the Eastside Max and Westside Light Rail received over 70% funding from the federal government. To give a comparison of just how much the federal pot has shrunk, the Westside Light Rail project cost approximately $1 billion—which means that Congress allocated $700 million to the region and the remainder was paid from a combination of other local resources. Today, it is barely half.

This past year, a “Cost of Congestion” study for the overall region was completed with funding from private and public sources. Private industry is concerned that traffic congestion does negatively affect local businesses and may lead to a business either leaving the region and/or new ones deciding not to locate here. It is estimated that within 20 years our increasing congestion patterns may cost us up to $887 million annually in lost business and productively. Those numbers are significant and beg us to find solutions to our increasing traffic congestion problems.

Funding for street repair, capacity improvements, system expansion and rail projects come from multiple sources. The federal funding is derived from federal gas taxes and truck taxes. In addition, we can receive “earmarks” in the federal budget that specifically target a project that is supported by a US Senator and/or Representative. A transit agency like TriMet can receive capital and operating formula Highway Trust Fund dollars through the Federal Transit Administration. State sources of funding come from the State Highway Trust Fund that is supplied by state gas tax, vehicle registration and truck taxes. The state money is allocated 60% to ODOT, 24% to counties and 16% to cities. In Beaverton, we receive about $3.2 million annually from the state for bridge, street, signal, bike, pedestrian, preservation, maintenance, landscaping and safety projects. Our asphalt overlay program uses the largest amount. Beaverton’s other direct annual sources include the Traffic Impact Fees (TIF) paid by new development, Street Lighting Funds for street lights paid through our general property tax funds and our share of the countywide one-cent gas tax. In addition, some new construction monies have been provided by the countywide Major Streets Transportation Improvement Program (MSTIP) monies approved by voters three times and administered by the County Board of Commissioners. As you can see, we have no single source of funding.

As time passes, you’ll have opportunities to become further informed and involved in providing comment and decision making regarding future road, highway and rail transportation projects. Our challenges are big and the solutions are complex.

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