COVID-19 has Sound Transit’s capital plan reeling

The cost for the lines that will connect Ballard to West Seattle has more than doubled.

Sound Transit

As the COVID-19 pandemic chews a bigger hole in the purses of public transit agencies across the country, Sound Transit is taking a hard look at its capital plan and will be making some difficult decisions in the coming months.

Changing or canceling projects and altering schedules are on the table as Sound Transit board members get a clearer picture of the financial impact of the coronavirus. A recession like the one that happened after the dot com crash could cost the agency $5.6 billion, while another Great Recession could result in a loss of $11.9 billion. Sound Transit Board Chair Kent Keel says “nice-to-have” elements on projects might not be affordable anymore, and the more that is spent on each project might extend schedules, which means a late delivery.

Sound Transit relies on tax revenues, debt financing and fares. Sales tax revenues account for 53 percent of the agency’s financial pot. Property taxes and excise taxes on car sales also are part of the formula and could have a longer-lasting impact.

Sound Transit is getting ready to receive $166 million in federal stimulus money, but Chief Financial Officer Tracy Butler says spending will have to be slowed in the coming months. One idea is spreading the projects out over a longer timeline.

Sound Transit CEO Peter Rogoff believes projects currently underway and under contract will be prioritized.

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