Sound Transit projects to lose $12B by 2042 as portion of tax base dies

Written by RT&S Staff
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Sound Transit will perform rail grinding maintenance for the next four weeks.
Sound Transit

The economic downturn in the Seattle area has put some businesses on a fatal downward spiral. They will not recover, and the loss has Sound Transit officials looking at a dismal future regarding the agency’s massive transit expansion.

Sound Transit could permanently lose 23 percent in sales taxes, $1 billion in 2020 and 2021 and as much as $12 billion through 2041. A drop in ridership also is factoring into the financial suffering.

The agency could borrow more money. Before the start of 2020 Sound Transit’s credit rating was sparkling, but the state of Washington has a law in place that only allows a certain amount of borrowing. Voters and lawmakers would have to approve a higher credit ceiling.

Sound Transit also could delay projects and extend debt payments beyond 2041, or take one of the recommendations laid out by Project Development Director Don Billen. Billen says lines could be broken up into phases or the agency could pull some features from the planned routes.

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