The Tariff Policy Committee will formally present their recently completed proposal on ferry fares to the Washington State Transportation Commission during the CommissionÕs January meeting. The Commission, if they choose to proceed with the proposal, will begin a process that includes public input over the next three months.

The Process to Raise Ferry Fares

At their December meeting, the Commission will decide whether or not to open the formal process of adopting a new ferry fare, known as the Code Revisor process. Once open, the Commission decides at their January meeting whether to accept or modify the proposal and whether the proposal should be sent out for public input. The Tariff Policy Committee and Ferry System staffs are assigned the task of conducting a series of public meetings. In most cases, the public meetings are held in February and March.

Following the public outreach and public comment period, the Tariff Policy Committee considers the public input they receive and finalizes the proposal to the Transportation Commission. In mid to late-March, the Transportation Commission will hold a formal ferry tariff hearing. At that time, the Commission will make a final decision about a fare increase.

The Proposal to Raise Ferry Fares

If approved the higher fares will be effective in May 2002. The Tariff Policy CommitteeÕs recommendation includes the following:

12.5% Fare Increase Ð The proposal is based on a general fare increase of 12.5%, rounded to the next quarter for vehicles and to the next dime for passenger fares. For certain routes (where a new fare structure is being phased in) the general fare increase will also be adjusted based on the time-based tariff structure (tariff route equity.)

San Juan Island Rate Structure Ð A new San Juan Island ferry fare structure is being recommended. The new fare structure is designed to better match the peak ridership characteristics of these routes. Under the proposal, ferry fares would be split into Early Week fares (Monday-Wednesday) and End of Week fares (Thursday-Sunday).

The Early Week fares would be discounted by 15%, to offer residents who can adjust their schedule a more affordable travel option. The early week fare discounts will be offset by a higher peak-season (May Ð October) surcharge on auto fares (35% instead of the current 25%) and a new peak-season surcharge on passenger fares of 20%. The summer surcharges would be applied to both Early Week and End of Week fares. As is the current policy, users of coupon books will be exempt from the summer season surcharges.

Discount Rate for Passenger Coupon Books Ð The TPC is recommending a reduction in the Passenger Coupon discount rate from 30% to 25%. The passenger coupon books provide for discounted travel for commuters.

The auto coupon discount rate would remain unchanged at the current 20% discount.

Commuters have the option of switching to the monthly passenger pass that offers an approximately 40% discount, assuming the user makes 16 round-trips on the ferries in a month.

Customers in the San Juan Islands do not have access to the monthly pass option. As a result, the discount rate on Passenger Coupon Book for these routes will remain at 30%.

Discounts for Frequent Commercial Users Ð The TPC is recommending a phased elimination of the discounts for frequent commercial users. Currently, commercial users with ferry system accounts are eligible for a 20% discount on their travel if they make at least 6 round-trips per week. Generally, only the largest commercial users have been able to take advantage of this program. As a result, the Committee is recommending ending this discount by reducing it 5% per year over the next four years.

Who is the Tariff Policy Committee?

The Tariff Policy Committee is an advisory committee to the Transportation Commission and is composed of Legislators, Ferry Advisory Committee members, transit, freight and private sector interests, labor and representatives of the Department of Transportation. The Tariff Policy Committee is tasked by the Commission to conduct an annual review of the ferry systemÕs tariff structure and revenue needs and make recommendations on fare modifications.

What is Tariff Route Equity?

In 2001, the TPC implemented a time-based ferry fare structure called Tariff Route Equity in which vehicle fares consider the relative crossing time on each route. The intent of the policy is to ensure that customers are paying in proportion to the amount of service they are using. As a result of tariff route equity, not all routes experience the same level of ferry fare increase. For example, Tariff Route Equity results in higher than average fare increases in the San Juan Islands and no fare increase on the Southworth-Fauntleroy and Port Townsend- Keystone routes.

Background on Ferry Funding

In 2000, Washington State Ferries (WSF) lost approximately 20% of its operating funding and 75% of its capital funding due to a reduction in the motor vehicle excise tax. Since then, WSF has instituted cost cutting measures, staff reductions and service cuts to address budget shortfalls. In January of 2001, the Joint Legislative Task Force on Ferries (JTFF) recommended that fares be gradually increased over a 6-year period to eventually cover 80% of ferry system operating costs. The current recommendation is the second step in a multistep process designed to meet the Legislative guidelines established by the JTFF and to stabilize the Ferry SystemÕs operating budget.

For More Information Contact:

Patricia Patterson, Public Affairs Director, 206.515.3410
Ray Deardorf, Planning Director, 206.515.3491