In this special report, “Staying Afloat: Challenges Facing Washington State Ferries,” TVW’s Jessica Gao explores the current challenges of one of the world’s largest ferry systems, which transports more than 22 million riders a year through nine marine highway routes in the Puget Sound.  It’s a critical transportation link for commuters and commercial traffic, and it’s widely considered one of the biggest tourism draws for the state.  And yet, ferry advocates say operations, maintenance and construction are persistently underfunded; fares have skyrocketed over the past decade while ridership has declined; and ferry administrators have been forced to fight off a series of crises over the past decade.

To understand how those issues came about, we’ll take our viewers back to the late 1800s to see how the Puget Sound marine highway developed.  From its origins as a disjointed fleet of hundreds – perhaps thousands – of boats known as the “Mosquito Fleet,” to the dominance of a single private ferry company known as the Black Ball Line, to the state’s decision to take over the ferry system in 1951, we’ll examine how the ferry system became what it is today.

And then we’ll look to the future and ask tough questions:  How can policymakers keep the ferry system afloat? Can they find funding to replace more than half the fleet over the next three decades? Should the state be in the ferry business in the first place? And if state leaders can’t provide more predictability over services and fares for customers or improve its public image, will ferry riders abandon the system all together?

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To find out more about the problem, click here.

To watch exclusive web interviews, click here.

And to explore links related to ferries, click here.

More About the Problem

The funding problem: in 1999, Washington voters approved Initiative 695, a measure that eliminated the state’s motor vehicle excise tax – a tax imposed on the percentage of a vehicle’s estimated value. While the Washington State Supreme Court ultimately struck down the initiative, the legislature came back a year later and put it into statute. The car tab tax is now a flat fee of $30. The MVET, as it was known, was a critical funding source for ferries. With its repeal, the governor’s office estimates the system has lost $1.2 billion over a decade. Ferry officials say the projected shortfall over the next 10 years is nearly $1 billion more.

To fill the funding gap for ferries since the loss of the MVET, the legislature has swiped money from other transportation programs to keep the system afloat. Fares have also increased – in 2001 alone, tickets soared 20 percent. Through fares, ferry riders pay 70% of the daily operating costs of running the ferries. However, starting in 2013-2015 budget cycle the ferry account is in the red, for both operating and construction costs.

Since the loss of the MVET, there’s been a drop in service.  It’s the result of both budget constraints and dwindling ridership. Ridership has dropped 16% systemwide since a peak of 26 million riders in 1999. Here’s a look at the decline in service hours – most of which reflects the slashing of commuter runs.

Fares pay for about 70% of daily operational costs of running the ferries.  For comparison, a typical transit system recovers less than 30% of its costs through ticket sales. On October 1, 2011, fares will rise another 2.5%, plus riders will pay an additional $0.25 surcharge on each ticket to help fund a new 144-car ferry. For more information on exact fares, visit this page.

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Web Exclusive Interviews

• Transportation Secretary Paula Hammond
  

Within months of taking over the state Transportation Department, Secretary Paula Hammond pulled four 1920s-era vessels from service because of corrosion in the hulls. The decision in November 2007 left the Port Townsend-Coupeville route without vehicle service for two winter months. Transportation leaders scrambled to build new boats to fill the service gap. Two 64-car ferries are now running the route, and a third is on its way. In an in-depth interview, I questioned Secretary Hammond about the boat-building process, as well as funding and management issues.

• WSF Director David Moseley
  

WSF director David Moseley took over the ferry system in February 2008 – just months after the decision to yank the old boats, known as the Steel Electrics. His tenure has included one high-profile challenge after another. In addition to heading the agency while it scrambled to build new boats, he had to answer to media reports alleging waste and abuse with labor contracts. Following one of his weekly public outreach events at a Bainbridge Island church, I sat down with Moseley to discuss reforms and public image.

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Links to Other Resources

We reference several reports/studies throughout our special report. You can dive into the research for yourself by following these links. We’ve also provided supplemental information about some of our interviewees.

• At the Kitsap County Historical Museum, you can learn about the traveling exhibit for Mosquito Fleet
• Puget Sound Ferries is a book written by Carolyn Neal, a historian featured in our report
• Here’s a quick history of the Mosquito Fleet
• To learn more about the unions featured in our report, go here and here
• The Washington Policy Center, a free-market think tank, has issued a series of recommendations for reforming the ferry system, which you can find here.
• There have been a number of reports, examining new sources for transportation funding, although lawmakers have yet to say which sources they’d prefer. Here’s one of the most recent reports, outlining some of their options.
• Here‘s a WSDOT report comparing Washington State Ferries to other ferry systems around the country and world.
• Washington’s ferry system is far bigger than any other ferry system in the country, but this report from the Passenger Vessel Association compares Washington with the rest. WSF is planning to or has already implemented many of the recommendations.
• Another report by the PVA looks at how the system is managed.
• Here’s KING 5′s Waste on the Water series.
• The Marine Employees Commission Salary conducts a salary survey, comparing WSF wages and benefits to other maritime jobs on the west coast.
• There are other ferry businesses running in the Puget Sound. This website provides detailed information about the vessels serving both the marine highways and the privately run routes. It also has information about boats in other west coast ferry systems.
• The governor’s Connecting Washington Task Force is holding meetings through the end of the year. Here’s a look at the work they’ve accomplished and what’s ahead.
• Penn Cove Shellfish played a prominent role in our piece, as a business that relies on ferries to move its product to market within 24 hours of harvest. If you’re looking for a way to get your hands on those fresh mussels, you can find the information here.
• We featured a lot of the scenery of the San Juan Islands. If you’ want to plan a trip, go here.
• The ferry schedules change seasonally. For the most up-to-date schedule, visit the schedules page on the WSF web site.
• WSF provides a concise history of the state’s involvement in the ferry system. You can find it here.

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