Transportation Benefit Districts (TBDs) are an important mechanism for local governments in Washington State to fund and maintain transportation-related projects. These districts provide cities and counties with a way to address infrastructure needs without relying solely on state and federal funding.

A Transportation Benefit District (TBD) is a quasi-municipal corporation authorized by Washington State law, specifically under RCW 36.73. Local governments can establish TBDs to generate revenue dedicated to funding transportation improvements. These improvements include a wide range of projects aimed at maintaining and enhancing local transportation infrastructure.

A TBD can encompass a whole city, a portion of a city, or even multiple jurisdictions if neighboring municipalities choose to collaborate. This flexibility allows local governments to create a funding mechanism tailored to their specific needs and challenges, from urban centers to rural areas.

Once a TBD is established, the local government can use several tools to generate revenue specifically for transportation projects. Common revenue-generating mechanisms include:

• Vehicle Licensing Fees: A TBD can impose an annual fee on vehicle registrations within the district.
• Sales and Use Taxes: TBDs can levy an additional sales tax of up to 0.2% for transportation purposes, but this requires voter approval.
• Property Taxes: TBDs can propose property tax levies, usually in the form of special property tax assessments, but this also requires voter approval.
• Other local Funding Mechanisms: In addition to the above, TBDs can issue bonds, apply for grants, or even create tolls in specific circumstances.

Funds collected through TBDs are restricted to transportation-related projects. These projects can vary widely but must fall within the scope of transportation improvements as defined by Washington State law. Some common uses of TBD funds include:

• Road and Street Maintenance: Local governments can use TBD funds to maintain and repair existing roads, including filling potholes, repaving streets, and improving road safety.
• Public Transit Support: TBD revenue can go towards improving public transportation, including funding for buses, park-and-ride facilities, and transit stops.
• Sidewalks and Pedestrian Safety: TBDs can fund projects that enhance walkability, such as building sidewalks, installing pedestrian crossings, and ensuring ADA (Americans with Disabilities Act) compliance.
• Traffic Flow Improvements: TBDs can be used to manage congestion by funding projects that improve traffic flow, such as the addition of turn lanes, traffic signal optimization, and the creation of roundabouts.
• Bicycle Infrastructure: Funds can support the development of bike lanes, trails, and other bike-friendly infrastructure.

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Transportation Benefit Districts are critical to local governments in Washington State for several reasons. They allow cities and counties greater autonomy in identifying transportation needs. They also create a dedicated and flexible funding stream for funding transportation improvements, helping to bridge the gap between other sources of funding. Well-maintained transportation infrastructure is essential for economic development and because TBD funds are restricted to transportation projects, they increase accountability in local government spending.

Transportation Benefit Districts are a vital funding mechanism for Washington's cities and counties, providing them with the flexibility and resources to address diverse transportation challenges. With dedicated funds for transportation projects, TBDs ensure that local governments can keep roads, bridges, and transit systems safe, efficient, and up to date.

In a state where population growth and economic development are putting pressure on infrastructure, TBDs are an essential part of the solution. They empower communities to plan and fund transportation improvements that directly impact residents' daily lives, making TBDs a cornerstone of local government finance and planning in Washington State.

Currently the City of Richland has a Transportation Benefit District. The City of Kennewick just approved one. The City of Pasco is considering one to help tackle it's protentional budget shortfall. West Richland does not currently have a TBD. 

The U.S. Chamber of Commerce has awarded the Tri-City Regional Chamber of Commerce (TCRCC) with its designation of Accredited with 5 Stars for its sound policies, effective organizational procedures, and positive impact on the community.

“Chambers of commerce that achieve an accreditation designation are truly leaders in their industry,” said Raymond P. Towle, U.S. Chamber Vice President, Federation Relations and IOM.  “This rigorous review includes all aspects of a chamber’s policies, operations, and programming. When chambers of commerce earn the distinction of becoming accredited, it is a mark of excellence for the organization, its staff, and its leadership. Accredited chambers are recognized for their ability to serve as a resource to their region’s businesses while maintaining transparent governance practices, sound financial controls, safe work environments, effective communications, and value in programming. They are commended for their continued advocacy of free enterprise, and for their commitment to serving members and their local businesses.”

The purpose of the U.S. Chamber's Accreditation Program is to facilitate continuing excellence in the chamber industry and to foster a pro-business environment across America. In order to receive accreditation, a chamber must meet minimum standards in their operations and programs, including areas of governance, government affairs, communications, and technology. This extensive self-review can take 6-9 months to complete.

“Achieving the prestigious 5-Star Accreditation from the U.S. Chamber of Commerce is a tremendous honor for our organization and a testament to the unwavering commitment of the Chamber staff and Board of Directors,” said Lori Mattson, TCRCC President & CEO. “This recognition underscores our dedication to fostering a thriving business environment, supporting our community, and upholding the highest standards of excellence in everything we do. We look forward to continuing our mission to drive economic growth and advocate for the success of our local businesses with the same passion and integrity that earned us this distinction.”

Local chambers are rated Accredited, 3-Stars, 4-Stars, or 5-Stars. State chambers are recognized as either Accredited State Chamber or Accredited State Chamber with Distinction. The final determination is made by the Accrediting Board, a committee of U.S. Chamber board members.

Thank you to everyone who attended the State of the Cities luncheon on November 20. The mayors of Kennewick, Pasco, Richland, and West Richland shared updates from their cities and shed light on the innovative strategies and key initiatives that will shape the Tri-Cities in the years to come.

Congratulations to Perch Cantina on their ribbon cutting ceremony on Wednesday, November 20. The new restaurant is located at 592 Columbia Point Drive in Richland. Learn more about Perch and view their menu: ​https://perchcantina.com/.

Congratulations to the City of Pasco on the ribbon cutting celebration for their new Zone 3 Water Storage Reservoir! This $17 million infrastructure project is designed to ensure a reliable drinking water supply for residents and support the city's growing population. The new reservoir is located at 6701 Road 90.

Congratulations to DBD, Inc. on the ribbon cutting ceremony for their new office in Richland! The office is located at 2920 George Washington Way, Ste. 202. 

The Joint Legislative Audit and Review Committee (JLARC) recently conducted a review of the state's Paid Family and Medical Leave (PFML) program, which is managed by the Employment Security Department (ESD). The program provides paid leave for both public and private sector employees, financed by premiums from employers and employees. JLARC’s preliminary report emphasized persistent financial difficulties, with program expenses exceeding revenues.

Here is a quick summary of the preliminary report:

The Paid Family and Medical Leave (PFML) program in Washington, established in 2017, provides paid leave to employees for various situations like serious health conditions or bonding with new children. Managed by the Employment Security Department (ESD), the program allows eligible employees those who have worked at least 820 hours in the past yearto claim up to 12 weeks of leave, increasing to a maximum of 18 weeks for multiple qualifying events within a year. Benefits and premiums are determined by a statutory formula, with employees and employers contributing based on gross wages, but the current premium rate is not sufficient to cover expenses.
 
As of December 2023, ESD had collected $4. 5 billion in premiums while paying out $4. 2 billion in benefits over more than 700,000 claims. However, financial forecasts indicate that the program may face deficits in upcoming years, with expenses likely surpassing revenues in three out of the next five years. A consulting actuary recommended a more proactive rate-setting approach and maintaining a financial reserve to enhance the program's sustainability.
 
The program has seen a significant increase in application rates, from 168,000 in 2020 to 259,000 in 2023, with a growing approval rate for claims. Payments are calculated based on employee wages relative to the state's average weekly wage. The maximum weekly benefit reached $1,456 in 2024, with an average payment of $878.
 
Despite the successful establishment of core functions, ESD has yet to implement all program requirements, particularly in project prioritization and employer compliance audits. Issues remain with timely customer service; during high call volumes, many calls go unanswered, and ESD struggles to approve benefit payments in a timely manner.
 
The legislative auditor recommends adopting a forward-looking rate-setting strategy, implementing stricter compliance audit procedures, creating performance measures for customer service, and increasing transparency in project prioritization. Overall, while the PFML program has made noteworthy progress, it faces financial sustainability challenges and operational improvements need to be addressed to better serve employees and employers alike.
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The Paid Family and Medical Leave program in Washington state plays a vital role in supporting employees during critical life events. However, it faces significant challenges related to financial sustainability, program administration, and customer service. Legislative recommendations include adopting a proactive rate-setting approach, maintaining sufficient reserves, enhancing auditing procedures for employer compliance, and implementing performance measures to improve service quality. Addressing these recommendations will help ensure that the PFML program remains effective and sustainable for the future.
 
You can review the complete review the preliminary report here. The final report is expected to be released in early 2025. JLARC is a Washington state legislative committee that works to improve state government. JLARC’s nonpartisan staff research and complete audits as directed by the Legislature. You can learn more about JLARC here. 
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Congratulations to My Garden Over Floweth on their ribbon cutting celebration on Friday, November 15! Their new space in Richland is located at 953 Stevens Dr., Ste. C.

The U.S. Chamber of Commerce has awarded the Tri-City Regional Chamber of Commerce with its designation of Accredited with 5 Stars for its sound policies, effective organizational procedures, and positive impact on the community. 

“Chambers of commerce that achieve an Accreditation designation are truly leaders in their industry” said Raymond P. Towle, U.S. Chamber Vice President, Federation Relations and IOM. “This rigorous review includes all aspects of a chamber’s policies, operations, and programming. When chambers of commerce earn the distinction of becoming Accredited, it is a mark of excellence for the organization, its staff, and its leadership. Accredited chambers are recognized for their ability to serve as a resource to their region’s businesses while maintaining transparent governance practices, sound financial controls, safe work environments, effective communications, and value in programming. They are commended for their continued advocacy of free enterprise, and for their commitment to serving members and their local businesses."

The purpose of the U.S. Chamber's Accreditation Program is to facilitate continuing excellence in the chamber industry and to foster a pro-business environment across America. In order to receive Accreditation, a chamber must meet minimum standards in their operations and programs, including areas of governance, government affairs, communications, and technology. This extensive self-review can take 6-9 months to complete. 

“Achieving the prestigious 5-Star Accreditation from the U.S. Chamber of Commerce is a tremendous honor for our organization and a testament to the unwavering commitment of the Chamber staff and Board of Directors,” said Lori Mattson, TCRCC President & CEO. “This recognition underscores our dedication to fostering a thriving business environment, supporting our community, and upholding the highest standards of excellence in everything we do. We look forward to continuing our mission to drive economic growth and advocate for the success of our local businesses with the same passion and integrity that earned us this distinction.”

Local chambers are rated Accredited, 3-Stars, 4-Stars, or 5-Stars. State chambers are recognized as either Accredited State Chamber or Accredited State Chamber with Distinction. The final determination is made by the Accrediting Board, a committee of U.S. Chamber board members. 

Business leaders at the Growth, Leader, and Stakeholder levels of Chamber membership attended an exclusive Breakfast with the Chair event on Thursday, November 14, in the Bechtel Board Room at the Tri-Cities Business & Visitor Center.

Breakfast with the Chair is an event that connects Tri-City Regional Chamber leadership with our largest investors. The conversations held during the roundtable discussion help to steer the Regional Chamber’s small business, workforce, legislative, and community development initiatives. 

If you would like to attend the next Breakfast with the Chair event, consider upgrading your membership level. Contact Tracie Boothe, Membership Director, at [email protected] or 509-491-3236 for more information.