Spokane Transit Authority - History

History

Transit service history in the Spokane area began in 1883 with several independent, private companies. In 1922, the Spokane United Railway Company was formed, consolidating holdings from several companies including Washington Water Power (later, Avista Corporation), creating a unified electric trolley and streetcar system.

The rail system was gradually phased out through the 1930s to make way for motorized coaches. Bus ridership reached a peak in the Spokane area in 1946 with 26 million passengers.

The system was purchased by Spokane City Lines Company (part of National City Lines) in 1945, and later turned over to the City of Spokane in 1968.

Upon acquisition by the city, funding for the system was derived from a household tax. After the formation of the Public Transportation Benefit Area in 1980, and the establishment of a 0.3% sales tax within the area on April 1981, services were provided by Spokane Transit.

At the urging of the downtown business community, Spokane Transit built a bus depot in 1994 to replace the Howard and Riverside model which required that buses park along many downtown streets for passengers to make transfers. Not only was this uncomfortable for passengers, who were forced to wait for buses in the weather, but it also made the streetside businesses less accessible to customers. The bus depot, known as "The Plaza" was constructed as an indoor urban park at a cost of approximately $20 million. With its high, daylight ceiling, imported Italian tile, and cougar statues leaping over a waterfall between the up- and down- escalators, it generated great controversy.

In addition to the local sales tax, a major revenue source was Washington State's motor vehicle excise tax which provided matching funds. After statewide initiative I-695 was passed in 1999, the legislature eliminated the matching funds even though the initiative was later found unconstitutional. See also List of Washington initiatives.

The period after the elimination of the motor vehicle excise tax was a time of unprecedented change for Spokane Transit. As its undesignated cash reserves balance fell, Spokane Transit attempted to increase its tax authority from 0.3% to 0.6% in September 2002, but it was rejected by voters 48% to 52%.

Spokane Transit created task force to study changes that could be made to regain the support of the community, while simultaneously preparing for a potential 40% service decrease. After increased public participation, and 69% voter approval, Spokane Transit increased the sales tax from 0.3% to 0.6% in October 2004, subject to a sunset of the tax in 2009. In May 2008, voters reauthorized the additional 0.3% sales tax with no sunset clause.