2024 Ferry Capital Improvement chart

Budgets: Capital vs Maintenace

On page 23 of the 2025 Draft Ferry Fare Target Report, something doesn’t add up. The category “4910-Miscellaneous” shows $139,744 in actual 2024 expenditures, nearly identical to the reported budget of $139,902. Looks tidy, right? Zero percent variance. Case closed.

But flip back to the 2025 Adopted Expense Budget for 2024, and the “Modified Budget” for that same line item was $62,902. Half of what was spent. And here’s the kicker: that difference traces back to a recurring $7,000 monthly expense to Anchor Operating System — an $84,000 total — the exact amount Skagit County agreed to pay for hardware, licensing, and setup of the Guemes Island Ferry’s new electronic ticketing system.

Here’s why that matters:
This wasn’t some surprise cost. The electronic ticketing project has been listed for years in both the County’s 6-year Transportation Improvement Plan (TIP) and the 14-year Ferry Capital Improvement Plan (CFCIP). County staff publicly described the project as a capital improvement, eligible for Federal Ferry Boat Program funds.

So why, in 2024, does this capital project suddenly vanish from the capital reports and quietly show up in the operations budget as “miscellaneous”?

Because here’s the truth: moving capital expenses into operations and maintenance (O&M) reporting isn’t just a clerical choice. It has consequences. Those O&M numbers get reported directly to WSDOT and determine our Ferry Deficit Distribution. Inflate O&M with capital costs, and you risk skewing fare recovery targets, future state funding, and public trust.

And let’s be honest — trust is already in short supply.

This raises bigger questions:

  • When exactly was the decision made to shift electronic ticketing out of capital and into O&M?
  • Why wasn’t the public informed, when earlier reports clearly showed federal funding lined up?
  • And what else in our ferry system’s expense reports might be hiding under “miscellaneous” that doesn’t belong there?

Here’s what we need right now: transparency and accountability. No more burying major projects in vague line items. No more last-minute reclassifications. And no more asking ratepayers to shoulder higher fares when reporting isn’t clear or consistent.

Because the people of Skagit County are not asleep at the wheel. We see the numbers. We see the shifts. And we will keep asking until we get straight answers.

This isn’t just about a ferry ticketing system. It’s about trust. It’s about integrity. And it’s about making sure every dollar spent on our ferry system — whether capital or operations — is exactly where it’s supposed to be.