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Yesterday, Sound Transit’s board adopted a $1 billion budget for 2012, which includes $733 million for capital projects and $199 million for delivering train and bus services.

Budget priorities include continued responses to the recession’s impact on funding for completing the Sound transit 2 ballot measure that voters approved in 2008, Sound Transit officials said in a prepared statement.

Capital spending will include $461 million for Link light rail and $176.5 million for Sounder commuter rail.

The agency receives most of its funding through sales tax revenues and a smaller percentage from the motor vehicle excise tax and car rental tax within the Sound Transit District. In 2012, Sound Transit officials estimate the agency will collect $557 million from retail sales and use tax, $131 million from federal grants, $72 million from the motor vehicle excise and rental car tax, and $44.2 million from fare revenue.

Plans in 2012 include: completing major tunneling operations on the 3.1-mile University Link light-rail expansion between downtown Seattle and University of Washington; beginning early construction work on the North Link light-rail expansion from UW to Northgate; selecting a design/build contractor for the South Link extension from Sea-Tac Airport to South 200th Street; opening the Sounder commuter-rail extension between Tacoma and Lakewood; building Mukilteo Sounder station’s south platform and permanent Tukwila Sounder Station; maintaining existing services and assets; and continuing environmental studies to expand light-rail from Northgate to Lynwood.

In other action, the board directed Sound Transit staff to begin environmental studies to identify a light-rail route along the Interstate 5 corridor as part of a plan to expand transit to Snohomish County. Construction is planned to begin in 2018.

The board also elected Pierce County Executive Pat McCarthy to serve as chairman for the next two years, starting Jan. 1., and elected two new vice chairs: Snohomish County Executive Aaron Reardon, the outgoing chair, and board member Julia Patterson.