FINAL BILL REPORT

ESSB 6095

PARTIAL VETO

C 298 L 18

Synopsis as Enacted

Brief Description: Concerning the supplemental capital budget.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Frockt, Mullet, Liias, Keiser and Saldaña; by request of Office of Financial Management).

Senate Committee on Ways & Means

Background: The programs and agencies of state government are funded on a two-year basis, with each fiscal biennium beginning on July 1 of odd-numbered years. The Capital Budget generally includes appropriations for the acquisition, construction, and repair of capital assets such as land, buildings, and other infrastructure improvements. Funding for the Capital Budget is primarily from state general obligation bonds, with other funding derived from various dedicated taxes, fees, and state trust land revenues.

Summary: The enacted 2017-19 Capital Budget (SSB 6090) appropriated $2,719 million from state bond proceeds from the net bond authorization (E2SHB 1080) of $2,930 million. The remaining bond capacity was $211 million.

ESSB 6095 is the 2018 supplemental Capital Budget. This proposal makes new bond appropriations of $198 million and total appropriation of $414.7 million. The bond capacity remaining for the 2019 supplemental Capital Budget is $13.4 million.

The major bond investments include:

Public Schools. The supplemental budget makes the following increases totaling $46.1 million:

• School Construction Assistance Program - $15.8 million;

• Distressed Schools - $24.3 million; and

• Small Rural District Modernization Grants - $6.0 million.

Higher Education. Funding is provided for designs of major projects at the State Board for Community and Technical Colleges (SBCTC), including:

• Cascadia Center for Science and Technology - $3.4 million;

• Everett Community College: Learning and Resource Center - $4.0 million;

• Grays Harbor College: Student Services and Instructional Building - $4.2 million;

• North Seattle Library Building Renovation - $3.5 million; and

• Walla Walla Science and Technology Building Replacement - $1.2 million.

Savings totaling $17.5 million are taken for Facility Repairs, Minor Works, and Site Repairs. The budget authorizes an additional $62 million in alternative financed projects at the SBCTC.

Behavioral Health. The supplemental budget makes investments in state mental hospitals and community-based facilities, including:

• additional capacity at Western and Eastern State Hospitals and funding to address the System Improvement Agreement with the federal Centers for Medical Services - $27 million;

• Behavioral Health Community Capacity competitive grants - increased by $25.3 million; and

• Behavioral Rehabilitation Services Capacity Grants - $2 million.

Local and Community Projects. The Department of Commerce is provided $40.5 million to make grants to local governments and nonprofit organizations statewide for a wide range of 95 community-based projects. In addition, $5 million is provided for the Community Economic Revitalization Board (CERB) and $5 million is provided for the CERB-administered Broadband Program.

Natural Resources. State parks projects are funded at $4.8 million above the 2017-19 enacted capital budget. The Aquatic Land Enhancement Account is provided $10.6 million; and 21 additional projects will be funded.

Votes on Final Passage:

Partial Veto Summary: Department of Ecology related to Water Availability.  The enacted biennial budget—SSB 6090—appropriated $20 million from the Watershed Restoration and Enhancement Bond Account.  The supplemental budget directed funding to the following projects:

• $2,500,000 for the Dungeness off-channel reservoir;

• $900,000 for the Methow Valley piping, pressurization, and conveyance system consolidation project; and

• $3,000,000 for the Colville River watershed plan update and water resource mitigation and enhancement project.

The subsections affecting these specific projects were vetoed. However, the Department of Ecology retains $20 million in overall authority because the Watershed Restoration and Enhancement Bond Account was established as a non-appropriated account.

Department of Transportation related to Aviation Revitalization Loans.  The enacted budget provided $5 million for Aviation Revitalization Loans.  The supplemental budget reduced this amount to $2.5 million and made language changes to the provision associated with SHB 1656.  SHB 1656 and two sections of the capital budget related to the bill were vetoed.