HOUSE BILL REPORT

ESSB 6055

BYSenate Committee on Ways & Means (originally sponsored by Senators Owen and Lee)

Authorizing the office of financial management to review and revise capital budget plans.

House Committe on State Government

Majority Report:  Do pass.  (8)

      Signed by Representatives H. Sommers, Chair; Peery, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Sayan and Taylor.

House Staff:Pam Madson (786-7135)

AS REPORTED BY COMMITTEE ON STATE GOVERNMENT APRIL 2, 1987

BACKGROUND:

Currently, formalized procedures do not exist for interagency review and coordination of capital budget plans and leases.  Capital projects are proposed by individual agencies or institutions of higher education.  The Office of Financial Management reviews the budgeting for all capital projects.

The State Capitol Committee, consisting of the governor, lieutenant governor, and commissioner of Public Lands, approves and oversees all capital improvements on the capitol grounds but not in the remainder of Thurston County.

SUMMARY:

The Office of Financial Management (OFM) is authorized to review and revise agency capital budget plans, including lease and lease development projects, through interagency conferences.  These reviews will attempt to:  (1) avoid duplication; (2) create economies of scale in project costs; and (3) award single, rather than multiple, contracts.

The State Capitol Committee must approve all capital projects in Thurston County.

After July 1, 1987, OFM shall start interagency reviews of capital budget plans including projects approved in the 1987-89 biennial budgets.  OFM shall submit an annual report to the legislature on the results of this program.

Fiscal Note:      Requested March 26, 1987.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Senator Brad Owen, prime sponsor of original bill.

House Committee - Testified Against:      Paul Donohue, Department of Social and Health Services.

House Committee - Testimony For:    All agencies' capital projects need to be coordinated to consider savings and efficiency in construction and leasing.  The State Capital Committee should be involved in review of leases as well as construction of administrative buildings in Thurston County.

House Committee - Testimony Against:      The State Capitol Committee's review of capital projects and leases should not include higher education and corrections facilities in Thurston County.