HOUSE BILL REPORT

SB 6641

As Amended by the House

BYSenators Craswell, Vognild, Bailey, Owen, Smitherman and Metcalf

Providing for armed forces shipboard population adjustment.

House Committe on State Government

Majority Report:  Do pass with amendment.  (8)

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

House Staff:Ken Conte (786-7135)

AS PASSED HOUSE MARCH 2, 1988

BACKGROUND:

The State of Washington distributes state revenue sharing funds to incorporated cities and towns on a quarterly basis.  The allocation of these funds is based upon population.  These funds, derived from gas tax, motor vehicle excise taxes, liquor profits, and liquor taxes, amount to approximately $52 per person per year in every incorporated city and town in the state.

In order to determine the appropriate allocation of revenue sharing funds, the Office of Financial Management (OFM) determines the population of each city and town in the state. The determination of population is made on an annual basis. Specifically, population determinations are made on April 1, determinations are submitted to the agencies which distribute funds on June 30, and those determinations are used to calculate the allocations for the following January, April, July, and October.

Cities and towns which incorporate during the course of the year will receive subsequent allocations based upon the population count submitted on their records of incorporation.

With the exception of annexations, if the population of a city or town changes, the allocation of revenue sharing funds can not be adjusted until a new population estimate is made on April 1 and the new allocation is determined the following January.  In situations where an annexation has occurred, existing law provides for quarterly revisions to both the population estimate and the allocation.

The city of Bremerton experiences significant changes in population when naval vessels are stationed at the naval shipyards.  For example, it is estimated that the population of Bremerton increases by as much as 6,000 people when an aircraft carrier is stationed at the shipyards.  However, the City's allocation of revenue sharing funds can not be modified to reflect the population increase until a new population estimate is made during the following April and the new allocation takes effect the following January.

SUMMARY:

Resident naval shipboard, on-base, and military dependent populations in the cities of Bremerton and Everett are to be determined by the Office of Financial Management on a quarterly basis.

These population determinations are to be used to revise the total population determination for the two cities and to make quarterly adjustments to the cities' revenue sharing fund allocations.  Population counts made on the first day of each quarter are to be used to adjust the total population for the following quarter.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Senator Craswell, prime sponsor; Kathleen McCluskey, City of Bremerton; and Teresa Lowe, Office of Financial Management (provided technical assistance and information).

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This bill allows quarterly adjustments in the allocation of state revenues to Bremerton and Everett to account for fluctuations in military personnel and their dependents.  Currently, the population of Bremerton changes significantly when a large ship is in port and yet it can take up to one and one-half years before the allocation is adjusted.  This bill allows Bremerton and Everett to get their proper allocation of revenue sharing funds when they need it.

House Committee - Testimony Against:      None Presented.