HB 2858

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:

Technology & Economic Development

Title: An act relating to allowing excess local infrastructure financing revenues to be carried forward.

Brief Description: Allowing excess local infrastructure financing revenues to be carried forward.

Sponsors: Representatives Johnson, Chandler, Appleton, McCabe and Haler.

Brief History:

Committee Activity:

Technology & Economic Development: 1/30/18, 1/31/18 [DP].

Brief Summary of Bill

  • Allows certain excess revenues from local public sources, under the Local Infrastructure Financing Tool program, to be carried forward and used to calculate the state's contribution in subsequent years.


Majority Report: Do pass. Signed by 16 members: Representatives Morris, Chair; Kloba, Vice Chair; Tarleton, Vice Chair; Smith, Ranking Minority Member; DeBolt, Assistant Ranking Minority Member; Doglio, Fey, Harmsworth, Hudgins, Manweller, McDonald, Nealey, Slatter, Steele, Wylie and Young.

Minority Report: Without recommendation. Signed by 1 member: Representative Santos.

Staff: Kirsten Lee (786-7133).


In 2006 the Local Infrastructure Financing Tool (LIFT) program was created and made available to certain local governments for financing local public improvement projects intended to encourage economic development or redevelopment. As part of the LIFT program, a sponsoring local government (a city, town, county, port district, or federally recognized Indian tribe) creates a "revenue development area" from which annual increases in revenues from local sales and use taxes and local property taxes are measured. These increases in revenues and any additional revenues from other local public sources are then used to pay for public improvements in the revenue development area and are also used to match a state contribution.

State funding for the LIFT program is provided through a credit against the state sales and use tax. The sponsoring local government is allowed to retain a certain amount of state sales and use tax revenue that would otherwise be deposited in the State General Fund. The maximum state contribution that a sponsoring local government may receive each year is limited to the lesser of:

The local funds and state contribution are used for the payment of bonds issued for financing local public improvements within the revenue development area. The public improvements may be financed on a pay-as-you-go basis.

The maximum statewide contribution for all of the LIFT projects is capped at $7.5 million per year. Nine projects have been awarded state contributions under the LIFT program. The projects are located in Bellingham, Bothell, Everett, Federal Way, Mount Vernon, Puyallup, Vancouver, Yakima, and Spokane County.

The application process for the LIFT program is closed. The expiration date for the LIFT program is June 30, 2044.


Summary of Bill:

Under the LIFT program, the sponsoring local government may carry forward revenues from local public sources dedicated to the payment of the public improvements or bonds in the previous calendar year that are in excess of the project award. These excess revenues may be used in later years for the purpose of calculating the state's contribution.

Outdated expiration dates are repealed.


Appropriation: None.

Fiscal Note: Requested on January 26, 2018.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) At times communities need help with economic development and that was the purpose of creating the Local Infrastructure Financing Tool (LIFT) Program. This bill would solve a major issue regarding the state match to local funds under the LIFT program by allowing excess local funds to be carried forward. This would allow cities who have large up-front project investments to move forward with continued state dollar matching funds past the first year of the project, and would align with local financing law and the Local Revitalization Financing Program.

(Opposed) None.

Persons Testifying: Representative Johnson, prime sponsor; and Susie Tracy, City of Yakima.

Persons Signed In To Testify But Not Testifying: None.