FINAL BILL REPORT

SHB 1102

PARTIAL VETO

C 413 L 19

Synopsis as Enacted

Brief Description: Concerning the capital budget.

Sponsors: House Committee on Capital Budget (originally sponsored by Representative Tharinger; by request of Office of Financial Management).

House Committee on Capital Budget

Senate Committee on Ways & Means

Background:

Washington operates on a biennial budget cycle. The Legislature authorizes expenditures for capital needs in the State Omnibus Capital Appropriations Act (Capital Budget) for a two-year period, and authorizes bond sales through passage of a bond bill associated with the Capital Budget to fund a portion of these expenditures. Over the past five biennia, on average 60 percent of the Capital Budget was financed by these state-issued general obligation bonds, and the balance is funded by dedicated accounts, trust revenue, and federal funding sources. The primary two-year budget is typically passed in the odd-numbered years, and a supplemental budget making adjustments to the two-year budget is often passed during the even-numbered years. The 2019–21 Capital Budget covers the period from July 1, 2019, through June 30, 2021.

The Capital Budget includes appropriations for the acquisition, construction, and repair of capital assets such as state office buildings, prisons, juvenile rehabilitation centers, residential habilitation centers, mental health facilities, military readiness centers, and higher education facilities. The Capital Budget also funds a variety of environmental and natural resource projects, parks and recreational facilities, public kindergarten through grade 12 school construction, and grant and loan programs that support housing, public infrastructure, community service facilities, and art and historical projects.

Summary:

The 2019–21 Capital Budget authorizes new appropriations totaling $4.9 billion, of which $3.2 billion is financed with state general obligation bonds. It authorizes state agencies to enter into a variety of alternative financing contracts totaling $204 million.  It also includes reappropriations totaling $3.8 billion, of which $2.5 billion is bonds, for uncompleted projects approved in prior biennia.

The 2019 Supplemental Budget reduces appropriations by $39.8 million and reduces reappropriations by $10.7 million in the 2017–19 fiscal biennium.

Additional detail can be found at fiscal.wa.gov.

Votes on Final Passage:

Partial Veto Summary: The Governor vetoed the provision requiring the Department of Commerce, in administering the Housing Trust Fund, to prioritize loan deferment for projects serving at or below 30 percent area median income.  Additionally, the Governor vetoed the requirement that the Public Works Board collaborate with the Community Economic Revitalization Board on the Universal Communications Account and the Statewide Broadband Account.  The Governor vetoed the requirement that Department of Enterprise Services complete the Cherberg Building roof replacement before the Insurance Building roof and the specific work related to the Legislative Building exterior preservation cleaning and Legislative Building cleaning projects.  The Governor vetoed the funding for the Port of Port Angeles storm water project as it duplicative of a project funded in the 2019-21 operating budget.