FINAL BILL REPORT

                  HB 2295

                          C 2 L 92

                     Synopsis As Enacted

Brief Description:  Changing the capital appropriation for Lake Washington Technical College.

By Representatives H. Sommers, Miller, Jacobsen, Schmidt, May, Basich, Ogden, Betrozoff, Spanel, Cantwell, Van Luven, Forner, Rasmussen and Ferguson.

House Committee on Capital Facilities & Financing

Senate Committee on Ways & Means

Background:  In 1986, Lake Washington Vocational Technical Institute received voter approval for a local bond issue and approval from the State Board of Education for construction of a new classroom, administrative, and laboratory building.  Construction of the new building began in 1988 and is scheduled to be completed in the summer of 1992. The project was to be completely financed by a combination of local school district bonds and state school construction money allocated by the State Board of Education.

Legislation enacted in the 1991 session of the Legislature transferred Lake Washington Vocational Technical Institute from the authority of the local school district to the State Board of Community and Technical Colleges.  As a result of the transfer, the former Lake Washington Vocational Technical Institute is no longer eligible for local school district bond money or the $7.9 million of state school construction money allocated by the State Board of Education.  The 1991-93 state capital budget anticipated the transfer of authority by appropriating $5.8 million to replace the state school construction money, but at the date of transfer the project was not as far along as expected.  This miscalculation of the construction schedule resulted in a funding shortfall of $4.4 million:  $2.1 million to pay the building contractor for work underway, $1.3 million for classroom furniture and equipment, and $1 million for street improvements and other required costs.

The State Board of Education has agreed to pay $1.1 million of the shortfall for construction costs completed prior to September 1, 1991.  This $1.1 million payment and an additional $1 million are needed to cover the current construction contract obligations of the state and Lake Washington Technical College.

The additional $1 million for building construction is needed immediately, as the available capital money may be exhausted prior to enactment of the supplemental capital budget.  If additional state money is not approved by February 1992, the college will be faced with a costly construction shutdown and legal action.  The balance of the project shortfall can be addressed in the 1992 supplemental capital budget because the expenditures are not subject to the same February deadline.

Summary:  The 1991-93 biennial capital budget is amended to change the name of Lake Washington Vocational Technical Institute to Lake Washington Technical College, and to increase the appropriation for construction of the administrative addition, classroom space, and aerospace laboratory by $1,051,000.

Votes on Final Passage:

House  95   0

Senate 46   0

Effective:    February 19, 1992