SENATE BILL REPORT

                            HB 2266

                AS PASSED SENATE, MARCH 1, 1994

Brief Description:  Authorizing public works board project loans.

SPONSORS: Representatives Moak, Ogden, Sehlin, Patterson, Wood and Springer; by request of Department of Community Development

HOUSE COMMITTEE ON CAPITAL BUDGET

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass. 

     Signed by Senators Rinehart, Chairman; Quigley, Vice Chairman; Anderson, Bauer, Bluechel, Cantu, Gaspard, Hochstatter, Ludwig, McDonald, Moyer, Owen, Pelz, Roach, L. Smith, Snyder, Spanel, Sutherland, Talmadge, West, Williams and Wojahn.

Staff:  Martin Chaw (786‑7711)

Hearing Dates: February 21, 1994; February 23, 1994

BACKGROUND:

The public works trust fund was established in 1985 to assist local governments finance public works projects.  Assistance is provided in the form of low or no interest loans.  Loan repayments are recycled into the fund and used to fund future projects.  Examples of projects financed include roads, bridges, and sewer and water systems.  Growth related projects are not eligible to receive loans through this program.

A 13-member public works board, within the Department of Community Development, is responsible for reviewing and prioritizing projects for funding.  The board is required to annually submit a list of proposed projects for legislative approval.  The Legislature may delete projects on the list but cannot add or change the order of any of the projects.

The Department of Community Development received an appropriation of $93,876,640 from the public works trust fund for the 1993-95 biennium.

SUMMARY:

A list of 48 proposed projects has been developed by the Public Works Board for legislative approval.  The list of projects total $44.8 million and a $1.0 million loan pool for emergency public works projects.  These projects tall into the following five categories:  25 water projects--$20.4 million; 10 sewer projects--$10.6 million; 8 road projects--$8 million; 4 storm sewer projects--$5.5 million; and 1 bridge project--$300,000.

Appropriation:  $45.8 million from the public works trust fund

Revenue:  none

Fiscal Note:  none requested

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

TESTIMONY FOR:

The approval of the projects recommended for funding will support over 1,500 family-wage construction jobs.  This program has been in existence since 1985 and represents a program for local infrastructure improvements and economic development.

TESTIMONY AGAINST:  None

TESTIFIED:  Bob Anderson, Public Works Board member; Pete Butkus, Public Works Trust Fund Program Manager; Duke Schaub, Association of General Contractors; Bob Dilger, Washington Building Trade Council; Jim Justin, Association of Washington Cities