SENATE BILL REPORT

                            SB 5681

                     AS OF MARCH 17, 1993

Brief Description:  Authorizing public works board project loans.

SPONSORS: Senators Skratek, McDonald and Deccio; by request of Department of Community Development

SENATE COMMITTEE ON WAYS & MEANS

Staff:  Terry Wilson (786‑7715)

Hearing Dates: February 25, 1993

BACKGROUND:

The Public Works Assistance Account is an account in the state treasury that is used to assist local governments and special purpose districts with infrastructure development.  Revenues from the state refuse collection tax, a portion of the revenues from the state public utility tax on water distribution and sewerage collection businesses, and a portion of the revenues from the state real estate excise tax are deposited in the account.

The Public Works Board is authorized to make low-interest or interest-free loans from the Public Works Assistance Account to assist local governments in financing the planning, acquisition, construction, repair, replacement, or improvement of roads, bridges, water systems, and storm and sanitary sewer systems.  Projects for port districts and school districts are not eligible.

Each year, the Public Works Board submits a list of projects to the Legislature for approval.  The Legislature may delete a project from the list but may not add a project or change the priority of projects.

SUMMARY:

Loans recommended by the Public Works Board are authorized for 61 public works projects totaling $51,059,758, a $1,000,000 loan pool for emergency public works projects, and $300,000 for capital facilities plan loans.  The appropriation for these projects was included in the 1991-93 capital budget.

The public works projects authorized for funding consist of: (1) 29 domestic water projects for a total of $23,927,340; (2) 13 sanitary sewer projects for a total of $15,133,603; (3) five storm sewer projects for a total of $3,829,490; (4) seven capital facilities planning projects for a total of $210,000; (5) six road projects for a total of $6,359,324; and (6) one bridge project for a total of $1,600,000.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

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

TESTIMONY FOR:

This program is the premier infrastructure program of the state.  It has the lowest cost of administration of any program.  There are numerous projects representing every area of the state.

TESTIMONY AGAINST:  None

TESTIFIED:  Pete Butkis, Department of Community Development