FINAL BILL REPORT

                 ESHB 1070

                        PARTIAL VETO

                        C 16 L 95 E2

                     Synopsis as Enacted

Brief Description:  Adopting the capital budget.

Sponsors:  House Committee on Capital Budget (originally sponsored by Representatives Sehlin, Ogden, Dellwo, Schoesler, Sheahan and Chopp; by request of Office of Financial Management).

House Committee on Capital Budget

Senate Committee on Ways & Means

Background:  The capital budget is one of three budgets used in Washington State to govern state agency expenditures during the state's two-year fiscal biennium.  The capital budget includes appropriations for acquisition, construction, and repair of state office buildings, public schools, colleges and universities, prisons, parks, local government infrastructure, and other long-term facility and land investments. In recent years, the primary funding source used to fund projects authorized in the capital budget has been the sale of state bonds, with the balance coming from dedicated taxes and fees, revenues from state trust lands, and federal grants. 

Summary:  The state capital budget for the 1995-97 fiscal biennium is adopted.  The budget authorizes $1,639,565,234 in new capital projects, including $811,149,839 in projects funded from state bonds.  Projects authorized in previous capital budgets totalling $26,815,855, including $26,515,855 in projects funded from state bonds, are not authorized to continue into the 1995-97 biennium.  As a result of these reappropriation reductions, the effective 1995-97 capital budget totals $1,612,749,379, including $784,633,984 in state bonds.

In addition to the new projects authorized in the budget, $1,281,901,473 in projects authorized in previous capital budgets but not yet complete are reauthorized for the 1995-97 biennium.  These reappropriated projects include $776,925,480 in projects funded from state bonds.

Conditions and limitations on the use and expenditure of appropriations and reappropriations in the budget are established.

Thirty lease-purchase, lease-development, and long-term lease projects, totalling $246,815,000, are authorized.

Two studies of fiscal issues related to the capital budget are directed:

 (1)The Board of Natural Resources must evaluate the feasibility of establishing a pooled revenue distribution system for state trust lands.

 (2)The State Board of Education must conduct a pilot program to determine the potential advantages and savings of value engineering and constructability reviews on school facility construction.  The state board must also conduct a study to determine potential policy changes regarding state financial assistance to small school districts with less than 25 percent taxable property.

The Department of Natural Resources must submit information regarding the economic assumptions and forecast methodologies used to develop state trust land revenue forecasts to the Economic and Revenue Forecast Council.  The council must include the state trust land revenue forecast in its quarterly forecast report.

The Office of Financial Management and the Department of General Administration must review projects involving the construction or expansion of state office facilities for compliance with state office standards and possible consolidation or collocation.  The Washington State Patrol, the Department of Licensing, and the Department of Ecology must coordinate facility siting and program delivery activities related to driver licensing, vehicle registration, vehicle inspection, and emission testing in order to improve client services.

Votes on Final Passage:

House     63 34

Senate    27 19 (Senate amended)

House         (House did not concur)

First Special Session

House     84 13

Second Special Session

House     79 14

Senate    28 19 (Senate amended)

House         (House did not concur)

Senate    34 14 (Senate amended)

House     78 16 (House concurred)

Effective:  June 16, 1995

Partial Veto Summary:  The Governor vetoed budget proviso language that established conditions and limitations on the expenditure of funds for four capital projects, listed below.  The vetoes do not, however, affect the amount of funds available for the projects, nor the total amount appropriated in the capital budget.

Section 243(3) Department of Social and Health Services - Green Hill School:  The Governor vetoed a proviso requiring that the residential housing units constructed at Green Hill School be designed to accommodate a sustained operating capacity of at least 42 residents.

Section 249(2) Department of Social and Health Services - Camp Bonneville. The Governor vetoed a proviso that permitted the department to use up to $5,000 to acquire the closed federal military base at Camp Bonneville for a future juvenile facility.

Section 276(5) Department of Corrections - Larch Corrections Center: The Governor vetoed a proviso that prohibited the department from housing alien offenders at Larch Corrections Center after January 1, 1996.

Section 327(5) Interagency Committee for Outdoor Recreation - Washington Wildlife and Recreation Program:  The Governor vetoed a proviso that required that acquisitions under the program be deemed public improvements for the purposes of RCW 8.26.180 (governing the determination of value).