FINAL BILL REPORT

                  SSB 5364

                         C 15 L 95 E2

                      Synopsis as Enacted

Brief Description:  Authorizing bonds for transportation projects.

Sponsors:  Senate Committee on Transportation (originally sponsored by Senator Owen; by request of Office of Financial Management).

Senate Committee on Transportation

Background:  The 1994 Legislature approved a $25.0 million general obligation bond authorization to support the public-private transportation initiatives program.  The bond proceeds were to be deposited in the transportation fund and debt was to be paid for from the transportation fund.

Concerns have been expressed that debt supported by the transportation fund is subject to both state and constitutional debt limits which are already at or near their maximum allowable levels.  Therefore, it has been recommended that the debt incurred to support the public-private initiatives program be supported by the motor vehicle fund instead of the transportation fund, as the motor vehicle fund is not subject to constitutional and state debt limits.

During the 1993-95 biennial period, there were unexpected cost increases in the public-private initiatives program that totalled about $2.2 million.  The Legislative Transportation Committee approved a loan from the Category C construction program to the public-private initiatives program with the understanding that this loan would be repaid from public-private initiatives bond proceeds.

Summary:  The bond issue supporting the public-private initiatives program is supported by the motor vehicle fund instead of the transportation fund in order to avoid the state and constitutional debt ceiling problems.

The bond authorization is increased by $625,000 to cover the cost of selling the bonds.

A provision is made to reimburse the loan provided by the construction program contained within the Department of Transportation for $2.2 million for costs incurred by the public-private program in 1993-95 that were not anticipated.

Bond proceeds may be used for incidental costs normally associated with transportation construction projects.

Votes on Final Passage:

First Special Session

Senate    41 5

Second Special Session

Senate    41 4

House     64 32

Effective:  June 16, 1995