SENATE BILL REPORT

                   SB 5598

                    As of February 17, 1997

Title:  An act relating to the method of allocating state funds to cities and towns.

Brief Description:  Including the population of a military base in the total population of an adjoining city or town for purposes of determining the amount of the allocation and entitlement of state moneys to go to the city or town.

Sponsors:  Senators Winsley, Rasmussen and Haugen.

Brief History:

Committee Activity:  Ways & Means:  2/13/97.

SENATE COMMITTEE ON WAYS & MEANS

Staff:  David Schumacher (786-7474)

Background:  The Office of Financial Management (OFM) annually forecasts the state population and prepares population estimates for local governments for the allocation of revenues.  It also prepares annual certifications of all annexations and new incorporations in Washington for the federal Bureau of the Census to whom it acts as the state=s official liaison.

Cities, towns and counties receive state levied, locally shared revenues based either all or in part on their populations.  These include distributions of the Motor Vehicle Excise Tax (MVET) for public safety, criminal justice and sales tax equalization; liquor taxes and liquor profits; and gas taxes.

Summary of Bill:  A city that abuts a military base with two or more gates that lead directly into that city must have the population of that military base added to its population for purposes of revenue distribution.

If more than one city abuts a military base, then the population of the military base is apportioned to each city based upon the population of the city.

Appropriation:  None.

Fiscal Note:  Requested on February 2, 1997.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The city of Lakewood is unable to provide required services given the amount of resources ir currently has.  This bill allows Lakewood to address the problems of crime and poverty in those areas near the military bases.

Testimony Against:  Sympathetic to Lakewood's attempt to solve these problems.  However, the solution shouldn't come at the expense of other cities or Pierce County.

Testified:  PRO:  Doug Richardson, Lakewood City Council; Claudia Thomas, Lakewood City Council; Dan Heid, Lakewood City Council; CON: George Walk, Pierce County; Jim Justin, Association of Washington Cities (concerns).