Brief Description: Amending provisions of the 2005-2007 capital budget.

Sponsors: Representatives Dunshee, Jarrett, Ormsby, Newhouse, Ericks, Cox, Linville and Springer.

Hearing Date: 1/16/06

Staff: Susan Howson (786-7142).

Background:

The programs and agencies of state government are funded on a two-year basis, with each biennium beginning on July 1 of each odd-numbered year. The Capital Budget includes appropriations for the acquisition, construction and repair of capital assets such as state office buildings, prisons, juvenile rehabilitation centers, residential habilitation centers, mental health facilities, public health facilities, military readiness centers, and higher education facilities. The Capital Budget funds a variety of environmental and natural resource projects, parks and recreational facilities, grants for public K-12 school construction, and has a number of grant and loan programs that support housing, public infrastructure, community service facilities, and art and historical projects.

The sources of funding for the Capital Budget primarily are state general obligation bonds, trust revenues, and dedicated fees and taxes.

The 2005-07 Capital Budget adopted in 2005 authorized $3.25 billion in new capital projects, with $1.56 billion financed with new state general obligation bonds.

Summary of Bill:

An Infrastructure Loan Program is established in the Department of Community, Trade, and Economic Development (DCTED). A total of $9 million in funding is appropriated to the DCTED to implement the program.

A Public Works Assistance Account appropriation of $5 million for military communities infrastructure projects in the 2005-07 Capital Budget is eliminated and reallocated to the Infrastructure Loan Program. An additional $4 million of state general obligation bonds is also appropriated for the program.

Appropriation: $5,000,000 from the Public Works Assistance Account and $4,000,000 from the State Building Construction Account.

Fiscal Note: Not requested.

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