FINAL BILL REPORT

ESHB 1216

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Sponsors: House Committee on Capital Budget (originally sponsored by Representatives Dunshee, Warnick and Ormsby; by request of Governor Gregoire).

Background:

The programs and agencies of state government are funded on a biennial basis, beginning on July 1 of each odd-numbered year. The State Capital Budget includes appropriations for the acquisition, construction, and repair of capital assets such as state office buildings, prisons, juvenile rehabilitation centers, mental health facilities, public health facilities, and higher education facilities. The Capital Budget funds a variety of environmental and natural resource projects, parks and recreational facilities, and 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 primary source of funding for the State Capital Budget is state general obligation bonds, with trust revenues and dedicated fees and taxes also contributing.

Summary:

The 2009-11 State Capital Budget authorizes $3 billion in new capital projects, of which $1.8 billion are financed with new state general obligation bonds. Reappropriations in the amount of $2.4 billion are authorized for projects yet to be completed that were approved in prior biennia. State agencies are also authorized to enter into a variety of alternative financing contracts.

The 2009 Supplemental State Capital Budget authorizes $209 million from new state general obligation bonds.

Votes on Final Passage:

House	62	33
House	63	33
Senate	31	15	(Senate amended)
House	61	35	(House concurred)

Effective:	May 15, 2009
	July 1, 2009 (Sections 6020, 6021, and 6024 - 6027)

Partial Veto Summary: The Governor vetoed five sections of the capital budget bill. Three of the sections restrict the required purchase of artwork for capital facilities with 0.5 percent of the project funds to artists residing in Washington. A duplicative section relating to the Puget Sound Partnership’s review of natural resource projects was vetoed, and a Department of Corrections section requiring the Office of Financial Management to undergo a budget evaluation study of the expansion of the reception center at the Washington Corrections Center was vetoed because funds were not appropriated to continue the project.