HOUSE BILL REPORT

ESHB 1216

As Amended by the Senate

Title: An act relating to the capital budget.

Brief Description: Concerning the capital budget.

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

Brief History:

Committee Activity:

Capital Budget: 4/2/09, 4/3/09 [DPS].

Floor Activity

Passed House: 4/24/09, 62-33.

Passed House: 4/24/09, 63-33.

Senate Amended.

Passed Senate: 4/26/09, 31-15.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 10 members: Representatives Dunshee, Chair; Ormsby, Vice Chair; Warnick, Ranking Minority Member; Blake, Chase, Grant-Herriot, Jacks, Maxwell, Orwall and White.

Minority Report: Do not pass. Signed by 5 members: Representatives Pearson, Assistant Ranking Minority Member; Anderson, Hope, McCune and Smith.

Staff: Nona Snell (786-7153)

Background:

The programs and agencies of state government are funded on a biennial basis, 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, 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 Capital Budget is state general obligation bonds, with trust revenues and dedicated fees and taxes also contributing.

Summary of Engrossed Substitute Bill:

The 2009-11 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 approved in prior biennia. State agencies are also authorized to enter into a variety of alternative financing contracts.

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

EFFECT OF SENATE AMENDMENT(S):

Senate Ways and Means amendment makes the following changes:

(1) several technical corrections;

(2) reduces the Temporary Public Works Grant Program's two competitive grant programs by $469,000 each;

(3) removes the Carnation Farmers Market ($162,000) project;

(4) adds the Connell Infrastructure ($1,100,000) project;

(5) adjusts amounts to reflect changes;

(6) adds the Freight Mobility Multimodal project for the west Vancouver freight access project ($700,000); and

(7) restricts the 0.5 percent of construction projects used for the arts program to Washington artists.

Appropriation: The sum of $3 billion is appropriated for new projects, and $2.4 billion is reappropriated for existing projects.

Fiscal Note: Not requested.

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

Staff Summary of Public Testimony:

Persons Testifying: (In support) Jim Kowalkowski, Davenport School District; Mitch Denning, Alliance of Education Association; Bobbie Moore, Kingston Community Center Foundation; Bill Thomas Lake Washington Technical College; Mayor Quade, City of Poulsbo; Bruce Harlow, Poulsbo Science Center; Mark Brown, City of Vancouver and City of Longview; Bruce Mortimer, Yakima Valley Technical Skill Center; Rick Linehan, White Pass School District; Mark Okazaki, Neighborhood House; Debbie Wilke, Washington Association of County Offficials; Seth Dawson, Washington State Association for Community Action; Robert Van Slyke, Puget Sound School Coalition and Bethel Schools; Gordon Beck, Office of the Superintendent of Public Instruction; Bill Robinson, The Nature Conservancy, Mo McBroom, Washington Environmental Council; Naki Stevens, People for Puget Sound; Julie Suchanek, The Evergreen State College; Donald King, Seattle Schools; Tim Gugerty, City of Seattle; David Foster, Building for the Arts; Tony Lee, Solid Ground; Michael Reichert, Catholic Community Services; and Hugh Ewart, Seattle Children’s Hospital.

(In support with amendment) Terri Jeffreys, Washington Association of Realtors.

(With Concerns) Nick Federici and Lynn Davidson, Washington Low Income Housing Alliance; Maureen Howard, Habitat for Humanity of Washington State; John Aultman, Office of the Superintendent of Public Instruction; Stan Bowman, American Institute of Architects Washington Council; Joe Daniels, City of SeaTac; David Buri, Eastern Washington University; Charles Earl and Thomas Henderson, State Board for Community and Technical Colleges; Tim Siegel, Bethel School District; Bryce Yadon, Economic Development Association; Sherry Burkey, Western Washington University; Eric Johnson, Washington Public Ports Association; Doug Quinn, Camas School District; Randy Hodgins, University of Washington; Larry Ganders, Washington State University; Pamela Darling, North East King County Skills Center and North East Vocational Area Cooperative; Ashley Probart, Association of Washington Cities; Scott Merrimad, Association of Counties, Scott Hazlegrove, Washington Association of Sewer and Water Districts; Donna Patrick, Developmental Disabilities Council; Mark Bridges and Rodney Sisson, Puyallup Tribal Fishermen; Dawn Vyvyan, Puyallup Tribe; and Barbara Mertens, Washington Association of School Administrators.

(Opposed) None.

Persons Signed In To Testify But Not Testifying: None.