FINAL BILL REPORT

2EHB 1115

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.

Background:

Washington operates on a biennial cycle for the operating, transportation, and capital budgets. The Legislature authorizes expenditures for capital projects in the omnibus capital appropriations act (capital budget). The biennial capital budget is passed in the odd-numbered years, and a supplemental budget making adjustments to the biennial budget is often passed during the even-numbered years. The current capital budget covers the period from July 1, 2013, through June 30, 2015.

Historically, approximately half of the capital budget is financed by state general obligation bonds and the balance is funded by dedicated accounts, trust revenue, and federal funding sources.

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, military readiness centers, and higher education facilities. The capital budget also funds a variety of environmental and natural resource projects, parks and recreational facilities, public K-12 school construction, and grant and loan programs that support housing, public infrastructure, community service facilities, and art and historical projects.

Summary:

The act includes the 2015-17 Capital Budget and the 2015 Supplemental Capital Budget. It authorizes new capital projects for 2015-17 totaling $3.9 billion, of which $2.2 billion is financed from state general obligation bonds and $1.7 billion is financed from other funds. Included are authorizations for state agencies to enter into alternative financing contracts totaling $225 million. The act also reappropriates $2.9 billion for uncompleted projects approved in prior biennia.

In addition, the act makes adjustments to the 2013-15 Capital Budget, including appropriation increases of $68.6 million and appropriation decreases of $182.5 million, for a net decrease of $113.9 million. Reappropriations are also decreased by a net of $3.5 million.

Votes on Final Passage:

House	96	2
Senate	39	10	(Senate amended)

Third Special Session

House	96	2
Senate	44	1

Partial Veto Summary: The Governor vetoed two sections of Second Engrossed House Bill 1115. Section 3241 appropriated $500,000 to the Department of Natural Resources to commission research and a report by the Washington State Institute for Public Policy on the transfer of federal lands to Washington state. Section 7044 required the Office of Financial Management to develop a master plan to address the storage and preservation requirements of the state's historical and cultural collections.