Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Capital Budget Committee

HB 1116

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:

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.

Washington operates on a biennial budget cycle. The Legislature authorizes expenditures for capital needs in the capital budget for a two-year period, and authorizes bond sales through passage of a bond bill associated with the capital budget to fund a portion of these expenditures. Historically, approximately half of the capital budget has been financed by these state-issued general obligation bonds, and the balance by dedicated accounts, trust revenue, and federal funding sources.

The primary two-year budget is passed in the odd-numbered years, and a supplemental budget making adjustments to the two-year budget is often passed during the even-numbered years. The current Capital Budget covers the period from July 1, 2013 through June 30, 2015 and totals $3.61 billion. $2.2 billion of the total is financed through state-issued general obligation bonds and the balance is funded through dedicated accounts, trust revenue, and federal funding sources.

Summary of Bill:

The 2015 Supplemental Capital Budget makes adjustments to the 2013-15 Capital Budget. Including appropriation increases of $16.7 million and appropriation decreases of $125.3 million, the 2013-15 Capital Budget total is decreased by a net of $108.6 million. As a result, the adjusted 2013-15 Capital Budget total is $3.5 billion.