SENATE BILL REPORT

SSB 6020

BYSenate Committee on Transportation (originally sponsored by Senator Peterson)

Authorizing temporary highway construction funding.

Senate Committee on Transportation

Senate Hearing Date(s):March 25, 1987

Majority Report:  That Substitute Senate Bill No. 6020 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, Conner, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Sellar, Smitherman, von Reichbauer.

Senate Staff:Gene Schlatter (786-7316)

                  April 1, 1987

AS PASSED SENATE, APRIL 1, 1987

BACKGROUND:

Congress has adopted the Surface Transportation Act which provides federal funds for such programs as interstate completion.  The President is considering a veto of the transportation bill.

If federal funds are delayed, the impact on Washington State could be serious.  Through June 1987, at least 90 contracts would have to be held.  The impact is as follows:

      70 Category A projects totalling $65 million;

      20 Interstate contracts totalling $95 million.

SUMMARY:

Appropriations are provided to allow projects to proceed on schedule with authorization to use bond funds to cover the cash flow requirements, if needed.

For Category A projects:

      --Allow all 70 projects to proceed on schedule.

      --Authorize bond expenditures in the current biennium of up to $3 million for these projects.

      --Authorize use of up to $52 million additional Category C bond funds to cover the cash flow in 1987-89, if needed.

      --Authorize substitution of up to $55 million Category A federal funds on Category C projects in 1987-89 and beyond, if needed.

For Category B projects (Interstate):

      --Proceed with critical work needed to keep the Interstate 90, I-5 to I-405 project on schedule and to continue work in progress.

      --Authorize up to $13 million of ACI bonds in lieu of federal funds in 1987-89.

If a federal Surface Transportation Act is enacted before mid-June, actual cash flow in the current biennium will be very small.

Fiscal Note:      none requested

Senate Committee - Testified: Duane Berentson, Secretary, Department of Transportation; Jim Clemen, DOT