SENATE BILL REPORT

SHB 1031

BYHouse Committee on Capital Facilities & Financing (originally sponsored by Representatives Fuhrman, Sayan, Silver, Holland, Heavey, Winsley and Betrozoff; by request of Legislative Budget Committee)

Making changes to state budget requests.

House Committe on Capital Facilities & Financing

Senate Committee on Ways & Means

Senate Hearing Date(s):March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Matson, Moore, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Steve Jones (786-7440)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 31, 1989

BACKGROUND:

The 1986 Legislature, in the supplemental budget, directed the Legislative Budget Committee to study the state's debt issuance practices.  The main objective of the study was to seek means of reducing the cost of capital projects by either (1) reducing the bond issuance cost, or (2) using "pay as you go" financing rather than debt financing.

The Legislative Budget Committee completed its study in September, 1987, and forwarded its recommendations to the full Legislature.  Three of the recommendations from the committee involved transferring certain types of expenditures between the capital budget and the operating budget.  The committee recommended that routine maintenance expenses be clearly identified in the Governor's operating budget document.

SUMMARY:

Five new provisions are added to the State Budget and Accounting Act:

      (1) Annual routine or ongoing maintenance costs are required to be programmed in the state operating budget rather than the capital budget;

      (2) All debt financed pass through money to local governments is required to be programmed in the state capital budget;

      (3) The Office of Financial Management is directed to conduct a technical and program analysis of all major buildings included in the Governor's budget recommendation.  The analysis shall include space requirements, construction costs, and other building features;

      (4) The Governor's budget document is required to identify the amount of general fund obligations for debt service and other transfers that would otherwise be available for legislative appropriation;

      (5) The Governor's budget document is required to identify the purpose and amount of lease purchase contracts.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENT:

The Capitol Campus Design Advisory Committee is re-established to review plans for capital improvements on the Capitol Campus.  The committee consists of four legislators, the Secretary of State, and four professionals from the field or architecture, landscape architecture, and urban planning.

Senate Committee - Testified: Representative Steve Fuhrman, original sponsor; Frank Hensley, LBC; Victor Moore, OFM