AN
ACT Relating to the maintenance of state facilities; amending RCW 43.82.150,
43.88.032, and 43.88.110; reenacting and amending RCW 43.88.030; adding a new
section to chapter 43.82 RCW; and creating a new section.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that the capital stock of facilities owned by state agencies
represents a significant financial investment by the citizens of the state of
Washington, and that providing agencies with the tools and incentives needed to
adequately maintain state facilities is critically important to realizing the
full value of this investment. The legislature also finds that ongoing
reporting of facility inventory, condition, and maintenance information by
agencies will improve accountability and assist in the evaluation of budget
requests and facility management by the legislature and governor. The purpose
of this act is to ensure that recent enhancements to facility and maintenance
reporting systems implemented by the office of financial management, and a new
program created by the department of general administration to provide
maintenance information and technical assistance to state and local agencies,
are sustained into the future.
Sec.
2. RCW
43.82.150 and 1993 c 325 s 1 are each amended to read as follows:
(1)
The office of financial management shall develop and maintain an inventory
system to account for all owned or leased facilities utilized by state
government. At a minimum, the inventory system must include the location,
type, condition, and size of each facility. In addition, for owned
facilities, the inventory system must include the date and cost of original
construction and the cost of any major remodelling or renovation. ((The
system must be developed by January 1, 1994, and the initial inventory must be
completed by June 30, 1994.)) The inventory must be updated by June 30 of
each ((subsequent)) year. The office of financial management shall
publish a report summarizing information contained in the inventory system for
each agency by October 1 of each year, beginning in 1997.
(2)
All agencies, departments, boards, commissions, and institutions of the state
of Washington shall provide to the office of financial management a complete
inventory of owned and leased facilities by May 30, 1994. The inventory must
be updated and submitted to the office of financial management by May 30 of
each subsequent year. The inventories required under this subsection must be
submitted in a standard format prescribed by the office of financial
management.
(3)
For the purposes of this section, "facilities" means buildings and
other structures with walls and a roof. "Facilities" does not mean
roads, bridges, parking areas, utility systems, and other similar improvements
to real property.
NEW
SECTION. Sec. 3. A
new section is added to chapter 43.82 RCW to read as follows:
The department of general administration shall provide information,
technical assistance, and consultation on physical plant operation and
maintenance issues to state and local governments through the operation of a
plant operation and support program. The program shall be funded by voluntary
subscription charges and service fees.
Sec.
4. RCW
43.88.030 and 1994 c 247 s 7 and 1994 c 219 s 2 are each reenacted and amended
to read as follows:
(1)
The director of financial management shall provide all agencies with a complete
set of instructions for submitting biennial budget requests to the director at
least three months before agency budget documents are due into the office of
financial management. The director shall provide agencies that are required
under RCW 44.40.070 to develop comprehensive six-year program and financial
plans with a complete set of instructions for submitting these program and
financial plans at the same time that instructions for submitting other budget
requests are provided. The budget document or documents shall consist of the
governor's budget message which shall be explanatory of the budget and shall
contain an outline of the proposed financial policies of the state for the
ensuing fiscal period, as well as an outline of the proposed six-year financial
policies where applicable, and shall describe in connection therewith the
important features of the budget. The message shall set forth the reasons for
salient changes from the previous fiscal period in expenditure and revenue
items and shall explain any major changes in financial policy. Attached to the
budget message shall be such supporting schedules, exhibits and other
explanatory material in respect to both current operations and capital
improvements as the governor shall deem to be useful to the legislature. The
budget document or documents shall set forth a proposal for expenditures in the
ensuing fiscal period, or six-year period where applicable, based upon the
estimated revenues as approved by the economic and revenue forecast council or
upon the estimated revenues of the office of financial management for those
funds, accounts, and sources for which the office of the economic and revenue
forecast council does not prepare an official forecast, including those
revenues anticipated to support the six-year programs and financial plans under
RCW 44.40.070. In estimating revenues to support financial plans under RCW
44.40.070, the office of financial management shall rely on information and
advice from the interagency revenue task force. Revenues shall be estimated
for such fiscal period from the source and at the rates existing by law at the
time of submission of the budget document, including the supplemental budgets
submitted in the even-numbered years of a biennium. However, the estimated
revenues for use in the governor's budget document may be adjusted to reflect
budgetary revenue transfers and revenue estimates dependent upon budgetary
assumptions of enrollments, workloads, and caseloads. All adjustments to the
approved estimated revenues must be set forth in the budget document. The
governor may additionally submit, as an appendix to each supplemental,
biennial, or six-year agency budget or to the budget document or documents, a
proposal for expenditures in the ensuing fiscal period from revenue sources
derived from proposed changes in existing statutes.
Supplemental
and biennial documents shall reflect a six-year expenditure plan consistent
with estimated revenues from existing sources and at existing rates for those
agencies required to submit six-year program and financial plans under RCW
44.40.070. Any additional revenue resulting from proposed changes to existing
statutes shall be separately identified within the document as well as related
expenditures for the six-year period.
The
budget document or documents shall also contain:
(a)
Revenues classified by fund and source for the immediately past fiscal period,
those received or anticipated for the current fiscal period, those anticipated
for the ensuing biennium, and those anticipated for the ensuing six-year period
to support the six-year programs and financial plans required under RCW
44.40.070;
(b)
The undesignated fund balance or deficit, by fund;
(c)
Such additional information dealing with expenditures, revenues, workload,
performance, and personnel as the legislature may direct by law or concurrent
resolution;
(d)
Such additional information dealing with revenues and expenditures as the
governor shall deem pertinent and useful to the legislature;
(e)
Tabulations showing expenditures classified by fund, function, activity and
object;
(f)
A delineation of each agency's activities, including those activities funded
from nonbudgeted, nonappropriated sources, including funds maintained outside
the state treasury;
(g)
Identification of all proposed direct expenditures to implement the Puget Sound
water quality plan under chapter 90.70 RCW, shown by agency and in total; and
(h)
Tabulations showing each postretirement adjustment by retirement system
established after fiscal year 1991, to include, but not be limited to,
estimated total payments made to the end of the previous biennial period,
estimated payments for the present biennium, and estimated payments for the
ensuing biennium.
(2)
The budget document or documents shall include detailed estimates of all
anticipated revenues applicable to proposed operating or capital expenditures
and shall also include all proposed operating or capital expenditures. The
total of beginning undesignated fund balance and estimated revenues less
working capital and other reserves shall equal or exceed the total of proposed
applicable expenditures. The budget document or documents shall further
include:
(a)
Interest, amortization and redemption charges on the state debt;
(b)
Payments of all reliefs, judgments and claims;
(c)
Other statutory expenditures;
(d)
Expenditures incident to the operation for each agency;
(e)
Revenues derived from agency operations;
(f)
Expenditures and revenues shall be given in comparative form showing those
incurred or received for the immediately past fiscal period and those
anticipated for the current biennium and next ensuing biennium, as well as
those required to support the six-year programs and financial plans required
under RCW 44.40.070;
(g)
A showing and explanation of amounts of general fund and other funds
obligations for debt service and any transfers of moneys that otherwise would
have been available for appropriation;
(h)
Common school expenditures on a fiscal-year basis;
(i)
A showing, by agency, of the value and purpose of financing contracts for the
lease/purchase or acquisition of personal or real property for the current and
ensuing fiscal periods; and
(j)
A showing and explanation of anticipated amounts of general fund and other
funds required to amortize the unfunded actuarial accrued liability of the
retirement system specified under chapter 41.45 RCW, and the contributions to
meet such amortization, stated in total dollars and as a level percentage of
total compensation.
(3)
A separate capital budget document or schedule shall be submitted that will
contain the following:
(a)
A statement setting forth a long-range facilities plan for the state that
identifies and includes the highest priority needs within affordable spending
levels;
(b)
A capital program consisting of proposed capital projects for the next biennium
and the two biennia succeeding the next biennium consistent with the long-range
facilities plan. Insomuch as is practical, and recognizing emergent needs, the
capital program shall reflect the priorities, projects, and spending levels
proposed in previously submitted capital budget documents in order to provide a
reliable long-range planning tool for the legislature and state agencies;
(c)
A capital plan consisting of proposed capital spending for at least four
biennia succeeding the next biennium;
(d)
A strategic plan for reducing backlogs of maintenance and repair projects.
The plan shall include a prioritized list of specific facility deficiencies and
capital projects to address the deficiencies for each agency, cost estimates
for each project, a schedule for completing projects over a reasonable period
of time, and identification of normal maintenance activities to reduce future
backlogs;
(e)
A statement of the reason or purpose for a project;
(((e)))
(f) Verification that a project is consistent with the provisions set
forth in chapter 36.70A RCW;
(((f)))
(g) A statement about the proposed site, size, and estimated life of the
project, if applicable;
(((g)))
(h) Estimated total project cost;
(((h)))
(i) For major projects valued over five million dollars, estimated costs
for the following project components: Acquisition, consultant services,
construction, equipment, project management, and other costs included as part
of the project. Project component costs shall be displayed in a standard
format defined by the office of financial management to allow comparisons
between projects;
(((i)))
(j) Estimated total project cost for each phase of the project as
defined by the office of financial management;
(((j)))
(k) Estimated ensuing biennium costs;
(((k)))
(l) Estimated costs beyond the ensuing biennium;
(((l)))
(m) Estimated construction start and completion dates;
(((m)))
(n) Source and type of funds proposed;
(((n)))
(o) Estimated ongoing operating budget costs or savings resulting from
the project, including staffing and maintenance costs;
(((o)))
(p) For any capital appropriation requested for a state agency for the
acquisition of land or the capital improvement of land in which the primary
purpose of the acquisition or improvement is recreation or wildlife habitat
conservation, the capital budget document, or an omnibus list of recreation and
habitat acquisitions provided with the governor's budget document, shall
identify the projected costs of operation and maintenance for at least the two
biennia succeeding the next biennium. Omnibus lists of habitat and recreation
land acquisitions shall include individual project cost estimates for operation
and maintenance as well as a total for all state projects included in the
list. The document shall identify the source of funds from which the operation
and maintenance costs are proposed to be funded;
(((p)))
(q) Such other information bearing upon capital projects as the governor
deems to be useful;
(((q)))
(r) Standard terms, including a standard and uniform definition of normal
maintenance, for all capital projects;
(((r)))
(s) Such other information as the legislature may direct by law or
concurrent resolution.
For
purposes of this subsection (3), the term "capital project" shall be
defined subsequent to the analysis, findings, and recommendations of a joint
committee comprised of representatives from the house capital appropriations
committee, senate ways and means committee, legislative transportation
committee, legislative evaluation and accountability program committee, and
office of financial management.
(4)
No change affecting the comparability of agency or program information relating
to expenditures, revenues, workload, performance and personnel shall be made in
the format of any budget document or report presented to the legislature under
this section or RCW 43.88.160(1) relative to the format of the budget document
or report which was presented to the previous regular session of the legislature
during an odd-numbered year without prior legislative concurrence. Prior
legislative concurrence shall consist of (a) a favorable majority vote on the
proposal by the standing committees on ways and means of both houses if the
legislature is in session or (b) a favorable majority vote on the proposal by
members of the legislative evaluation and accountability program committee if
the legislature is not in session.
Sec.
5. RCW
43.88.032 and 1994 c 219 s 4 are each amended to read as follows:
(1)
((Annual ongoing or routine)) Normal maintenance costs shall be
programmed in the operating budget rather than in the capital budget.
(2) All debt-financed pass-through money to local governments shall
be programmed and separately identified in the budget document.
Sec.
6. RCW
43.88.110 and 1994 c 219 s 5 are each amended to read as follows:
This
section sets forth the expenditure programs and the allotment and reserve
procedures to be followed by the executive branch for public funds.
(1)
Allotments of an appropriation for any fiscal period shall conform to the
terms, limits, or conditions of the appropriation.
(2)
The director of financial management shall provide all agencies with a complete
set of operating and capital instructions for preparing a statement of proposed
expenditures at least thirty days before the beginning of a fiscal period. The
set of instructions need not include specific appropriation amounts for the
agency.
(3)
Within forty-five days after the beginning of the fiscal period or within
forty-five days after the governor signs the omnibus biennial appropriations
act, whichever is later, all agencies shall submit to the governor a statement
of proposed expenditures at such times and in such form as may be required by
the governor.
(4)
The office of financial management shall develop a method for monitoring
capital appropriations and expenditures that will capture at least the
following elements:
(a)
Appropriations made for capital projects including transportation projects;
(b)
Estimates of total project costs including past, current, ensuing, and future
biennial costs;
(c)
Comparisons of actual costs to estimated costs;
(d)
Comparisons of estimated construction start and completion dates with actual
dates;
(e)
Documentation of fund shifts between projects.
This
data may be incorporated into the existing accounting system or into a separate
project management system, as deemed appropriate by the office of financial
management.
(5)
The office of financial management shall publish agency annual maintenance
summary reports beginning in October 1997. State agencies shall submit a
separate report for each major campus or site, as defined by the office of
financial management. Reports shall be prepared in a format prescribed by the
office of financial management and shall include, but not be limited to:
Information describing the number, size, and condition of state-owned
facilities; facility maintenance, repair, and operating expenses paid from the
state operating and capital budgets, including maintenance staffing levels; the
condition of major infrastructure systems; and maintenance management
initiatives undertaken by the agency over the prior year. Agencies shall
submit their annual maintenance summary reports to the office of financial
management by September 1 each year.
(6)
The office of financial management, prior to approving allotments for major
capital construction projects valued over five million dollars, shall institute
procedures for reviewing such projects at the predesign stage that will reduce
long-term costs and increase facility efficiency. The procedures shall
include, but not be limited to, the following elements:
(a)
Evaluation of facility program requirements and consistency with long-range
plans;
(b)
Utilization of a system of cost, quality, and performance standards to compare
major capital construction projects; and
(c)
A requirement to incorporate value-engineering analysis and constructability
review into the project schedule.
(((6)))
(7) No expenditure may be incurred or obligation entered into for such
major capital construction projects including, without exception, land
acquisition, site development, predesign, design, construction, and equipment
acquisition and installation, until the allotment of the funds to be expended
has been approved by the office of financial management. This limitation does
not prohibit the continuation of expenditures and obligations into the
succeeding biennium for projects for which allotments have been approved in the
immediate prior biennium.
(((7)))
(8) If at any time during the fiscal period the governor projects a cash
deficit in a particular fund or account as defined by RCW 43.88.050, the
governor shall make across-the-board reductions in allotments for that
particular fund or account so as to prevent a cash deficit, unless the
legislature has directed the liquidation of the cash deficit over one or more
fiscal periods. Except for the legislative and judicial branches and other
agencies headed by elective officials, the governor shall review the statement
of proposed operating expenditures for reasonableness and conformance with
legislative intent. Once the governor approves the statements of proposed
operating expenditures, further revisions shall be made only at the beginning
of the second fiscal year and must be initiated by the governor. However,
changes in appropriation level authorized by the legislature, changes required
by across-the-board reductions mandated by the governor, changes caused by
executive increases to spending authority, and changes caused by executive
decreases to spending authority for failure to comply with the provisions of
chapter 36.70A RCW may require additional revisions. Revisions shall not be
made retroactively. Revisions caused by executive increases to spending
authority shall not be made after June 30, 1987. However, the governor may
assign to a reserve status any portion of an agency appropriation withheld as
part of across-the-board reductions made by the governor and any portion of an
agency appropriation conditioned on a contingent event by the appropriations
act. The governor may remove these amounts from reserve status if the across-the-board
reductions are subsequently modified or if the contingent event occurs. The
director of financial management shall enter approved statements of proposed
expenditures into the state budgeting, accounting, and reporting system within
forty-five days after receipt of the proposed statements from the agencies. If
an agency or the director of financial management is unable to meet these
requirements, the director of financial management shall provide a timely
explanation in writing to the legislative fiscal committees.
(((8)))
(9) It is expressly provided that all agencies shall be required to
maintain accounting records and to report thereon in the manner prescribed in
this chapter and under the regulations issued pursuant to this chapter. Within
ninety days of the end of the fiscal year, all agencies shall submit to the
director of financial management their final adjustments to close their books
for the fiscal year. Prior to submitting fiscal data, written or oral, to
committees of the legislature, it is the responsibility of the agency
submitting the data to reconcile it with the budget and accounting data
reported by the agency to the director of financial management.
(((9)))
(10) The director of financial management shall monitor agency operating
expenditures against the approved statement of proposed expenditures and shall
provide the legislature with quarterly explanations of major variances.
(((10)))
(11) The director of financial management may exempt certain public
funds from the allotment controls established under this chapter if it is not
practical or necessary to allot the funds. Allotment control exemptions expire
at the end of the fiscal biennium for which they are granted. The director of
financial management shall report any exemptions granted under this subsection
to the legislative fiscal committees.
