HOUSE BILL REPORT

                  HB 2381

             As Reported By House Committee On:

                       Capital Budget

Title:  An act relating to the capital budget.

Brief Description:  Authorizing a supplemental capital budget.

Sponsors:  Representatives Murray, Alexander and Lantz; by request of Governor Locke.

Brief History:

  Committee Activity:

Capital Budget:  2/28/00, 3/1/00 [DPS].

           Brief Summary of Substitute Bill

$Amends the 1999-01 capital budget by appropriating $86 million in new capital projects from various funding sources.  State bond appropriations are reduced by $318,500.

HOUSE COMMITTEE ON CAPITAL BUDGET

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives Alexander, Republican Co-Chair; Murray, Democratic Co-Chair; Esser, Republican Vice Chair; Anderson; Barlean; Bush; Constantine; Dunshee; Koster; Mastin; O'Brien; Schoesler and Woods.

Minority Report:  Do not pass.  Signed by 3 members:  Representatives Edmonds, Democratic Vice Chair; Hankins and Lantz.

Staff:  Bill Robinson (786-7140).

Background:

The programs and agencies of state government are funded on a two-year basis, with each fiscal biennium beginning on June 30 of even-numbered years.  The capital budget generally includes appropriations for the acquisition, construction, and repair of capital assets such as land, buildings, and other infrastructure improvements.  Funding for the capital budget is primarily from state general obligation bonds, with other funding derived from various dedicated taxes, fees, and state trust land timber revenues.

The 1999 Legislature appropriated $2.3 billion for capital projects, of which $987 million was from state bonds.

Summary of Substitute Bill:

The 2000 supplemental capital budget authorizes $86 million in new capital projects from various funding sources.  State bond appropriations are reduced by $318,500 and moneys for the Salmon Recovery Program are reallocated to several agencies for specific purposes.  For additional information, see "2000 Proposed Supplemental Capital Budget" published by the House Capital Budget Committee.

Substitute Bill Compared to Original Bill:  For changes, see attached "2000 Proposed Supplemental Capital Budget."

Appropriation:  The sum of $86 million in new capital projects is appropriated from various funding sources.

Fiscal Note:  Not requested.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  The elimination of the raid on the Public Works Trust Fund will provide additional money for local government infrastructure.  The additional money for Community Services Facilities will strengthen services for the state's youth and community services.  The approval of the list of local park projects in the Washington Wildlife and Recreation Program will allow more than $4 million of recreation development across the state.

Testimony Against:  The St. Edwards State Park road project is not able to proceed into the permitting process without funding in this budget.  The budget fails to provide the construction of new beds at the Special Commitment Center for sex offenders.  By not lowering the timber ratio requirement for the trust land transfer program the Tiger Mountain project will only be partially completed and there is no provision to transfer Loomis forest revenues to the school construction account.  The budget fails to approve the Certificates of Participation (COPs) for six community colleges projects and three University of Washington projects.  These projects and the funding source to pay any debt payment are approved by student organizations and the Board of Trustees.

Testified:  Jim King, Coalition for Parks and Recreation; Tom Henderson, State Board for Community and Technical Colleges; Laurie Lippold, Children's Home Society; John Reynolds, Department of Social and Health Services; Rick Slunaker, Association of General Contractors; Kaleen Cottingham, Department of Natural Resources; Len Barson, The Nature Conservancy; Dan Sexton, Washington State Association of Plumbers and Pipe Fitters; Dick Thompson, University of Washington; and Kristy Sullivan, Friends of Youth.