SENATE BILL REPORT

                   SB 5061

              As Reported By Senate Committee On:

               Transportation, February 2, 1999

Title:  An act relating to transportation funding and appropriations.

Brief Description:  Funding transportation.

Sponsors:  Senators Haugen, Benton, Goings and Gardner; by request of Office of Financial Management.

Brief History:

Committee Activity:  Transportation:  1/13/99, 2/2/99 [DPS].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  That Substitute Senate Bill No. 5061 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Gardner, Vice Chair; Goings, Vice Chair; Benton, Costa, Eide, Horn, Jacobsen, Johnson, Oke, Patterson, Prentice, Sellar, Sheahan, T. Sheldon, Shin and Swecker.

Staff:  Brad Lovaas (786-7307)

Background:  The transportation budget provides appropriations to the major state transportation agencies:  Department of Transportation (DOT), Washington State Patrol (WSP), Transportation Improvement Board, and County Road Administration Board (CRAB).  It also provides appropriations to many smaller transportation agencies and appropriates transportation funds to general government agencies.

The transportation budget total includes federal, state, local dollars and bond proceeds.  The budget total does not include bond retirement and interest or federal pass-through dollars going to local agencies.

The 1997 Legislature adopted the 1997-99 biennial transportation budget that totaled $2.9 billion.  The 1998 Legislature adopted a supplemental budget that appropriated $181 million additional dollars, bringing the 1997-99 transportation budget total to approximately $3.1 billion.

Summary of Substitute Bill:

I.  Technical Adjustments:

$$2 million is provided to the Transportation Improvement Board (TIB), in the Small City Account, to fund previously obligated grants to small cities.

$$1.6 million is provided to restore a double reduction in DOL's budget.

$($10.5) million is recognized in WSDOT efficiencies.

$($2.3) million is deducted to complete the General Fund transfer of $12.7 million for the WSP.

$($600,000) is deducted to provide a dividend payment from the Accident Account for the Washington State Department of Transportation (WSDOT), the Washington State Patrol (WSP), and the Department of Licensing (DOL).

II.  Emergent Issues:

$$3 million is provided for WSDOT's year 2000 business contingency plans.

$$2.3 million is provided for 100 WSP pursuit vehicles.

$$1.2 million is provided for WSDOT's Attorney General tort defense costs.

$$1.2 million is provided for Washington State Ferries (WSF) terminal agent wage settlement.

$$400,000 is provided as the state match for the Federal COPS MORE grant program within the WSP.

$$120,000 is provided for WSDOT's Wahkiakum County Ferry subsidy.

III.  Windows of Opportunity:

$$1.7 million is provided to the State Infrastructure Bank.

$$5 million is provided for continued design of the WSDOT passenger‑only program.

$$1.3 million is provided to WSDOT for highway construction projects around the state.

IV.  Budget Underruns:

The following amounts have been deducted for WSDOT's 97‑99 budget:

$($35) million reserve ‑ Referendum 49 ‑ Highway Construction Improvement Program.

$($17) million ‑ Marine Capital Program.

$($10) million reserve ‑ TEA 21 ‑ Highway Construction Improvement Program.

$($7) million ‑ Highway Construction Improvement Program under‑run on 1998 preliminary engineering and right of way funds.

$($8) million ‑ Rail Corridor Capital Improvement Program.

Total 1999 Supplemental Budget:  ($68) million

Total 1997‑99 Transportation Budget with STC PSSB 5061: $3.0 Billion

Substitute Bill Compared to Original Bill:  The substitute bill is substantially similar to the original bill except for: (1) 11 projects are authorized as opposed to the Governor=s proposed six projects; (2) the transfer of expenditure authority between the general fund and the transportation budget is completed; (3) $10.5 million of efficiencies within the Department of Transportation is realized; and (4) technical adjustments are made.

Appropriation:  ($68 million).

Fiscal Note:  Not requested.

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

Testimony For:  This will allow Referendum 49 monies to be expended on 11 projects this construction season.  Continued funding is provided for development of the passenger-only ferry program.  Funding is provided to small cities who completed more transportation projects than originally expected.

Testimony Against:  None.

Testified:  PRO: Mike Roberts, OFM; Helga Morgenstern, Department of Transportation; Randy Hain, DOT; Terry McCarthy, Washington State Ferries; Fred Stephens, Department of Licensing; Judith Giniger, Department of Licensing; Jerry Fay, Transportation Improvement Board; Captain Eric Robertson, Washington State Patrol; Bill Ford, Department of Transportation.