FINAL BILL REPORT

SHB 1001

C 132 L 01

Synopsis as Enacted

Brief Description:  Authorizing projects recommended by the public works board.

Sponsors:  By House Committee on Capital Budget (originally sponsored by Representatives Alexander, Murray, Armstrong, Hatfield, Dickerson, Linville, Kenney, Simpson, McIntire, Edmonds, Keiser, Schual‑Berke, Ogden and Fromhold; by request of Public Works Board).

House Committee on Capital Budget

Senate Committee on Ways & Means

Background:

The Public Works Assistance Account, commonly known as the Public Works Trust Fund, was created by the Legislature in 1985 to provide a source of loan funds to assist local governments and special purpose districts with infrastructure projects.  The Public Works Board, within the Department of Community, Trade and Economic Development (CTED), is authorized to make low‑interest or interest‑free loans from the account to finance the repair, replacement, or improvement of the following public works systems:  bridges, roads, water and sewage systems, and solid waste and recycling facilities.  All local governments except port districts and school districts are eligible to receive loans.

The account receives dedicated revenue from:  utility and sales taxes on water, sewer service, and garbage collection; a portion of the real estate excise tax; and loan repayments. Approximately $239 million is expected to be generated by these sources during the 2001-03 biennium.

The Public Works Assistance Account appropriation is made in the capital budget, but the project list is submitted annually in separate legislation.  The CTED received an appropriation of approximately $203 million from the account in the 1999‑01 capital budget: $191 million for construction loans; $10 million for pre-construction loans; and $2 million for emergency loans.  The funding is available for public works project loans in the 2000 and 2001 loan cycles.

Each year, the Public Works Board is required to submit a list of public works projects to the Legislature for approval.  The Legislature may remove projects from the list, but it may not add any projects or change the order of project priorities.  Legislative approval is not required for funds specifically appropriated for pre-construction activities or emergency loans.

Summary:

As recommended by the Public Works Board, 46 public works project loans totaling $73,502,877 are authorized for the 2001 loan cycle.  In addition, $1 million from the Public Works Assistance Account is recommended for emergency infrastructure loans.

The 46 authorized projects fall into the following categories:

(1) Twenty-eight water projects totaling $32,943,282;

(2) Thirteen sewer projects totaling $27,314,095;

(3) One road projects totaling $3,000,000;

(4) Two bridge projects totaling $5,575,000; and

(5) Two storm projects totaling $4,670,500.

In addition, $93.6 million is appropriated to the Department of Community, Trade and Economic Development for 27 additional project loans recommended by the Public Works Board.  The 27 projects fall into the following categories:

(1) Ten water projects totaling $46,628,085;

(2) Eleven sewer projects totaling $28,846,991;

(3) Three road projects totaling $13,152,155;

(4) One bridge project totaling $897,812; and

(5) Two storm projects totaling $4,068,025.

Votes on Final Passage:

House970

Senate440

Effective:  May 2, 2001