AN
ACT Relating to the office of financial management; amending RCW 43.88.030;
adding a new section to chapter 43.88 RCW; and adding a new section to chapter
43.88A RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 43.88 RCW to read as follows:
(1)
The office of financial management must include in its capital budget
instructions, beginning with its instructions for the 2003-05 capital budget, a
request for "yes" or "no" answers for the following
additional informational questions from capital budget applicants for all
proposed major capital construction projects valued over five million dollars
and required to complete a predesign:
(a)
For proposed capital projects identified in this subsection that are located in
or serving city or county planning under RCW 36.70A.040:
(i)
Whether the proposed capital project is identified in the host city or county
comprehensive plan, including the capital facility plan, and implementing rules
adopted under chapter 36.70A RCW;
(ii)
Whether the proposed capital project is located within an adopted urban growth
area:
(A)
If at all located within an adopted urban growth area boundary, whether a
project facilitates, accommodates, or attracts planned population and
employment growth;
(B)
If at all located outside an urban growth area boundary, whether the proposed
capital project may create pressures for additional development;
(b)
For proposed capital projects identified in this subsection that are requesting
state funding:
(i)
Whether there was regional coordination during project development;
(ii)
Whether local and additional funds were leveraged;
(iii)
Whether environmental outcomes and the reduction of adverse environmental
impacts were examined.
(2)
For projects subject to subsection (1) of this section, the office of financial
management shall request the required information be provided during the
predesign process of major capital construction projects to reduce long-term
costs and increase process efficiency.
(3)
The office of financial management, in fulfilling its duties under RCW
43.88.030(3) to create a capital budget document, must take into account
information gathered under subsections (1) and (2) of this section in an effort
to promote state capital facility expenditures that minimize unplanned or
uncoordinated infrastructure and development costs, support economic and
quality of life benefits for existing communities, and support local government
planning efforts.
(4)
The office of community development must provide staff support to the office of
financial management and affected capital budget applicants to help collect
data required by subsections (1) and (2) of this section.
*Sec.
2.
RCW 43.88.030 and 2000 2nd sp.s. c 4 s 12 are each 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 and committees 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 and caseloads as approved by the economic and revenue
forecast council and caseload forecast council or upon the estimated revenues
and caseloads of the office of financial management for those funds, accounts,
sources, and programs for which the forecast councils do 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 transportation revenue forecast
council. 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 and caseloads for use in
the governor's budget document may be adjusted to reflect budgetary revenue
transfers and revenue and caseload estimates dependent upon budgetary
assumptions of enrollments, workloads, and caseloads. All adjustments to the
approved estimated revenues and caseloads 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
agency;
(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 90.71 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;
(f)
Verification that a project is consistent with the provisions set forth in
chapter 36.70A RCW;
(g)
A statement about the proposed site, size, and estimated life of the project,
if applicable;
(h)
Estimated total project cost, including the cost of the raw land, any in
lieu of real property taxes, and the cost of development;
(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;
(j)
Estimated total project cost for each phase of the project as defined by the
office of financial management;
(k)
Estimated ensuing biennium costs;
(l)
Estimated costs beyond the ensuing biennium;
(m)
Estimated construction start and completion dates;
(n)
Source and type of funds proposed;
(o)
Estimated ongoing operating budget costs or savings resulting from the project,
including staffing and maintenance costs;
(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;
(q)
Such other information bearing upon capital projects as the governor deems to
be useful;
(r)
Standard terms, including a standard and uniform definition of normal
maintenance, for all capital projects;
(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. 2 was vetoed. See message at end of chapter.
*NEW
SECTION. Sec. 3.
A new section is added to chapter 43.88A RCW to read as follows:
Except
for transportation projects, trust lands, or purchase or exchange of land by
institutions of higher education under RCW 28B.10.016, the legislature must
have a fiscal note prepared for any purchase or exchange of land authorized in
a capital budget or by separate appropriation. The appropriate legislative
fiscal committees must request a fiscal note containing the following:
(1)
Cost of raw land;
(2)
Cost of ongoing maintenance;
(3)
Cost of ongoing operations and source of funding;
(4)
Employee costs on a full-time equivalent basis including administrative costs;
(5)
Cost of development;
(6)
Any other known costs; and
(7)
Any in lieu of real property taxes, including amounts due junior taxing
districts.
*Sec. 3 was vetoed. See message at end of chapter.
