HOUSE BILL REPORT

HB 2168

As Reported by House Committee On:

Capital Budget

Title: An act relating to funding capital projects.

Brief Description: Concerning the capital budget.

Sponsors: Representatives Dunshee, Jinkins, Tharinger, Ladenburg and Kenney; by request of Governor Gregoire.

Brief History:

Committee Activity:

Capital Budget: 1/10/12, 2/23/12, 2/24/12 [DPS].

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 6 members: Representatives Dunshee, Chair; Ormsby, Vice Chair; Jinkins, Lytton, Tharinger and Wylie.

Minority Report: Do not pass. Signed by 4 members: Representatives Warnick, Ranking Minority Member; Zeiger, Assistant Ranking Minority Member; Pearson and Smith.

Staff: Susan Howson (786-7142).

Background:

Washington operates on a biennial budget cycle. The Legislature authorizes expenditures for capital needs in the state omnibus capital appropriations act (capital budget) for a two-year period, and authorizes bond sales through passage of a bond bill associated with the capital budget to fund a portion of these expenditures. Approximately half of the capital budget is financed by these state-issued general obligation bonds, and the balance is funded by dedicated accounts, trust revenue, and federal funding sources. The primary two-year budget is passed in the odd-numbered years, and a supplemental budget making adjustments to the two-year budget often is passed during the even-numbered years. The current capital budget covers the period from July 1, 2011, through June 30, 2013.

The capital budget includes appropriations for the acquisition, construction, and repair of capital assets such as state office buildings, prisons, juvenile rehabilitation centers, residential habilitation centers, mental health facilities, military readiness centers, and higher education facilities. The capital budget also funds a variety of environmental and natural resource projects, parks and recreational facilities, public K-12 school construction, and grant and loan programs that support housing, public infrastructure, community service facilities, and art and historical projects.

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Summary of Substitute Bill:

New supplemental capital budget appropriations of $250 million are made for the 2011-13 biennium, including all appropriation increases and decreases. State agencies are authorized to enter into alternative financing contracts for projects totaling $226 million.

Substitute Bill Compared to Original Bill:

The substitute bill changes the appropriation and funding sources for various capital projects and programs.

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Appropriation: The sum of $250 million. Please see the bill.

Fiscal Note: Not requested.

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

Staff Summary of Public Testimony:

Please refer to the January 10, 2011, and February 23, 2011, recordings of the Public Hearing.

Persons Testifying: (In support of PSHB 2168) Representative Dunshee, prime sponsor; George Rohrbacher, Washington Wildlife and Recreation Coalition; Harry Hoffman, Housing Development Consortium Seattle-King County; Marty Kooistra, Habitat for Humanity Housing Development Consortium; Paul Haas, Historic Seattle; Kitty Wu, 206 ZULU; Steve Gelb, SustainableWorks; June Robinson, Housing Consortium Everett and Snohomish County; Mary Pontarolo and Lucy Clifthorne, SafePlace; Jeff Johnson and Rebecca Johnson, Washington State Labor Council; David Myers, Washington State Building and Construction Trades Council; Lonnie Johns-Brown, National Organization of Women; Sharon Ness, United Food and Commercial Workers International Union–Washington State Council; Fritz Feiten, Ameresco; Matt Wegworth, McKinstry, Co.; Jill Severn and Joe French, Camp Quixote; Jim King, Citizens for Parks and Recreation; Marcie Taylor, Community Employment Alliance; Connie Brown, Tacoma-Pierce County Affordable Housing; Cynda Mack, Metropolitan Development Council; Paul Purcell, Beacon Development Affordable Housing Advisory; Ashley Haugen, El Centro de la Raza; Mark Jenefsky, Bazan Architects; Gordon Beck, Office of Superintendent of Public Instruction; Majken Ryherd, Silicon Energy; Bill Clarke, Washington Public Utility Districts Association; Rick Slunaker, Associated General Contractors; Bob Guenther, International Brotherhood of Electrical Workers Local 77; Bill Robinson, The Nature Conservancy; Doug Levy, Washington Recreation and Park Association; Ashley Probart, Assocation of Washington Cities; Megan Hyla, King County Housing Authority and Kent Youth and Family Services; and Rob Van Tassell, Catholic Community Services.

(In support of original bill) Representative Dunshee, prime sponsor; Barbara Martin, State Board for Community and Technical Colleges; Gordon Beck, Office of Superintendant of Public Instruction; Scott Sigman, Coastal Conservation Association; Carl Burke, Northwest Sportfishing Industry Association, and Fish NW, PSA; Jim Rothlin, Port of Chehalis; and Nicole Grant, Certified Electrical Workers of Washington.

(In support with concerns on PSHB 2168) Wayne Doty, State Board of Community and Technical Colleges.

(In support with concerns on original bill) Wayne Doty, State Board for Community and Technical Colleges; and Stan Bowman, American Institute of Architects Washington Council.

(With concerns on PSHB 2168) Chris Mulick, Washington State University; Chris Moore, Washington Trust for Historic Preservation; Ralph Munro; and Margaret Shepherd, University of Washington.

(With concerns on original bill) Bill Robinson, The Nature Conservancy; and Rick Slunaker, Associated General Contractors.

(Opposed to PSHB 2168) None.

(Opposed to original bill) Jeff Johnson, Washington State Labor Council.

(Information only) Marty Brown and Sandi Triggs, Office of Financial Management.

(Other) Scott Merriman, Association of Counties.

Persons Signed In To Testify But Not Testifying: None.