SENATE BILL REPORT

SB 5804

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Ways & Means, February 28, 2013

Majority Report: That Substitute Senate Bill No. 5804 be substituted therefor, and the substitute bill do pass.

Signed by Senators Hill, Chair; Baumgartner, Vice Chair; Honeyford, Capital Budget Chair; Hargrove, Ranking Member; Nelson, Assistant Ranking Member; Bailey, Becker, Braun, Conway, Dammeier, Fraser, Hasegawa, Hatfield, Hewitt, Keiser, Padden, Parlette, Ranker, Rivers, Schoesler and Tom.

Background: State agencies administer funds allocated to the state by the federal government for a variety of programs, both as one-time grants and as on-going matching funds for federal programs administered by the state. State agencies may be authorized to expend federal funds either by an appropriation from the Legislature or by the unanticipated receipts process, where an agency receives approval from the Office of Financial Management to expend federal funds that were received by the agency while the Legislature is not is session.

Summary of Bill (Recommended Substitute): The Department of Social and Health Services, the Department of Health, the Health Care Authority, the Department of Commerce, the Department of Ecology, the Department of Fish and Wildlife, the Department of Early Learning, and the Superintendent of Public Instruction must prepare a biennial report on the amount of federal funds received and expended by the agency, and the percentage that the federal funds represents of the overall agency budget. The designated agencies must also develop contingency plans that reflect both a 5 percent and a 25 percent reduction in federal funding. The report must be submitted as part of the agencies' biennial budget request documents.

EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (Recommended Substitute): The report is made biennially, and included in the agencies' biennial budget request documents.

Staff Summary of Public Testimony on Original Bill: PRO: This is a be prepared bill. Sequestration and other budget reductions at the federal level can have significant impacts on state programs and the delivery of services in Washington. This information will help the legislative and executive branches be better prepared for fluctuations in federal spending levels.