HOUSE BILL REPORT

HB 2395

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.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 19 members: Representatives Tharinger, Chair; Doglio, Vice Chair; Peterson, Vice Chair; DeBolt, Ranking Minority Member; Smith, Assistant Ranking Minority Member; Dye, Eslick, Kraft, MacEwen, Macri, Morris, Reeves, Riccelli, Ryu, Sells, Steele, Stonier, Volz and Walsh.

Background:

Washington operates on a biennial budget cycle. During odd-numbered fiscal years, the Legislature historically authorizes expenditures for capital needs in the 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. 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, recreational facilities, and public schools.

Historically, over one-half of the Capital Budget is financed by these state-issued general obligation bonds, and the remaining portion is funded by dedicated accounts, trust revenue, and federal funding sources. During even-numbered fiscal years, the Legislature historically enacts a supplemental budget making adjustments to the two-year budget. The Legislature did not authorize a Capital Budget or bond sales during the 2017 Legislative Session. In January 2018, during the 2018 Legislative Session, the Legislature authorized $2.93 billion in general obligation bonds and appropriated $4.2 billion in total funds for a 2017-19 biennial Capital Budget, of which $2.72 billion is financed through general obligation bond proceeds. The current 2017-19 biennium covers the period from July 1, 2017, through June 30, 2019.

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Summary of Substitute Bill:

The substitute bill authorizes a 2018 Supplemental Capital Budget including new appropriations totaling $376.8 million, of which $208.1 million is financed with state general obligation bonds. It authorizes state agencies to enter into a variety of alternative financing contracts totaling $64.6 million, and amends provisions in the 2017-19 enacted biennial budget including due dates of reports.

Substitute Bill Compared to Original Bill:

The substitute bill is a 2018 Supplemental Capital Budget, rather than a 2017-19 biennial budget. As a result the appropriations total $376.8 million, rather than $4.4 billion. The amount funded with general obligation bonds is $208.1 million, rather than $2.85 billion.

Persons Testifying: (In support) Luke Esser, City of Spokane; Molly Carney, Evergreen Treatment Services; Al Aldrich, City of Arlington; Amber Carter, Port of Vancouver; Mary Alice Grobins, Central Skagit Library; Eron Berg, City of Sedro-Woolley; Marty Hartman, Mary's Place; Brian Sims, Washington State School Directors Association; Jane Wall, Association of Washington Cities; Arlen Harris, State Board for Community and Technical colleges; Jim Minkler, Grays Harbor College; Peter Lortz, South Seattle College; Jeff Wagnits, Highland College; Doug Levy, Washington Recreation and Park Association; Shawn Collins, Opportunity Council; Alan Walker, Chelan Douglas Community Action Council; and Jeff DeLuca, Washington State Community Action Partnership.

(Other) Allen Miller, North Capitol Campus Heritage Park Development Association; Marie Sullivan, Quinault Indian Nation; and Mara Machulsky, Hoh Indian Tribe.