Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Capital Budget Committee

HB 2324

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.

Brief Summary of Bill

Authorizes new appropriations of $310 million in total funds, of which $78.5 million is financed with state general obligation bonds.
Authorizes $121 million in alternatively financed projects.
Reduces total project costs from reappropriated projects by $9.0 million, $8.8 million is assumed to be state general obligation bond authority.

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. During even-numbered fiscal years, the Legislature historically enacts a supplemental budget making adjustments to the two-year budget. The current 2019-21 biennium covers the period from July 1, 2019, through June 30, 2021. 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 schools construction, and grant and loan programs that support housing, public infrastructure, community service facilities, and art and historical projects. Historically, over one-half of the Capital Budget is financed by state-issued general obligation bonds, and the remaining portion is funded by dedicated accounts, trust revenue, and federal funding sources.

Summary of Bill:

A total of $310 million is appropriated for capital projects, of which $78.5 million is financed through general obligation bond proceeds. An additional $121 million is authorized in alternative financing contracts for specific projects. Total project costs from reappropriations are reduced by $9.0 million, $8.8 million is assumed to be in state general obligation bond authority.