SENATE BILL REPORT

SB 5134

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, April 1, 2019

Title: An act relating to the capital budget.

Brief Description: Concerning the capital budget.

Sponsors: Senators Frockt, Honeyford and Sheldon; by request of Office of Financial Management.

Brief History:

Committee Activity: Ways & Means: 1/17/19, 3/27/19, 4/01/19 [DPS, w/oRec].

Brief Summary of First Substitute Bill

  • Authorizes $5.263 billion in new capital projects for the 2019-21 fiscal biennium; of this total, $3.08 billion is financed with state general obligation bonds.

  • Includes $204 million in authorizations for agencies and institutions of higher education to enter into alternative financing contracts.

  • Adjusts the 2017-19 capital budget by a net decrease of $34.5 million.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: That Substitute Senate Bill No. 5134 be substituted therefor, and the substitute bill do pass.

Signed by Senators Rolfes, Chair; Frockt, Vice Chair, Operating, Capital Lead; Mullet, Capital Budget Cabinet; Brown, Assistant Ranking Member, Operating; Honeyford, Assistant Ranking Member, Capital; Bailey, Billig, Carlyle, Darneille, Hasegawa, Hunt, Keiser, Liias, Palumbo, Pedersen, Van De Wege, Wagoner and Warnick.

Minority Report: That it be referred without recommendation.

Signed by Senators Braun, Ranking Member; Becker and Schoesler.

Staff: Richard Ramsey (786-7412)

Background: The programs and agencies of state government are funded on a two-year basis, with each fiscal biennium beginning on July 1st of odd-numbered years. The capital budget generally includes appropriations for the acquisition, construction, and repair of capital assets such as land, buildings, and other infrastructure improvements. Funding for the capital budget is primarily from state general obligation bonds, with other funding derived from various dedicated taxes, fees, and state trust land revenues.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (First Substitute): The omnibus 2019-21 capital budget authorizes new capital projects for state agencies and institutions of higher education for the 2019-21 fiscal biennium. The bill makes adjustments to the 2017-19 capital budget.

For the 2017-19 biennium, a total of $5.263 billion is appropriated; $3.08 billion is appropriated from the proceeds of state general obligation bonds. The 2017-19 capital budget is adjusted; there is a net decrease of $34.5 million. The budget authorizes state agencies and institutions of higher education to enter into alternative financing contracts for a total of $204 million.

Budget summary materials are available online at http://fiscal.wa.gov/ under the Budget Bills and Documents header.

Appropriation: Various.

Fiscal Note: Not requested.

Creates Committee/Commission/Task Force that includes Legislative members: No.

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

Staff Summary of Public Testimony on Original Bill: Please refer to the January 17, 2019 recording of the public hearing on the Senate AV Capture All website at: http://leg.wa.gov/Senate/Committees/Pages/avcaaudio.aspx/.

Persons Testifying: K-12 Public Schools. OTHER: Brian Sims, Washington State School Directors' Association.

Higher Education. PRO: Becca Kenna-Schenk, Western Washington University; Jeremy Mohn, The Evergreen State College; Chris Mulick, Washington State University; Steve DuPont, Central Washington University; David Buri, Eastern Washington University; Nancy Szofran, Spokane Falls Community College; Bonnie Brunt, Spokane Falls Community College; Eric Murray, Cascadia College; Patrick Sisneros, Everett Community College; Steve Leahy, Seattle Colleges.

OTHER: Morgan Hickel, University of Washington.

Mental Health. PRO: Mike Hatchett, Washington Council for Behavioral Health; Ian Goodhew, University of Washington Medicine Health System; Matt Zuvich, Washington Federation of State Employees.

OTHER: Seth Dawson, Compass Health, Washington Association for Children and Families, Child Advocacy Centers of Washington; Michael Moran, Confederated Tribes of the Colville Reservation.

Natural Resources. PRO: Christine Mahler, Washington Wildlife and Recreation Coalition; Steve Seward, Board Chair, Washington Wildlife and Recreation Organization; Doug Dogerty, Regional Director, Rocky Mountain Elk Foundation; Mary Dodsworth, Director, Lakewood Parks; Matt Ojala, Forterra; Bruce Wishart, Sound Action; John Floberg, Washington State Parks Foundation.

OTHER: Doug Levy, Washington Recreation and Park Association; Shelly Helder, Gordon Thomas Honeywell, cities of Kenmore, Kent, Bellevue, Pasco, Othello; Scott Sigmon, Coastal Conservation Association; Carl Burke, Northwest Sportfishing Industry, Northwest Marine Trade Association; Jeanne Cushma, Squaxin Island Tribe.

All Other. PRO: Allison Krutsinger, Early Learning Action Alliance; Erica Hallock, Fight Crime: Invest in Kids; Michael Moran, Confederated Tribes of the Colville Reservation.

OTHER: Mike Bomar, Port of Vancouver USA; Jeff DeLuca, Washington State Community Action Partnership; Michele Thomas, Washington Low Income Housing Alliance; Jennifer Kilmer, Washington State Historical Society, Director; Candice Bock, Association of Washington Cities.

Persons Signed In To Testify But Not Testifying: K-12 Public Schools. No one.

Higher Education. No one.

Mental Health. No one.

Natural Resources. No one.

All Other. No one.

Staff Summary of Public Testimony on Proposed Substitute: Please refer to the March 27, 2019 recording of the public hearing on the Senate AV Capture All website at: http://leg.wa.gov/Senate/Committees/Pages/avcaaudio.aspx/.

Persons Testifying: K-12 Public Schools. PRO: Tyler Muench, Office of the Superintendent of Public Instruction; Brian Sims, Washington State School Directors' Association; Mitch Denning, Alliance of Educational Associations; Charlie Brown, Schools Coalition.

Higher Education. PRO: Jeremy Mohn, The Evergreen State College; David Buri, Eastern Washington University; Becca Kenna-Schenk, Western Washington University; Chris Mulick, Washington State University; Morgan Hickel, University of Washington; Steve DuPont, Central Washington University; Henry Pollet, Associated Students of Western Washington University.

OTHER: Steve Leahy, Seattle Colleges; Dr. David Beyer, Everett Community College; Dr. Jim Minkler, Grays Harbor College.

Mental Health. PRO: Len McComb, Washington State Hospital Association; Seth Dawson, Washington Association for Children and Families.

OTHER: Tom Sebastian, Compass Health, CEO; Matt Zuvich, Washington Federation of State Employees.

Natural Resources. PRO: Mike Schwisow, Columbia Basin Development League; Doug Levy, Washington Recreation and Park Association, Recreational Boating Association of Washington; Al Aldrich Strategies 360 - Cities of Marysville, Arlington; Luke Esser, City of Spokane; Christine Mahler, Washington Wildlife and Recreation Coalition; Hannah Clark, American Farmland Trust; Nick Norton, Washington Association of Land Trusts; Jonathon Turlove, Olympia Parks, Arts and Recreation; Shelly Helder, city of Kenmore; Cory Wright, Kittitas County Commissioner; Urban Eberhardt, Kittitas Reclamation District; Dawn Vyvyan, Yakama Nation; Wendy McDermott, American Rivers; Laura Osiadacz, Kittitas County Commissioner; Joyce Willms, Back Country Horsemen of Washington.

OTHER: Marie Sullivan, Quinault Indian Nation.

All Other. PRO: Joe Cunningham, Imagine Children's Museum; Jay Jennings, Office of the Secretary of State; Jim Bevan, Outdoors for All; Michele Thomas, Washington Low Income Housing Alliance; Peter Shapiro, citizen; Allison Krutsinger, Early Learning Action Alliance; Melissa Johnson; Washington State Association of Head Start and Early Childhood Education and Assistance Program; Kyle Crok, South Sound Y; Jim Morrell, South Sound Y; Bill Tsoukalas, Boys and Girls Clubs of Snohomish County; Amber Carter, Port of Vancouver USA; Donna Patrick, Developmental Disabilities Council; James Thompson, Washington Ports; Warren Hendrickson, Aircraft Owners and Pilots Association, Northwest Mountain Regional Manager.

CON: Habtamu Abdi, citizen; Zerfu Takele, citizen; Sofia Tekola, citizen.

OTHER: Nick Federici, Pioneer Human Services, City of Spokane; Candice Bock, Association of Washington Cities; Jeff DeLuca, Washington State Community Action Partnership; Amy Wheeless, NW Energy Coalition; Steve Gelb, Emerald Cities Collaborative; Randy Ross, Community Economic Revitalization Board; Waylon Robert, citizen.

Persons Signed In To Testify But Not Testifying: K-12 Public Schools. No one.

Higher Education. No one.

Mental Health. No one.

Natural Resources. No one.

All Other. No one.