FINAL BILL REPORT

SHB 1031

PARTIAL VETO

                                  C 311 L 89

BYHouse Committee on Capital Facilities & Financing (originally sponsored by Representatives Fuhrman, Sayan, Silver, Holland, Heavey, Winsley and Betrozoff; by request of Legislative Budget Committee)

Making changes to state budget requests.

House Committe on Capital Facilities & Financing

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

The 1986 Legislature, in the supplemental budget, directed the Legislative Budget Committee to study the state's debt issuance practices.  The main objective of the study was to seek means of reducing the cost of capital projects by either (1) reducing the bond issuance cost, or (2) using "pay as you go" financing rather than debt financing.

The Legislative Budget Committee completed its study in September, 1987, and forwarded its recommendations to the full Legislature.  Three of the recommendations from the committee involved transferring certain types of expenditures between the capital budget and the operating budget.  The committee recommended that routine maintenance expenses be clearly identified in the Governor's operating budget document.

SUMMARY:

Five provisions are added to the State Budget and Accounting Act.  These provisions:  (1)  Require annual routine or ongoing maintenance costs to be programmed in the state operating budget rather than the capital budget; (2)  Require all debt financed pass through money to local governments to be programmed in the state capital budget; (3)  Direct the Office of Financial Management to conduct a technical and program analysis of all major buildings included in the Governor's budget recommendation.  The analysis shall include space requirements, construction costs, and other building features;  (4)  Require the Governor's budget document to identify the amount of general fund obligations for debt service and other transfers that would otherwise be available for legislative appropriation; and (5)  Require the Governor's budget document to identify the purpose and amount of lease purchase contracts.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    45     0 (Senate amended)

      Senate    43     0 (Senate receded)

EFFECTIVE:July 23, 1989

Partial Veto Summary:  The Governor vetoed the third provision in the bill that required the Office of Financial Management to conduct technical and program analysis of all major construction projects in the Governor's budget recommendation.  While the Governor concurred with the need for greater technical review and analysis of capital projects by a group independent of the requesting agency, the bill did not, nor did the state operating budget, include funding for this function.  The Governor vetoed the technical review requirement because the Legislature did not provide the requisite funding for this additional function.  (See VETO MESSAGE)