House Capital Budget looks to the future

February 20, 2008

OLYMPIA – Adjustments, emergencies, and lost opportunities.  This year’s $110.38 million House Supplemental Capital Budget is about prioritization.  Without the resources to fund every member request, and with state revenue expected to decline by $423 million this biennium, the budget focuses on aligning infrastructure priorities with state goals.

“In every category, we worked to establish a framework for prioritization,” said Rep. Fromhold (D-Vancouver), who chairs the House Capital Budget Committee.  “We ended up with a budget that really focuses on Washington’s future.”

Investments in vocational skills centers, housing, and flood control form the centerpiece of the budget.  This includes up to $10 million to assist communities the governor has declared a disaster develop low-income housing.  There is also $1.5 million in flood assistance to farm communities.

Funding for K-12 school construction, higher education projects, and local infrastructure is also in the budget, but each of these areas is likely to see changes in how they receive capital budget monies in the future.  It’s all part of the push for better prioritization.

“The House passed a bill that would link higher education facilities and state policy into a prioritization system,” Fromhold said.  “Each public, four-year institution would submit prioritized lists of individual projects in certain categories, such as enrollment growth and major campus infrastructure.” 

Although there weren’t enough funds to cover every local request, the budget does address some of the more dire situations facing certain Washington communities.  The city of Tenino received $4.4 million to repair its wastewater treatment facility and collection system.  The system had failed, causing formation of cesspools near the city’s only water supply.

“Tenino’s situation is the Tieton of 2008,” Fromhold said, referring to last session’s emergency funding for the city of Tieton after its water pipes experienced a complete failure, drying up the city’s water supply.

Overall, the supplemental Capital Budget makes adjustments to last year’s budget, funds emergencies like the one in Tenino, and invests in what are called “lost opportunities.”  These are situations where it is better to fund a project now rather than wait, because the project will cost much more in the future.  Budget highlights include:

Investments in Vocational Skills Centers

• $3,070,000 for predesign and design of the Pierce County Skills Center.
• $927,000 for predesign and design of the Grant County Skills Center.
• $475,000 for feasibility studies for satellite/branch campus skills centers in underserved areas of Washington

Housing

·        $50 million increase in the Housing Trust Fund for low-income housing assistance.

·        $20 million to assist low-income housing developers respond quickly to purchase land or real property for development and preservation of low-income housing (HB 3142).

·        $20 million for equity loans to nonprofit housing developers in order to facilitate the use of the Housing Finance Commission’s tax-exempt multi-family bond cap (HB 3180).

Flood Assistance

·        $2.5 million for the Chehalis Basin Flood Control Authority and other local governments to participate in flood hazard mitigation projects (HB 3375).

·        Up to $10 million for low-income homeowners whose homes were in areas the governor declared a disaster after November 2007.

·        $250,000 for a flood warning system inventory and needs assessment.

K-12 School Construction

·        Over $1.7 million allocated to implement recommendations by the Joint Legislative Task Force on School Construction Funding. 

Community Infrastructure

·        $4.4 million for the City of Tenino’s wastewater treatment facility and collection system

·        $2.16 million for Ritzville’s wastewater treatment facility

·        $10 million from Public Works Trust Fund to implement an infrastructure interest rate buy-down pilot program

The House Capital Budget Committee will meet next on Thursday, February 21, at 8:00 a.m. in House Hearing Room A.

Related Links:
Capital Budget Highlights