Senate Capital Budget Proposal

What is the capital budget?

“The capital budget bill makes specific appropriations of the proceeds from bond sales, other
dedicated state funds, and federal funds. Appropriations are for the construction and repair of the following:

  • public school buildings;
  • college and university buildings;
  • prison facilities and juvenile rehabilitation facilities;
  • mental health institutions;
  • state office buildings;
  • parks and recreation facilities;
  • low-income housing;
  • state and local museums and cultural facilities;
  • local government infrastructure improvements, including water and sewer systems;
  • toxic waste sites; and
  • habitat conservation and restoration projects.

The capital budget also appropriates money for state land acquisition, water supply
enhancement, storm water improvement, and floodplain management and control
projects, as well as for many other purposes.”

(From the Citizen’s Guide to the Capital Budget – 2021)

 

Listen

Senate leaders introduce capital budget proposal

Senate Republican Capital Budget Team 

Senate Capital Budget Details

Education

  • Senate proposal emphasizes keeping available funds from the income tax on capital gains within the K-12 area
  • Worked around a $150 million surprise shortfall error
  • $144 million enhancement to the School Construction Assistance Program (SCAP), including increasing state cost allocation match from $272/sqft to $400/sqft
  • SCAP remains funded with bonds to avoid the volatility of capital gains as fund source
  • $110 million increase to the Small & Tribal School Modernization Program, finishes list and includes an additional $75 million for a the pool for new construction projects
  • $35 million for the School Modernization Loan Program (SB 5344 – Schoesler)
  • $58 million for school construction tax assistance (SB 5789 – Mullet)
  • $60 million for skills center modernization
  • $46 million for Tri-Tech Skills Center
  • $14.5 million for Wenatchee Valley Skills Center
  • $2 million to implement initial administration of HB 1044 (McEntire) with additional costs anticipated in future years
  • $7.5 million in early learning facility grants

Housing & Behavioral Health

  • $119 million in total affordable housing funds, including $111 million for the Housing Trust Fund
  • $20 million for homeownership
  • $20 million for those with development disabilities
  • Direct projects in Langley, Leavenworth, and Raymond
  • $12.5 million for behavioral health and opioid treatment grants and projects
  • $44 million for tribal behavioral health facilities
  • $30 million in funding related to the “Trueblood” decision
  • $4.5 million for the Skagit County Crisis Stabilization Center
  • Additional funding for Three Rivers Behavioral Health Center (Tri-Cities)

Higher Education

  • Central Washington University
    • $12 million for the geothermal module & $5 million for electrical/computer science building
  • Eastern Washington University
    • $10 million for the sports & recreation center energy improvements
  • Washington State University
    • $20 million for the campus energy program and Knott Dairy digester
  • University of Washington
    • $38.9 million for the energy renewal program

Naturals

  • $3.5 million in toxic clean up funding for homes affected by the Grays Road and Oregon fires
  • $975,000 for Spokane Conservation District forest fire recovery
  • $5.5 million for Odessa Ground Water Replacement Program (OGWRP) EL 22.1
  • Additional $3.5 million for Nisqually full-service park

And More

  • $5 million for Kaiser boiler replacement
  • $5 million for PerryTech electrical expansion building
  • $920,000 for Pend Oreille water treatment
  • $3 million for Pasco’s HAPO Community Center’s HVAC system
  • $515,000 for Skamania/Underwood replacement water tank

Initiative 2109 and Initiative 2117

Income Tax on Capital Gains

The Senate capital budget proposal assumes $304 million in available Common School Construction resources through capital gains revenue forecasted through fiscal year 2024.

Because of the potential for I-2109 repealing the capital gains tax, this budget does not assume any capital gains revenue beyond fiscal year 2024.

 

"Cap-and-Tax"/CCA

The Senate capital budget proposal assumes $663 million in funds generated from the “Climate Commitment Act” are available for appropriation.

However, recognizing the potential for the repeal of the CCA under I-2117, most CCA projects are delayed to start until January 1, 2025 and include lapse clauses should the act be repealed.