House Majority Leader Frank Chopp (D-43, Wallingford) has stood by his word. The House released its budget today and check it (synopsis linked below the jump), there’s $90 million in new money for the Housing Trust Fund—which provides funding for low-income families and people with special needs

At the beginning of this year’s session, the Democrats made a big deal about housing issues. They attacked on several fronts, proposing legislation that would tighten up regulations on lenders (Sens. Tom and Weinstein); shoring up rules against discriminatory rental practices (Reps. Pettigrew and Darnielle); and infusing state low-income housing programs with cash.

While the Governor proposed adding $50 million into the Housing Trust Fund—taking it from $130 million to $180 million—advocates from the Low-Income Housing Alliance were agitating for a $100 million upgrade, as was their ally, Chopp.

Well, Speaker Chopp came through today, budgeting the fund at $220 million.

The Senate’s budget is due next week. Judging on interviews with Sen. Majority Leader Lisa Brown (D-3, Spokane), I don’t expect them to match Chopp’s housing fund line item.

However, by coming out strong, Chopp has now tilted the bargaining in the right direction.

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

February 20, 2008
House Supplemental Capital Budget
Aligning priorities with goals

Building on past progress by establishing
the framework for future good decisions.


House Supplemental Capital Budget Highlights



Looking to the Future
The 2008 Supplemental Capital Budget totals $110.38 million and is focused on adjustments, emergencies, and lost opportunities. The current state revenue forecast means there is the need for prioritization of projects without sacrificing smart investments in Washington’s future.

Project Highlights
Skills Centers
The 2008 Supplemental Capital Budget invests over $5.1 million in our vocational skills centers by expanding capacity at current sites and exploring the feasibility of additional ones. Separate legislation would authorize $100 million in state general obligation bonds for skills centers that would be deposited into a new Skills Centers Building Account. The new funding source would cover:
$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.
$550,000 for predesign and design of the Northeast King County Skills Center
$50,000 for the purchase option of land for the North Central Skills Center
$475,000 for feasibility studies for satellite/branch campus skills centers in underserved areas of Washington
$75,000 for a feasibility study for the Seattle Skills Center.

Housing
Developing and preserving affordable housing continues to be a priority. The devastation to homes from last year’s flooding across much of the state underscored the need for more affordable housing. The Housing Trust Fund is increased by $50 million with up to $10 million provided for the creation and development of low-income housing within areas declared disasters by the governor after November 2007.
$50 million for general low-income housing assistance.
Up to $10 million for low-income homeowners whose homes were in areas the governor declared a disaster after November 2007.
$2 million for migrant and seasonal worker housing
$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
Funds for catastrophic flood relief in the wake of the December 2007 flood, as well as flood mitigation and prevention.
HB 3375 provides $2.5 million for the Chehalis Basin Flood Control Authority and other local governments to participate in flood hazard mitigation projects.
$50 million in new state general obligation bonds for the Chehalis River Basin.
$1.5 million in flood assistance for farm communities.
$250,000 for a flood protection study by the US Army Corps of Engineers
$250,000 for a flood warning system inventory and needs assessment.

K-12 School Construction Funding Task Force
Over $1.7 million is allocated to implement recommendations by the Joint Legislative Task Force on School Construction Funding. The House also passed HB 3291, the Community Schools Bill, which would preserve school facilities slated for closure for community use. This aligns with one of the Task Force’s recommendations, which is that school districts to identify community partnerships.
$320,000 for development of a K-12 facility condition and inventory system pilot program.
$150,000 to make the current School Construction Assistance Grant Program more transparent in terms of formula components and assumptions.
$1.1 million for development of a regional school construction technical assistance program.
$150,000 to evaluate the accuracy and reliability of the enrollment forecasting methods used to determine eligibility for the School Construction Assistance Grant Program.

Higher Education Prioritization
HB 3329 passed the House unanimously and would link higher education facilities and state policy into a prioritization system. Each four-year institution would submit prioritized lists of the individual projects proposed for the ensuing six-year period in certain categories. Each project would be scored in a single category, according to its primary purpose. The categories would be:
Enrollment growth
Replacement and renovation
Major campus infrastructure
Research projects that promote economic growth and innovation
Other project categories determined by OFM and legislative fiscal committees

Community Infrastructure
There was $40 million in member requests seeking assistance for communities facing high infrastructure costs, as well as dire health and quality of life needs for water and wastewater treatment systems. There were not enough resources to fund all requests, but the ones that were funded point to the great need in many of our state’s communities. The following projects received funding:
· $4.4 million for the City of Tenino’s wastewater treatment facility and collection system
· $2.16 million for Ritzville’s wastewater treatment facility
· $1 million for improvements to the city of Gig Harbor’s wastewater system
· $500,000 for a wastewater system for the Hoodsport to Skokomish Indian Reservation area of Mason County

In order to begin the process of thinking about meeting infrastructure needs in a different way, the supplemental budget also includes:
· $10 million from Public Works Trust Fund to implement an infrastructure interest rate buy-down pilot program.
· Funding for the Office of Financial Management and other agencies to work together to identify improvements in the infrastructure grant system.

The House also passed HB 3125, which creates the Building Communities Fund Program in the Department of Community, Trade and Economic Development. It would make grants available for the acquisition, construction, or rehabilitation of nonresidential community services facilities.