‘Record-breaking’ $8.3 billion construction budget proposed by House leaders

A record-breaking $8.3 billion capital budget proposal was released Monday afternoon by House budget writers.

That amount includes $4.62 billion in new state bonds as well as $3.16 billion in federal, local, and dedicated state funding. Lawmakers are also proposing leaving aside $160 million in reserves for the 2024 supplemental budget.

This budget is the first that contains revenue from the 2021 Climate Commitment Act, and lawmakers are proposing $525 million in spending from that account.

Rep. Steve Tharinger, D-Port Townsend, chair of the House Capital Budget Committee, unveiled the details of the capital funding and said that families all over the state are hurt by the housing crisis.

“That’s why we worked with lawmakers from both parties to craft this budget with a focus on housing, with $704 million invested in more affordable housing, emergency shelter funding, and home upgrades,” Tharinger said in a statement.

Republican lawmaker Rep. Mike Steele, ranking member of the House Capital Budget Committee, called the proposal “one of the most bipartisan efforts in Olympia.”

“I worked closely with the chair of the Capital Budget Committee on a solid spending plan that bolsters communities, encourages economic growth, and makes wise investments for the future of our state,” Steele said in a statement.

House lawmakers also released their proposed operating budget proposal Monday, with $69.5 billion in funding, including boosts in special education, affordable housing, and biodiversity protection.

Gov. Jay Inslee issued a statement Monday afternoon and said that he was encouraged by the House’s larger investments to avert homelessness in the state.

“It is most heartening that the House put in the budget the funds necessary to implement our housing bond proposal that would build thousands of necessary housing units,” Inslee said. “The stage is now set for discussions between the House and the Senate to develop a budget that will go big so people can go home.”

Senate budget writers released their budget proposals last week, with a proposed $69.2 billion for the operating budget, and a $7.9 billion proposal for the capital budget.

Those budgets did not include Inslee’s $4 billion bond proposal for housing, disappointing the governor, who proposed the idea in his budget released back in December.

The House and Senate will negotiate and come to an agreement for a final budget that must be passed by the end of the legislative session on April 23.

Here are some of the major capital investments being proposed by House leaders:

Housing

One of the largest investments floated by House lawmakers would go towards housing, with a total of $704 million affordable housing, home upgrades and the like. The Housing Trust Fund, which provides loans and grants for affordable housing projects, would see an influx of $400 million for the 2023-25 biennium. An additional $75 million is included for other infrastructure and utility costs associated with the construction of affordable housing.

House lawmakers also included $50 million for transit-oriented development, $40 million for affordable housing land acquisition, and $14.5 million for youth shelter and transitional housing.

The remaining $124.2 million would be allocated for energy retrofits of homes, low-income weatherization and rural home rehabilitation projects.

Behavioral health

Another major investment is in behavioral health, with budget writers proposing $893 million in that area. Most of the funding would go to a new 350-bed forensic hospital at Western State Hospital in Lakewood, with $613 million in proposed funding for the construction.

Maple Lane, the state’s first residential treatment facility, would see an additional $21 million for 136 new beds under the proposed budget, and a new residential treatment facility slated for Clark County would get $24 million for construction.

Behavioral health providers would receive $211 million in competitive grants under the proposal. Lawmakers are also setting aside $13 million in funding for family-centered drug treatment.

Education

Lawmakers are also investing heavily in K-12 construction, which includes a total of $806 million. About $588 million of that total is set aside for the School Construction Assistance Program.

Budget writers also have proposed $400 million for community and technical colleges, as well as $344 million for public universities.

Other projects

The John L. O’Brien Building and Pritchard Building on the Capitol Campus are getting renovations, and lawmakers have set aside $150 million for those projects.

Additionally, $821 million is proposed for “natural resource investments including drinking water, forest management, toxic cleanup, recreation and conservation, and state parks.”