WA senators propose $7.9 billion for capital budget. Here’s what’s in it and what’s not

Washington state Senate budget writers released their capital construction budget proposal Monday that includes $7.9 billion total in investments throughout the state.

Under the proposal, major investments would be made in affordable housing, behavioral health, education and natural resources projects.

The Senate budget proposal was scheduled for a public hearing at 4 p.m. Monday in the Senate Ways and Means Committee.

On Wednesday the budget proposal will be considered in an executive session in the Senate Ways and Means Committee where it is expected to be approved. The full Senate will vote on the proposal later this week.

In a press release Monday, Sen. Mark Mullet, D-Issaquah, said the budget “steps up to the scale of the challenges facing our state, and does so in a fiscally responsible way that we can sustain into the future.”

“When you look at the big issues — housing affordability, educating our future workforce, addressing our climate crisis — this budget makes major investments in addressing all of them,” said Mullet, who is vice chair of the Senate Ways and Means Committee. “None of our challenges are going to be solved overnight, but this budget takes the steps necessary to meet our pressing needs while creating jobs and spurring economic growth.”

Republican budget leaders also agreed.

“The Senate’s capital budget addresses needs all throughout Washington, and it provides funding for important projects in a wide variety of areas, from education and public safety to housing and water and more,” said Sen. Mark Schoesler, R-Ritzville, the Republican lead for the Senate capital budget.

“I’m pleased our capital budget funds many projects that will help our colleges and universities, and I’m especially glad to see money for school seismic safety grants, which is important since our state is in earthquake country. I’m also pleased there is funding for water supply projects, which will benefit agriculture and other water users. The Senate’s capital budget takes a statewide approach, as it should.”

Senate leaders noted in a press release Monday that the budget “stays within the state’s constitutional debt limit.” Lawmakers said this is important to “protect the state’s historically high AAA credit rating and avoid higher debt service payments that could financially hinder future state budgets.”

While Gov. Jay Inslee proposed an additional $4 billion above the state’s debt limit to fund affordable housing projects over the next several years, that proposal was ultimately not included in the Senate’s budget.

The governor released a statement Monday afternoon following the Senate’s proposed budget.

“The Senate’s capital budget proposal would take us backwards on housing,” Inslee said. “It’s less than what we approved last biennium. In the middle of a housing crisis, less is unacceptable. We need to go big, so people can go home. In the past two years we were able to make historic investments to scale up and speed up construction of housing and shelters. The problem is growing, not shrinking, so our response must match the moment.”

Inslee added that he appreciates the work of legislators to address “urgent priorities” in the capital budget, and said that he looks forward to seeing the House budget proposal.

House budget leaders are expected to release their capital budget proposal sometime next week. After that, Senate and House leaders must come to an agreement on a capital budget before the last day of the legislative session, which is April 23.

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

Housing

Both Senate and House lawmakers said at the beginning of the legislative session this year that funding affordable housing was one of their biggest priorities, and that sentiment is reflected in the proposed capital budget released Monday.

Under the proposal, $400 million would be invested in the state Housing Trust Fund. Senate leaders said the investment sets a record “for the largest ever investment” in the account in order to construct new housing.

In total, Senate leaders are proposing $625 million for affordable housing projects. Additionally, $67 million is proposed for land acquisition for the Housing Finance Commission, and $50 million is proposed to increase supply of “transit-oriented housing.”

Behavioral health

Lawmakers are proposing $860 million in investments for behavioral health needs, including $650 million towards the construction of a forensic hospital at Western State Hospital in Lakewood. The investment would provide 350 new beds at the facility.

Budget writers also are proposing a $20.1 million investment for Maple Lane, a new residential treatment facility near Rochester in Thurston County, and the first of its kind in Washington state. Funding would go towards rapidly increasing the bed capacity at the facility.

An additional $20.6 million in funding would be allocated to the Washington State Department of Social and Health Services to construct another behavioral health facility in Clark County.

About $141 million in funding would go towards other community-based behavioral healthcare projects such as the Nisqually Tribe Healing Village near Olympia and Compass Health in Everett.

Education

Higher education would receive $1.2 billion total in funding under the proposed budget. Four-year colleges as well as community colleges would receive major investments, if the proposal is passed.

The University of Washington and Washington State University would see major investments in big projects. In total, both schools would be provided with $396 million in funding a new Engineering Student Success Building at WSU as well as support for the Magnuson Health Sciences building at UW.

Senate lawmakers also are proposing $894 million in funding for K-12 schools, with $588 million going to the School Construction Assistance Program. About $100 million of that is set aside for small districts and Tribal compact schools for repair or replacement of buildings.

About $40 million would be provided for seismic safety grants.

Natural resources

Natural resource projects would receive $2.3 billion this year if the Senate’s capital budget is passed.

Under the proposal, over $778 million would be used to improve water quality in the state, with $670 million of that allocated for the Water Pollution Control Revolving Program.

Salmon recovery would see major investments, with $95 million going to the Salmon Recovery Funding Board. Other investments include $44 million for the Duckabush Estuary Restoration Project, $54.1 million for the Puget Sound Acquisition and Restoration Program, and $61.8 million for the Floodplains by Design Program.

Funding also would be provided for toxic cleanup and prevention, outdoor recreation and conservation, state parks, trust lands, and air quality in the state.

Capitol Campus

The Senate’s capital budget proposal also includes nearly $100 million for the Legislative Campus Modernization plan, which includes major improvements to the Newhouse, Pritchard and O’Brien buildings and the Temple of Justice, and a new roof for the old capitol that houses the Office of the Superintendent of Public Instruction.

That accounts for nearly a third of the money earmarked for the 22nd Legislative District that includes Olympia.