This morning, the Senate supplemental capital budget proposal was released by Ways & Means Capital Budget Vice Chair Mullet and Ranking Member Schoesler. (It is scheduled to be heard by Ways & Means this afternoon.) It would increase capital budget appropriations by $1.277 billion (14.7%). Revised 2023–25 capital budget appropriations would be $9.938 billion, which is $43.8 million lower than Gov. Inslee had proposed.

Importantly, the Senate proposal would increase appropriations from the common schools construction account (CSCA) by just $307.8 million. The governor’s proposal would increase CSCA appropriations by $562.9 million. As I wrote this morning, when the biennial capital budget was enacted last year, no capital gains revenues were expected to be deposited in the CSCA. Actual capital gains revenues deposited in the CSCA in FY 2023 turned out to be $347.5 million. Thus, the proposal would wisely only spend the capital gains revenues that have actually been collected. The summary documents note uncertainty of the revenue estimates and the possibility that voters could pass I-2109, which would repeal the capital gains tax: “Due to the uncertainty of this resource beyond November 2024, the Senate capital proposal does not assume capital gains revenues beyond 2024.  Should the initiative not pass, those revenues will be available for the 2025 Legislature.”

Similarly, the summary documents note the possibility that I-2117 (which would repeal the climate commitment act) could be approved by voters:

Due to the uncertainty of these funds beyond November 2024, the Senate proposed capital budget assumes a lower revenue collection in calendar year 2024 based on the secondary trading market price compared to the Department of Ecology’s baseline forecast. The Senate capital budget proposal also delays the start date of many new programs until January 2025.  In the event I-2117 passes, those appropriations taking effect in January 2025 will lapse.

That said, the Senate proposal would increase appropriations from the climate commitment act (CCA) accounts by $655.2 million, which is $165.8 million more than the governor’s proposal. (Note, though, that CCA money is appropriated across the capital, operating, and transportation budgets. It is not necessarily the case that the three Senate budgets together would appropriate more from the CCA accounts than the governor’s proposals did.)

The Senate proposal would save $294.6 million in the school construction assistance program (SCAP) due to “lower than anticipated demand.” Those savings would be offset by $144.1 million to increase the construction cost allocation factor in the SCAP state match calculation from $272 per square foot to $400 per square foot. Additionally, the proposal assumes passage of SB 5789, which would increase the SCAP state match for state and local taxes.

Other major appropriations in the Senate proposal include:

• $110.9 million for small district & tribal compact schools modernization
• $60.0 million for skills center construction grants
• $40.0 million for school district indoor air quality & energy efficiency
• $35.0 million for a school modernization loan program (SB 5344 as amended)
• $111.7 million for housing trust fund projects
• $56.6 million for local and community projects
• $55.0 million for multifamily building efficiency grants
• $45.9 million for clean building performance grants
• $95.6 million for broadband infrastructure federal match projects
• $105.0 million for community EV charging
• $50.0 million for clean energy community grants
• $38.0 million for community solar resilience hubs
• $44.6 million to purchase and modernize Olympic Heritage Behavioral Health