Transcript Highlights:

• Everybody looked at the funding sheet questions on the funding sheets.
• We had to fund our own capital. We were left the fire and the reconciliation.
• Under our own capital.
• contingency fund.
• rainy day fund, yes.

Bills: SB190, HB247, HB2, HB8

Keywords: cancer treatment, revenue bonds, Gila Regional Medical Center, Nor-Lea General Hospital, healthcare funding, capital outlay, capital projects, appropriations, reversion, encumbrance, reauthorization, reappropriation, general fund, capital development and reserve fund, tribal infrastructure project fund, Department of Finance and Administration, DFA, state board of finance, severance tax bonds, tax-exempt bonds

Summary: The committee reviewed drafting instructions and spending sheets for House Bill 2, focusing on both recurring and nonrecurring appropriations, reserve levels, and several late changes. Staff explained that the package would leave reserves around 28% under the current scenario, with the possibility of rising to about 30% if a separate natural disaster reform bill is enacted. Members discussed how disaster funding would be handled through a replacement Section 8 and the appropriation contingency fund, and whether the operating reserve could be tapped with explicit authorization. There was also clarification on fund types, including other state funds and interagency transfers, and on how line items were reflected in the spreadsheets. A major point of debate was how to offset additions by reducing funding elsewhere. Members discussed shifting money from the state fair/multipurpose arena request, the Office of Natural Resources Trustee, and other capital items to accommodate changes. Several senators raised concerns about cutting the Office of Natural Resources Trustee too deeply and about the purpose of those funds, including possible land purchases and floodplain mitigation in Ruidoso. The committee also discussed whether the state fair money should be reduced, with some members supporting a $25 million restoration and others preferring to leave the executive’s request intact. Staff noted that some reductions were not true cuts but swaps or offsets, such as moving local road money and using excess capital outlay reserves. Other corrections and policy items were addressed, including an increase for UNM and NMSU stadium funding, a correction to a project distribution on line 105, and funding for the Health Council. Members also noted that the public employee 1% raise was no longer funded because recurring capacity was used elsewhere, and that no COLA was included. After discussion, Senator Woods moved to adopt the drafting instructions, Senator Gonzalez seconded, and the motion passed without objection. The committee then directed staff to prepare a catch-up cleanup version of House Bill 2 for later review and said House Bill 8 would be taken up the next morning.

Transcript Highlights:

• The Capital Investment Committee for May 6th is called to order. A quorum is present.
• Previous to being on Capital Investment, I did not know the needs of the state, and the tours really
• The old name for capital investment was public works, and I sometimes think that's a better name because
• to be able to fund them.
• With that, members, at this time, any future meetings at the Capital Investment Committee, this is a

Bills: HF719, HF2484, HF2486

Keywords: safety, school transportation, infrastructure, capital investment, state bonds, library construction, education funding, early childhood, child protection, funding, bonds, education facilities

Transcript Highlights:

• [Music] The Capital Investment Committee for May 6 is called to order. A quorum is present.
• I've been learning quite a bit and speaking about capital investment right now.
• I've been learning quite a bit and speaking about capital investment right now.
• And so, uh, just, you know, the old name for capital investment was public works.
• others that there is no possible way they have the ability to fund them.

Bills: HF719, HF2484, HF2486

Keywords: safety, school transportation, infrastructure, capital investment, state bonds, library construction, education funding, early childhood, child protection, funding, bonds, education facilities, 1183, house

Transcript Highlights:

• Everybody looked at the funding sheet questions on the funding sheets.
• The general fund.
• We had to fund our own capital. We were left the fire and the reconciliation.
• contingency fund.
• day fund, yes.

Bills: SB190, HB247, HB8

Keywords: cancer treatment, revenue bonds, Gila Regional Medical Center, Nor-Lea General Hospital, healthcare funding, capital outlay, capital projects, appropriations, reversion, encumbrance, reauthorization, reappropriation, general fund, capital development and reserve fund, tribal infrastructure project fund, Department of Finance and Administration, DFA, state board of finance, severance tax bonds, tax-exempt bonds

Transcript Highlights:

• These are the changes to the capital outlay process.
• Improvement Plan, ICIP, to receive capital appropriations.
• Infrastructure Capital Improvement Plan, ICIP, to receive capital appropriations.
• project through a capital outlay process.
• capital outlay process in the future?

Bills: SB190, HB247, HB8

Keywords: cancer treatment, revenue bonds, Gila Regional Medical Center, Nor-Lea General Hospital, healthcare funding, capital outlay, capital projects, appropriations, reversion, encumbrance, reauthorization, reappropriation, general fund, capital development and reserve fund, tribal infrastructure project fund, Department of Finance and Administration, DFA, state board of finance, severance tax bonds, tax-exempt bonds

Transcript Highlights:

• Deposits $56 million of excess funds in the various funds, mainly in the State Emergency Response Fund
• revitalization fund, LED initiative funds, and creating the Strategic Investments Across Louisiana Fund
• Fund.
• Fund.
• , which is an agency working capital fund authorized for use in covering office expenses, including employees

Bills: HB1, HB2, HB3, HB312, HB313, HB314, HB383, HB983, HB1126, HCR3

Keywords: state budget, appropriations, education funding, public health, social services, government operations, state institutions, capital outlay, budget, infrastructure, appropriation, general obligation bonds, bond authorization, capital improvement, financial management, state treasury, funding, state general fund, local government, fiscal year

Transcript Highlights:

• the funding recaptured from these<00:04:22.079><c> cancel</c><00:04:22.600><c> appropriation</c><00:
• </c><00:04:32.960><c> we're</c> that we put some of these funds we're that we put some of these funds
• Please continue to implement curriculum and fund teacher training.
• </c><01:24:35.719><c> for</c> mandates taking away funding for mandates taking away funding for something
• Okay, so I want to talk about funding since we're in the Education Finance Committee here.

Bills: HF29, HF921, HF922, HF1048, HF1049

Keywords: railroad, infrastructure, transportation funding, environmental remediation, capital investment, HF921, tax increment financing, TIF, excess tax increment, school district aid, levy adjustment, property tax levy, education finance, Minnesota education aid, decertification, local government finance, school funding formula, state aid reduction, referendum equalization aid, debt service equalization

Transcript Highlights:

• </c> aded Fund balances to their general fund aded Fund balances to their general fund Community<00:51
• These funds support long-term planning, such as capital projects, facility and equipment improvements
• These funds support long-term planning, such as capital projects, facility and equipment improvements
• These funds support long-term planning, such as capital projects, facility and equipment improvements
• And what we've done with funds—state funds, what we've done with federal funds before and during the

Bills: HF6, HF52, HF53

Keywords: education, literacy, science of reading, school performance, funding flexibility, innovation zones, equity and inclusion, HF52, New Germany, wastewater treatment, wastewater facility, sewer infrastructure, capital investment, bonding bill, state bonds, Public Facilities Authority, municipal infrastructure, water quality, sanitation, sewage treatment

Bills: SB2003

Keywords: higher education, student loans, scholarships, capital projects, workforce development, funding, North Dakota university system, 908, all

Summary: The committee reconvened to act on Senate Bill 2003, the higher education budget. Members first replaced prior intent language related to the University of North Dakota School of Medicine and Health Sciences with new language stating it is the intent of the 69th Legislative Assembly that an Allied Health Facility expansion be completed, and that the 70th Legislative Assembly consider supporting completion of the project. The chair explained the change was meant to avoid binding the next legislature to a specific $50 million commitment while still helping UND with fundraising. The amendment was moved, seconded, and adopted unanimously. The committee then addressed funding for Minot State University’s “Advancing Students Toward Education and Employment” program. After some discussion about the amount already in the bill and what had been previously agreed to, the committee approved adding $1 million, bringing the total appropriation for that line to $1.5 million. Members referenced prior testimony in support of the program. That amendment also passed unanimously. After approving the amendments, the committee adopted a do-pass recommendation on Senate Bill 2003 as amended, with Representative Sanford designated as the bill carrier. The chair noted the bill would likely be taken up on the floor later in the week. The committee also said it would return to commerce-related work the next day and then adjourned for the day.

Transcript Highlights:

• We're in the ongoing funding changes.
• Okay, so that's general fund money. So when the Senate had a committee, they did not fund it.
• The ads funding for tourism.
• We added funding. Actually, we moved funding for the Native American Small Business Grant.
• And then Section 20 is just clarifying what sources of funding can be deposited into the UAS funds.

Bills: SB2003

Keywords: higher education, student loans, scholarships, capital projects, workforce development, funding, North Dakota university system, 908, all

Summary: The committee first reconsidered Senate Bill 2003 in the higher education budget and adopted several changes. It removed $3 million for enterprise resource planning, struck $2 million for a grant program for students who are pregnant or recently gave birth, and then added $3 million back into workforce education and innovative grants, restoring that line to $12 million. Members also discussed a possible purchase of the 19th Avenue building in Fargo for the State School of Science, but the motion was withdrawn for later consideration. Other higher ed items were briefly noted, including tribally controlled community colleges and a state magazine funding line, but no final action was taken on the building proposal during this segment. The committee then moved to Senate Bill 2018, the Commerce budget, and reviewed a long list of funding items. It restored a vacant workforce FTE, increased tourism marketing to $10 million and Find the Good Life to $5 million, raised Operation Intern by $1 million, removed a $100,000 infrastructure study, increased autonomous agriculture grants to $15 million, and set the Regional Workforce Impact Program at $10 million. It also kept or adjusted several other items, including the uncrewed aerial vehicle replacement program, the global talent office, tribally controlled community colleges, Native American small business grants, and technical skills training grants. A major new provision would transfer $50 million total, split between SIF and Bank of North Dakota profits, to the Theodore Roosevelt Library Museum Endowment Fund, matching a private fundraising challenge; members expressed both support and concern, and said they would revisit it later. The committee also discussed language to allow commercialization of Vantis and to permit the Turtle Mountain gaming compact proposal to move forward with required federal approvals, while clarifying that a previously discussed $100,000 study had been removed. Commerce officials said the workforce language was intended to centralize data and strategy, and they noted Operation Intern would need an emergency clause because applications begin in May. No final vote on the Commerce budget was taken in this segment, and the chair said the committee would return later to finish both budgets.

Transcript Highlights:

• Capital Building Fund are Sections 9, 10, 21, and 22.
• for the capital building fund.
• capital assets line if the board determines that additional funds are needed for that capital asset.
• So that's general fund? I'm sorry, with that general fund? So, Mr.
• it in general fund just to make it clear what the funding source was.

Bills: SB2003

Keywords: higher education, student loans, scholarships, capital projects, workforce development, funding, North Dakota university system, 908, all

Summary: The committee met to work through the higher education budget, beginning with a conflict-of-interest request from Representative Martinson, who was excused from voting because of a partnership that leases office space to Bismarck State College. Members then reviewed the higher education institution budget sheets, covering ongoing and one-time funding items for campuses and system projects such as BSC housing, Lake Region roof repairs, UND’s STEM and National Security Crossroads projects, the UND allied health facility, NDSU projects including New Horizons, DSU deferred maintenance and campus security, Mayville’s Old Main, Minot projects, and the regional health institutes. Members also discussed student financial assistance, the professional student exchange program, IT security funding, and workforce/education innovation grants. Several amendments and policy questions were debated. The committee adopted an amendment to make workforce education innovation grants competitive rather than automatically distributed, and then voted to remove language prohibiting those funds from being used to duplicate academic programs. Members also removed similar anti-duplication language from the New Horizons section. They agreed to extend the UND hyperbaric chamber transfer authority to 2027 and clarified language around UND land-sale proceeds. A proposed amendment to add $5.6 million for the Wahpeton State School of Science building purchase failed for lack of a second, and a proposal to restore fetal alcohol spectrum disorder funding to UND was left for conference. The committee also discussed, but did not add, a tuition cap change, a study on the Praxis exam, and several governance-related provisions. The committee spent significant time on broader higher education policy items, including a $3 million enterprise resource planning request for the university system, a $2 million grant program for students who are pregnant, recently gave birth, or are caring for young children, and a $1.1 million request for library age-verification software tied to the Odin system. Members also discussed dual-credit authority for UND and NDSU, a goal for the UND medical school to increase North Dakota resident enrollment, and intent language regarding the commissioner/chancellor model and presidential search authority. At the end of the meeting, the committee approved the amendments and then gave the higher education budget a do-pass recommendation as amended, with Representative Sanford designated as the carrier. The Forest Service budget was also approved, including two additional FTEs, and the committee adjourned after noting it would continue with other budgets the next day.

Transcript Highlights:

• Grant funds are able to be used to leverage their capital fundraising.
• However, this policy is intended to inform future capital budget funding after 2028.
• However, this policy is intended to inform future capital budget funding after 2028.
• We need a thoughtful approach for how we're going to allocate capital funds.
• It's modeled on the successful community and technical college capital funding.

Bills: HB2330, HB2338

Keywords: energy systems, capital funding, state campus, school infrastructure, sustainability, weatherization, energy efficiency, community projects, environment, 904, all

Summary: The committee first received a Department of Commerce overview of capital budget grant programs, including behavioral health facilities, Building for the Arts, Building Communities Fund, early learning facilities, library capital improvements, and youth recreational facilities. Commerce described program purposes, eligibility, match requirements, funding cycles, and example projects such as an early learning center in Spokane, a new library in Stevens County, and a youth clubhouse in Prosser. Members asked about behavioral health capital projects, including how many facilities had been built or retrofitted and how capital and operating funding are coordinated; Commerce said it could provide follow-up data and explained that it works on capital while HCA, DSHS, and DOH handle operating requests. Members also raised concerns about empty facilities and nonprofit financial accountability, and Commerce said it reviews applicants’ financials, relies on expert boards and partners, and uses monitoring and compliance staff to address problems. The committee then heard an update on the Clean Buildings Performance Standard from Commerce. The presentation reviewed Washington’s clean buildings law, recent changes under House Bill 1543, compliance requirements for Tier 1 and Tier 2 buildings, incentive programs, and district energy system decarbonization planning for state campuses. Commerce reported nearly 5,000 inquiries in 2025, about 28,000 covered buildings statewide, and that over half of Tier 1 buildings are already meeting targets. It also said 10 fellows had assisted more than 250 buildings in 16 counties and that 27 of 34 campus decarbonization plans were received, with common themes including electrification, geothermal, thermal storage, aging infrastructure, grid constraints, and high capital costs. Members asked what legislative action could help, and Commerce said it had just completed rulemaking under HB 1543 and was still learning what problems remain. Western Washington University and Corex then presented on WWU’s campus heating conversion project and a possible district energy partnership with the Port of Bellingham. WWU described its aging steam system, high maintenance costs, emissions, and the $51 million in Climate Commitment Account funding it has received for a phased transition to a hot-water system using technologies such as geo-exchange, heat recovery chillers, and air-source heat pumps. Corex described its existing low-carbon district energy system at the port, which uses waste heat and could potentially be extended to WWU and nearby properties, including possible sewer-heat recovery. Members asked about sewer-heat examples and the broader public responsibility for campus decarbonization. The work session ended with discussion of House Bill 2330, which would create a Campus Energy Upgrades Committee in Commerce to score and prioritize state campus district energy projects, report on barriers to energy-as-a-service and public-private partnerships, and align future capital budget requests with the committee’s recommendations. Testimony on HB 2330 included support from Washington State University, the University of Washington, and a mechanical contractor, with concerns about deferred maintenance, funding predictability, and the need for larger capital investment. The committee also heard House Bill 2338, which would authorize community-scaled weatherization projects under Commerce’s low-income weatherization program. Staff explained that the bill would allow weatherization funding and match dollars to be used for neighborhood-scale projects serving multiple dwelling units, while still prioritizing low-income households, and that the fiscal note estimates about $273,000 in FY 2027 and ongoing administrative costs. The prime sponsor said the bill would expand access without undermining the existing program and improve energy efficiency and household affordability. Testifiers from the Washington State Community Action Partnership and Spark Northwest supported the bill, saying it would help scale weatherization to mobile home parks and low- to moderate-income neighborhoods, improve health and safety, reduce utility bills, and make it easier to serve rural and remote communities. No votes were taken in the transcript.

Transcript Highlights:

• We're here this morning to begin with House Bill 111, which is state-funded capital construction.
• I have prepared a brief overview of this bill, House Bill 111, State Funded Capital Construction.
• </c><00:00:55.680><c> Capital</c> House Bill 111, State Funded Capital House Bill 111, State Funded Capital
• The four projects within the CAPCON bill, the state-funded capital construction bill, are the same ones
• capital construction bill state funded capital construction bill are<00:13:38.320><c> the</c><00:13:

Bills: HB0111, HB0112, HB0122

Keywords: capital construction, state funding, Wyoming, major maintenance, community colleges, task force, legislative services, budget appropriation, unexpended funds, sunset clause, healthcare, rural health, transformation program, funding, incentives, training, access, perpetuity fund, 916, all

Transcript Highlights:

• </c><00:04:56.080><c> a</c> difference in our schools by funding a difference in our schools by funding
• </c><00:09:32.959><c> resources</c> state, and federal tax funded resources state, and federal tax funded
• </c> neighboring states how they're funding neighboring states how they're funding their<00:29:51.120
• </c><00:30:10.720><c> mechanisms</c> see are there other funding mechanisms see are there other funding
• and half will be federal fund.

Bills: HB0111, HB0112, HB0122

Keywords: capital construction, state funding, Wyoming, major maintenance, community colleges, task force, legislative services, budget appropriation, unexpended funds, sunset clause, healthcare, rural health, transformation program, funding, incentives, training, access, perpetuity fund, 916, all

Transcript Highlights:

• There's not enough general funds, and so then up to $5 million of the LISRA is the backstop.
• There's not enough general funds, and so then up to $5 million of the LISRA is the backstop.

Bills: HB0111, HB0112, HB0122

Keywords: capital construction, state funding, Wyoming, major maintenance, community colleges, task force, legislative services, budget appropriation, unexpended funds, sunset clause, healthcare, rural health, transformation program, funding, incentives, training, access, perpetuity fund, 916, all

Transcript Highlights:

• 3, from page line 10 to 13, you're going to find that this appropriation of $200,000 is a general fund

Bills: HB0111, HB0112, HB0122

Keywords: capital construction, state funding, Wyoming, major maintenance, community colleges, task force, legislative services, budget appropriation, unexpended funds, sunset clause, healthcare, rural health, transformation program, funding, incentives, training, access, perpetuity fund, 916, all

Transcript Highlights:

• </c> greater Minnesota that received funding. greater Minnesota that received funding.
• investment committee general capital investment committee general fund<00:39:45.520><c> uh,</c><00:39
• We greatly appreciate this opportunity to highlight the need for funding in a significant capital bonding
• </c> uh 277 million in funding requested. uh 277 million in funding requested.
• </c> funding for over the next few years. funding for over the next few years.

Bills: HF4736, HF4737, HF3806, HF3352, HF4840, HF3748

Keywords: emergency shelter, grant program, homelessness, capital investment, Minnesota Statutes, appropriation bonds, public funding, housing, infrastructure bonds, funding, appropriation, Minnesota constitutional amendment, public debt, state bonds, general obligation bonds, information technology, IT infrastructure, software licenses, technology modernization, capital improvements

Transcript Highlights:

• In Washington, pre-designs for state-funded capital projects include identification of the problem that
• Pre-designs are generally required for state-funded capital construction projects valued over $10 million
• to submit a capital budget form called the C-100 for major capital project funding requests.
• The last programs I will mention are not capital-funded programs, and I do recognize we're in the capital
• The last programs I will mention these are not capital funded programs and I do recognize we're in the

Bills: HB2470, HB2353, HB2420, HB2338

Keywords: HB2470, school construction assistance, capital budget, school facilities, on-base schools, military base schools, military installations, public school construction, school plant projects, state funding assistance, superintendent of public instruction, OSPI, school capital funding, instructional space, school district construction, alternative learning experience, ALE, free and reduced-price meals, special housing burden, district growth

Summary: The committee held public hearings on three capital-related bills. HB 2353 would raise the pre-design threshold for state-funded capital projects from $10 million to $15 million and require annual inflation adjustments beginning in 2027. Staff and the prime sponsor said the change would reduce delays and costs for projects, with testimony from Steve DuPont supporting the bill as a way to avoid unnecessary pre-design work and construction escalation. The hearing on HB 2420 covered increases to the Small Works Roster threshold for public works contracts, with a proposed substitute delaying the first increase to January 1, 2027. Representative Zahn and several stakeholders, including universities, cities, ports, counties, and water districts, testified in support, saying the bill would reduce administrative burden, speed projects, and better reflect current construction costs. The committee also heard HB 2470, which would change School Construction Assistance Program rules for school facilities located on military bases. Staff explained that on-base instructional space would be excluded from district inventory calculations, increasing eligibility, and that state assistance would be based on project cost minus federal funding. Representative Leavitt said the bill would help districts like Clover Park and Medical Lake better serve military families. OSPI, Clover Park School District, and the Veterans Legislative Coalition testified in support, though OSPI noted it was working on an amendment to replace a federal-funding backfill with a 15% increase in the SCAP funding assistance percentage to comply with federal law. In executive session, the committee moved HB 2338, which would make community-scaled projects eligible under the Department of Commerce low-income weatherization program, out of committee with a due-pass recommendation by a 17-0 vote, with two members excused. The committee then held a work session with the Recreation and Conservation Office on its competitive grant programs, including the Washington Wildlife and Recreation Program, youth athletic facilities, community forests, aquatic lands, boating, firearms and archery ranges, and federal trail and conservation programs. Members asked about demand, ADA compliance, match requirements, geographic distribution, and outreach to underserved communities; RCO said it uses advisory committees, regional allocation methods in some programs, and technical assistance to broaden access and improve distribution.

Transcript Highlights:

• We funded your other priority for capital outlay. We've already done that.
• Did you ask the governor for any of her capital to fund this? No, actually, Mr.
• Any cap of her capital to fund this? No, actually, Mr.
• Chair, something to consider with the sweeps: capital historically is funded either through STBs or through
• However, those are our projects that Capital historically is funded either through STBs or through general

Bills: SB152, SB145, HB2, SB190, HB247

Keywords: telecommunications, low-income assistance, lifeline, broadband, rural broadband, universal service fund, public regulation commission, PRC, 911 surcharge, telecommunications relay service, VoIP, mobile service, internet affordability, digital equity, digital inclusion, rural internet, broadband infrastructure, eligible telecommunications carrier, ETC, tribal consent

Summary: The committee first set aside Senate Bill 247 because the Attorney General and bill sponsor were not present. It then heard Senate Bill 190, which would authorize bonding to help Healer Regional Medical Center in rural southwest New Mexico replace an aging linear accelerator used for cancer radiation treatment. The sponsor and hospital representatives said the equipment is at end of life and that replacing it would keep patients from having to travel long distances for care. The committee adopted a friendly amendment adding an emergency clause, but members then questioned the financing, noting the $5.7 million cost, the lack of local matching funds, and the fact that the equipment’s useful life is only about 10 years while the proposed bonds would run for 30 years. After extended discussion about interest costs and timing, committee members explored alternatives to reduce the state’s borrowing burden, including using existing rural health care funds, federal grant money, or structuring a county lease arrangement rather than issuing bonds. The bill was left pending while staff and the sponsor were asked to look into those options and report back. The committee also briefly heard from the Department of Justice about concerns raised by the Public Education Department regarding Gallup-McKinley and online learning companies; DOJ said investigations were ongoing but it could not say whether a lawsuit would be filed. Members expressed concern about possible large liabilities and discussed bringing the Attorney General and PED Secretary back in executive session. The meeting then shifted to House Bill 2 and related budget matters. Staff walked members through numerous line items, flagging some as potentially duplicative, unspent, or in need of further review, including attorney general litigation funds, rural health, education, transportation, tourism, energy, and economic development items. The committee adopted the “grow” spreadsheet after members said they had reviewed it, and then discussed reserve targets. Staff presented several scenarios to raise reserves from about 26.7% toward the 27.5% target, including cuts to natural resource, environmental, higher education, and transportation appropriations. Members generally favored a flexible “scenario five” approach and were reluctant to sweep older capital outlay projects immediately, preferring to wait until the capital outlay changes bill is resolved. The committee planned to continue the budget discussion the next morning.

Transcript Highlights:

• We’ll open the Capital Budget Committee meeting.
• The commission’s operating costs are funded through fees earned on its programs, and it is not funded
• The funds are not coming directly from our general fund or any of that.
• The estimated fiscal note shows capital budget impacts of $54,600 in total funds over the 2025-27 biennium
• , but the legislature in the past has taken funding from the assistance account to fund the broadband

Bills: HB2273, SB5188, HB2353, HB2420, HB2470

Keywords: embodied carbon, building materials, sustainability, construction, environment, broadband, infrastructure, loan assistance, economic development, technology access, HB 2353, predesign thresholds, capital construction, capital budget, major capital projects, Office of Financial Management, OFM, Washington state, state agencies, infrastructure planning

Summary: The Capital Budget Committee heard public testimony on Substitute House Bill 2236, which would update the Washington State Housing Finance Commission’s statutes. Staff explained that the bill would authorize the commission to make direct mortgage loans for multifamily housing, clarify that it is not a retail mortgage lender, extend bond counsel terms, remove notice requirements before bond issuance, and repeal outdated provisions including the housing finance program and housing finance plan requirement. The sponsor and commission representatives said the changes would modernize the agency, improve efficiency, and give it more flexibility to provide gap financing for affordable housing without using state general funds. Testimony was generally supportive, with some questions focused on housing access for communities of color, the effect of higher interest rates, and the possible role of longer mortgage terms; the commission emphasized its down payment assistance programs and work with banks and developers. The hearing on SHB 2236 was then closed. The committee then heard House Bill 2273 on reducing embodied carbon emissions in buildings and building materials. Staff described requirements for the State Building Code Council to adopt embodied-carbon reduction standards for large projects, phased implementation, reporting, a public database and website through the Department of Commerce, and random audits. The prime sponsor said the bill responds to rising energy demand and would help lower emissions and potentially reduce costs by encouraging innovation and allowing embodied-carbon savings to count in future energy-code tradeoffs. Supporters from environmental justice and architecture groups said the bill would address pollution upstream, align Washington with other jurisdictions, and could be cost-neutral on many projects. Opponents, including the Washington Aggregate and Concrete Association and Washington Citizens Against Unfair Taxes, argued the bill could raise costs, create sourcing and timeline problems, and questioned the school construction exemption. The hearing on HB 2273 was then closed. The committee also heard Senate Bill 5188, which would allow the Public Works Board to issue loans for broadband infrastructure repair and replacement under the broadband service expansion program, with priority for areas that would become unserved without the work. Staff noted operating and capital costs in the fiscal note and said an updated note had been requested. The Association of Washington Cities testified with concerns that expanding the program could signal further sweeps from the Public Works Assistance Account and undermine confidence in funding for other infrastructure needs, while a committee member raised whether the program should instead be handled through the Curb Board. The hearing was closed after no further testifiers appeared. In executive session, the committee reviewed House Bill 2353, House Bill 2420, and House Bill 2470. HB 2353, which raises the predesigned threshold for capital construction projects from $10 million to $15 million and indexes it to inflation, was passed out of committee by voice vote with an 18-0-1 result. The committee then adopted a proposed substitute for HB 2420, which increases the small works roster contract limit to $530,000 and changes the effective date to January 1, 2027; it also passed 18-0-1. Staff also briefed HB 2470, including a proposed substitute that would increase state funding assistance for on-base school construction projects by 15% and remove a federal-funding offset requirement, but no vote on that bill occurred in the transcript. The chair announced another hearing and executive session for Friday and asked members to submit amendments by 10 a.m. the next day.