Transcript Highlights:

• So welcome to your state capital.
• So welcome to your<00:03:01.760><c> state</c><00:03:02.000><c> capital.
• Thank you for joining us and contributing to the discussions here at the state capital.
• </c><00:06:53.360><c> at</c><00:06:53.520><c> the</c><00:06:53.680><c> state</c><00:06:53.919><c> capital
• </c> discussions here at the state capital. discussions here at the state capital.

Bills: SB2042, SB2892, SB1163, SB2076, SB2116, SB2122, SB99, SB2088, SB2114, SB2117, SB2118, SB2245, SB2386, SB2079, SB2043, SB2155, SB2268, SB2932, SB3240

Keywords: SB2042, Hawaii insurance, captive insurance, sponsored captive, class 4 captive, minimum capital, surplus requirement, unimpaired capital, insurance commissioner, HRS 431:19-104, commercial insurance, risk retention, insurance regulation, financial solvency, captives, Ways and Means, CPN, feral chickens, chickens, animal control

Bills: SB2042, SB2892, SB1163, SB2076, SB2116, SB2122, SB99, SB2088, SB2114, SB2117, SB2118, SB2245, SB2386, SB2079, SB2043, SB2155, SB2268, SB2932, SB3240

Keywords: SB2042, Hawaii insurance, captive insurance, sponsored captive, class 4 captive, minimum capital, surplus requirement, unimpaired capital, insurance commissioner, HRS 431:19-104, commercial insurance, risk retention, insurance regulation, financial solvency, captives, Ways and Means, CPN, feral chickens, chickens, animal control

Transcript Highlights:

• House Bill 2 by Representative Bacala provides for the comprehensive capital outlay budget.
• authorizes the state, through the State Bond Commission, to sell general obligation bonds to fund our capital
• Bond Commission meeting, the state will be selling general obligation bonds to continue to fund the capital
• And bond proceeds are deposited into the capital outlay escrow account.

Bills: HB2, HB3

Keywords: capital outlay, budget, infrastructure, appropriation, general obligation bonds, bond authorization, capital improvement, financial management, state treasury, 965, house, all

Transcript Highlights:

• They get 1% off the capital. I know what art in public places is, Mr. Chairman.
• We still had to put in our own capital, which has never happened before.
• We had to fund our own capital. We were left the fire and the reconciliation.
• So this is using public school capital outlay reserves, excess money that they can't mobilize to help
• pay for the capital outlay package for higher ed.

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.
• But yep, 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.

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:

• , and certain capital projects below the threshold, such as high-risk projects, may also be required
• to submit a capital budget form called the C-100 for major capital project funding requests.
• Thank you, Capital Budget Committee. I'm excited to be here.
• I didn't even recall that you had jumped ship here from the capital budget. I miss you guys.
• The last programs I will mention are not capital-funded programs, and I do recognize we're in the capital

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:

• The Finance Committee substitute for Senate Bill 240, as amended, appropriates $1.3 billion to capital
• Chair, could you, when we do capital outlay projects for... let's say a backhoe, or as opposed to maybe
• I mean, not for capital outlay bills again, but I just wanted to make that clear. Mr.
• He works in the Department of Finance Administration, and he actually heads up our capital outlay division

Bills: SB240

Keywords: capital outlay, capital projects, severance tax bonds, general fund appropriations, supplemental severance tax bonds, UNM School of Medicine, University of New Mexico, infrastructure, state buildings, courts, schools, higher education, road improvements, water and wastewater, tribal infrastructure, tribal projects, public safety, housing, emergency services, bonding

Transcript Highlights:

• Capital-intensive industries such as energy, manufacturing, and infrastructure are especially sensitive
• Meanwhile, peer states are moving in the opposite direction, attracting capital, not taxing it away.
• It allows local governments to contribute capital and things like infrastructure.
• You expect us to be back later today on capital outlay? Is that what I understand, Mr. Chairman?
• Quick note: At the call of the Chair, we'll return up here whenever the Senate passes the capital outlay

Bills: SB240

Keywords: capital outlay, capital projects, severance tax bonds, general fund appropriations, supplemental severance tax bonds, UNM School of Medicine, University of New Mexico, infrastructure, state buildings, courts, schools, higher education, road improvements, water and wastewater, tribal infrastructure, tribal projects, public safety, housing, emergency services, bonding

Transcript Highlights:

• They get 1% off the capital. I know what Art in Public Places is, Mr. Chairman.
• We still had to put in our own capital, which has never happened before.
• We had to fund our own capital. We were left the fire and the reconciliation.
• Under our own capital.
• pay for the capital outlay package for higher ed.

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:

• We’ll open the Capital Budget Committee meeting.
• budgeted entity of the state; therefore, there’s no impact estimated for either the operating or capital
• The estimated fiscal note shows capital budget impacts of $54,600 in total funds over the 2025-27 biennium
• Department of Commerce identified Department of Commerce identifies both operating and capital costs
• And then on the capital side, Commerce assumes about $107,000 a year beginning in fiscal year 27 to manage

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.

Transcript Highlights:

• Signed in other on the Senate capital budget. I'll start...
• Thank you for your work on the capital budget.
• Senate capital budget as well.
• CCA Capital is for the capital budget.
• Currently, it's capital and transportation, but historically only capital has spent out of this particular

Bills: SB6003, HB2353, HB2431, HB1983

Keywords: capital budget, funding, infrastructure, state projects, budget allocation, HB 2353, predesign thresholds, capital construction, major capital projects, Office of Financial Management, OFM, Washington state, state agencies, infrastructure planning, construction costs, inflation adjustment, capital facilities, project review, allotments, lease approval

Transcript Highlights:

• Investment and continued Capital Investment for maintenance purposes.
• Investment and continued Capital Investment for maintenance purposes.
• Investment and continued Capital Investment for maintenance purposes.
• show up as a potential earmark in a future capital budget bill.
• show up as a potential earmark in a future capital budget bill.

Bills: HF4470, HF2418, HF3417, HF3365, HF3463

Keywords: HF4470, Melissa Hortman, memorial, statue, memorial garden, State Office Building, Capitol Mall Design Framework, capital investment, appropriation, Capitol Area Architectural and Planning Board, Department of Administration, public art, commemorative monument, landscaping, artist selection, family consultation, Minnesota legislature, state building site, capital appropriation, political subdivisions

Transcript Highlights:

• Thank you for joining us today for the Capital Committee.
• It reflects both operating costs for the Department of Labor and Industries as well as capital costs.
• I will skip over the operating costs unless anybody has questions, but I'll say on the capital side,
• projects, as you know, because many of our capital projects are not large.
• We have one more session for the Capital Budget Committee.

Bills: HB2295

Keywords: Washington capital budget, supplemental capital budget, capital appropriations, state building construction account, taxable building construction account, climate commitment account, natural climate solutions, housing trust fund, affordable housing, supportive housing, homelessness, manufactured home communities, mobile home parks, school construction, school modernization, school seismic safety, healthy schools, school electrification, SCAP, behavioral health facilities

Transcript Highlights:

• Welcome to the Capital Budget Committee.
• Today we're going to hear HB 2295, which is our supplemental capital budget.
• construction projects, $69.5 million for capital and $69.5 million for K-12 capital construction projects
• I strongly urge you to fully fund the capital budget request.
• The capital budget committee is adjourned.

Bills: HB2295

Keywords: Washington capital budget, supplemental capital budget, capital appropriations, state building construction account, taxable building construction account, climate commitment account, natural climate solutions, housing trust fund, affordable housing, supportive housing, homelessness, manufactured home communities, mobile home parks, school construction, school modernization, school seismic safety, healthy schools, school electrification, SCAP, behavioral health facilities

Transcript Highlights:

• Welcome to the first Capital Budget Committee hearing. Really appreciate you all being here.
• Thank you for the invitation to present Governor Ferguson's first proposed capital budget.
• In building his first capital budget, the governor established several priorities.
• To start in housing, there was a total capital investment of $237 million.
• I am testifying pro for the capital budget.

Bills: HB2295

Keywords: Washington capital budget, supplemental capital budget, capital appropriations, state building construction account, taxable building construction account, climate commitment account, natural climate solutions, housing trust fund, affordable housing, supportive housing, homelessness, manufactured home communities, mobile home parks, school construction, school modernization, school seismic safety, healthy schools, school electrification, SCAP, behavioral health facilities

Summary: The House Capital Budget Committee opened its first hearing of the session, reviewed committee procedures and deadlines, and then heard a presentation from OFM Senior Budget Advisor Jen Masterson on Governor Ferguson’s proposed supplemental capital budget. Masterson said the proposal uses about $396 million in new appropriations, leaving $5.4 million in bond capacity, and emphasized housing, urgent state facility needs, targeted grant programs, climate-related investments, and K-12 and higher education projects. She highlighted $237 million for housing, including $225 million for the Housing Trust Fund, plus funding for state facilities, juvenile rehabilitation, clean energy, salmon recovery, parks, trust land transfer, school seismic safety, small district modernization, lead pipe remediation, and higher education minor works. Public testimony was largely supportive of the governor’s housing, education, climate, and community project investments, with many speakers asking for additional funding or preservation of specific items. Housing advocates backed the Housing Trust Fund, affordable homeownership, manufactured housing preservation, and transit-oriented developments; tribal, conservation, and climate speakers supported salmon recovery, community forests, the Green Bank, and natural resource projects; and education representatives supported school modernization, seismic safety, lead remediation, community college, and university capital projects. Several local governments and infrastructure groups urged the committee to reject the proposed $75 million sweep from the Public Works Assistance Account, warning it would jeopardize already-awarded loans and raise costs for sewer, flood control, and other local infrastructure projects. Committee members asked follow-up questions about Rainier School, juvenile rehabilitation funding, and the status of Public Works Assistance Account obligations. OFM said Rainier School was on the planning grant list and juvenile rehabilitation funding included flexible capacity funding and facility improvements. The hearing ended without any votes or formal action, after the chair thanked participants and closed the public hearing on HB 2295.

Transcript Highlights:

• The capital budget proposal also includes The capital budget proposal also includes $74 million for the
• Good afternoon, Chair Robinson, Capital Vice Chair Trudeau, Capital Ranking Member Schoesler, members
• Chair Robinson, Capital Vice Chair Trudeau, Capital Ranking Member Chessler, members of the committee
• Chair Robinson, Capital Vice Chair Trudeau, Capital Ranking Member Chessler, members of the committee
• The supplemental capital budget makes clear that the supplemental capital budget makes clear that the

Bills: SB6003

Keywords: capital budget, funding, infrastructure, state projects, budget allocation, 904, all

Summary: The Ways and Means Committee held its first meeting of the 2026 session to hear Governor Ferguson’s proposed supplemental capital budget from OFM. Jen Masterson said the budget uses about $396 million in new appropriations, leaving $5.4 million in bond capacity, and includes funding from the Common School Construction account, Climate Commitment Act accounts, and federal funds. She highlighted housing as the largest share of the proposal, along with urgent state facility repairs, K-12 school seismic and modernization grants, natural resource projects, and higher education preservation and minor works. Committee members asked about the timing of housing projects, and Masterson said the proposed supplemental projects would not be completed within the year. Public testimony was heavily focused on housing. Supporters praised the Housing Trust Fund, especially the $73 million for affordable homeownership, $20 million for manufactured housing preservation, and related investments in land banking, workforce housing, right-to-counsel, and community projects such as Thrive Center Tacoma, Alliance Place, and the African diaspora cultural anchor village. Several speakers urged the legislature to increase housing funding beyond the governor’s proposal, while others emphasized the need to preserve manufactured home communities and support rural and flood-impacted households. One testifier criticized overall state tax levels, but the chair noted the capital budget is bond-funded rather than a direct tax increase. Testimony on K-12 and higher education generally supported the budget’s school modernization, seismic safety, lead remediation, and college preservation funding, though some districts and campuses asked for additional project funding. Rural districts described the small schools modernization program as essential because local bonding capacity is limited. In higher education, UW and WSU speakers said the budget did not fund certain decarbonization and renovation projects they wanted, while community and technical colleges, Western Washington University, Central Washington University, and Eastern Washington University supported the preservation and minor works investments. Natural resources testimony backed salmon recovery and community forest funding, with requests to expand those programs. Local government and utility groups opposed the proposed $75 million transfer from the Public Works Assistance Account to the operating budget, warning it would weaken infrastructure lending and could jeopardize projects already underway. No votes or formal actions were taken; the meeting ended after public testimony.

Transcript Highlights:

• Members, House Bill 2 provides for the comprehensive capital outlay budget.
• And what we're doing today is State General Fund Direct, so you are appropriating money to capital projects
• You're appropriating money to capital projects in recurring funds.

Bills: HB2

Keywords: capital outlay, budget, infrastructure, appropriation, general obligation bonds, 965, house, all

Transcript Highlights:

• Then they go through the statewide capital outlay process through the LFC in the fall.
• The Higher Education Department and the Capital Outlay Committee through the Higher Education Department
• So with bonding like this, will it be able to hit the ground a lot quicker than sometimes our capital
• This, will it be able to hit the ground a lot quicker than sometimes our capital outlay was able to get
• So with this, the bonds, that's different than capital outlay.

Bills: HB248, HB309, HB332, SB48

Keywords: general obligation bonds, GO bonds, capital projects, bond election, property tax levy, state debt, state finance, capital outlay, senior centers, senior citizen facilities, aging services, long-term services, libraries, library acquisitions, broadband for libraries, higher education, university capital projects, community colleges, tribal schools, special schools

Transcript Highlights:

• underlying science, Hypersonics, advanced energy, the underlying science for these programs is complex, capital

Bills: HB248, HB309, HB332, SB48

Keywords: general obligation bonds, GO bonds, capital projects, bond election, property tax levy, state debt, state finance, capital outlay, senior centers, senior citizen facilities, aging services, long-term services, libraries, library acquisitions, broadband for libraries, higher education, university capital projects, community colleges, tribal schools, special schools

Keywords: Capital City Revitalization - Room 113, Dec. 11, 2025; 9:30 AM, 925, all