Senators Mullet and Schoesler (the Vice Chair and Ranking Member of the Ways & Means Committee, capital budget) have released their capital budget proposal for 2023–25. For the biennium, it would appropriate $7.890 billion from all funds. Adjusted for inflation, that is a decrease of 4.9% from the current capital budget. The Senate chair’s proposal would appropriate 11.4% less than Gov. Inslee had proposed. (For more about Gov. Inslee’s proposals, see here and here.)

The associated bond bill would authorize $4.167 billion in general obligation bonds. Additionally, the proposal would appropriate $400 million in 2023–25 “to reflect previously unused bond issuance authority from 2019–21 and 2021–23.” According to the bond bill,

the state has not fully expended all appropriations for capital projects that could have been supported by the issuance of state general obligation bonds, and that over time this under utilization of appropriation authority and the related bond issuance authority has resulted in a cumulative difference between the amount of general obligation bonds authorized and the amount of bonds actually issued.

The Senate proposal does not include the governor’s $4 billion referendum bond for housing and homelessness programs. Instead, the Senate proposal would use a combination of regular debt limit bonds and other funds to fund a much higher than normal level of appropriations for housing programs. In the Senate proposal, capital appropriations for housing programs would be $625.2 million, which would be 7.9% of total capital appropriations. Looking back, housing programs have usually made up less than 4% of capital appropriations. (See the chart below.)

The glaring exception is 2021–23. However, in that biennium, the state used $129.7 million in federal COVID relief funding for capital housing programs. Additionally, the state made an unusual transfer from the operating budget to the capital budget. Of those one-time funds, $427.8 million were used for capital housing programs.

A few other notes:

• Both the governor’s and the Senate chair’s proposals would appropriate $400 million for the public works assistance account.
• The governor would appropriate $895.0 million for the new forensic hospital, but the Senate chair would only appropriate $650.0 million.