Capital budget deal announced

The agreement includes a smaller capital budget and some limits to the debt capacity.

The capital budget will include a $1.1 billion bond budget ... HB 2020. Senator Derek Kilmer, D-Gig Harbor, said that every school district that has passed a bond measure will get the school construction assistance they have been counting on, plus some funding for skills centers is included.

On the constitutional amendment, the compromise is to put something into statute this year on a working debt limit but not to seek an amendment at this time.

Reporting on the agreement, Senator Linda Evans Parlette, R-Wenatchee, indicated that they have agreed on reducing the debt limit over time and will create a blue ribbbon commission to assist with the thinking on what the right level of debt should be. The commission will include legislators, the state treasurer, OFM, and others with expertise on bonds and financing.

SB 5181 will create the commission, and will put in place a working debt limit smaller than the 9% currently in the constitution. The working debt limit is currently 8.75, and bonding capacity has been based on a three-year average; the language they are working on is to reduce this over time, with a goal of reducing the debt service in the operating budget to about 5.5 percent.

A constitutional amendment has been put aside for now, although it might be something the blue ribbon commission may recommend.

The cash projects in the capital budget will show up in a striking amendment for SHB 1497. This is a new approach, according to ranking committee member Judy Warnick, R-Moses Lake, where the bond bill (HB 2020) and the cash bill (HB 1497) will be more transparent on what the state is buying.

No bills or summary details yet; probably tomorrow. Negotiators worked until 5 a.m., and gave the Governor and the governor's office credit for helping them reach agreement.

The press conference will be available on TVW later today.