AWC pursues top priority – infrastructure funding

Infrastructure funding is one of our Association’s top priorities.

The good news is that the Federal Stimulus package has put a strong emphasis on infrastructure spending. In addition, the Governor’s budget, and legislative proposals to increase the debt limit will ensure a modest capital budget. We have also seen several bills related to economic development.

At the city level, most of our priority legislation is in the mix. We have introduced street utility authority legislation, modifications to Transportation Benefit Districts, and modifications to the local Real Estate Excise Tax (REET). The combination of Initiative 960, and this economic and budget climate has limited any new state infrastructure funding initiatives. Please see the Infrastructure Section of this Bulletin for more details.

Federal stimulus update

Congress has targeted Friday, February 13 to complete the federal stimulus, or American Recovery and Reinvestment Plan (ARRP). It will be a daunting task to make that deadline; our hope is to have both the House and Senate bills in conference committee by that time.

It is still looking very evident that the Senate and House intend to use existing federal programs with the accompanying rules, permit requirements, and accountability measures. As a consequence, projects that we have forwarded to the Governor’s office that do not fall within the assigned federal infrastructure categories are very unlikely to be eligible for funding.

The following are the major infrastructure categories and what is likely to be allocated to Washington state:

• Transportation (between $500M and $600M statewide)
• Clean Water ($80M to $100M, including flexibility to allow some grants and zero percent loans)
• Drinking Water ($42M, similar flexibility as Clean Water)

In the Clean Water/Drinking Water categories, the Governor’s staff will cross-check (again) to assure that the information you submitted to AWC or their office directly, is run through the appropriate state agencies to determine eligibility, readiness to proceed, etc.

Transportation will also go through the traditional Federal funding allocation process. The Senate includes an additional program for Discretionary Grants for A National Surface Transportation System.

If the Senate’s additional program prevails, this will have a shuffling effect on how much money will go through the various funding sub-categories of transportation.

There is a sub-category of transportation funding, traditionally known as Surface Transportation Program (STP flexible) funding that is still undefined at the state level.

Under the House proposal, this is approximately $80M. The state has the authority to retain the funds, yet local governments have traditionally received a significant share of these funds. AWC staff will continue to work with the Governor’s office, and the Senate and House Transportation Committee chairs to assure the STP flexible funds are directed to local governments.

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