2023 Direct Appropriation Status Report

Summary

The 2023 Direct Appropriation Status Report on Local and Community Projects, a report to the Legislature from the Washington State Department of Commerce dated January 2, 2024. It is issued under the 2023-25 State Capital Budget, Chapter 474, Laws of 2023 (ESSB 5200, Sections 6005, 6073, and 6074), which required Commerce to list projects not under contract by December 31, 2023. The report states that of nearly 240 projects across the three direct appropriations, only one met all report criteria without a contract: the Seabrook Trail, with a grant award of $423,890. It restates the conditions attached to the appropriations, including a minimum of ten years of site control and payment on a reimbursement basis only. Table 1 lists the one lapsed project.

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Full text

Pursuant to the 2023-25 State Capital Budget, Chapter 474, Laws of
2023 (ESSB 5200, Sections 6005, 6073, and 6074)




                                              January 2, 2024
       LOCAL AND COMMUNITY
       PROJECTS                               Report to the Legislature

                                              Director Mike Fong
v3.3
 Acknowledgments
 Washington State Department of Commerce
 Mark Barkley, Assistant Director, Local Government
 Division

 Buck Lucas, Policy and Communications Manager,
 Local Government Division

 Mike Kendall, Capital Programs Manager,
 Community Capital Facilities

 Addeline Craig, Managing Director, Community
 Capital Facilities

 (360) 688-0041

 addeline.craig@commerce.wa.gov

 Community Capital Facilities

 1011 Plum St. SE
 P.O. Box 42525
 Olympia, WA 98504-2525

 www.commerce.wa.gov

 For people with disabilities, this report is available on
 request in other formats. To submit a request, please
 call 360-725-4000 (TTY 360-586-0772)




      2023 DIRECT APPROPRIATION STATUS REPORT                2
2.0
Table of Contents
Executive summary...................................................................................................................................... 4

Background ................................................................................................................................................. 4

Identified projects........................................................................................................................................ 5




  2023 DIRECT APPROPRIATION STATUS REPORT                                                                                                                 3
Executive summary
Authorizing legislation
In the 2023-25 legislative session, the Legislature directed the Department of Commerce (Commerce) to
identify and report on projects from three specific direct appropriations that are not yet under contract by
December 31, 2023. The specific proviso language that guides this report is as follows:

     The re-appropriation for any project for which the department has not executed a contract by December 31,
     2023, shall lapse. The department shall provide a list of lapsed projects to the legislative fiscal committees
     no later than January 15, 2024. (Table 1).

The three sections of the 2023-25 Capital Budget that require this status update are:

    Section 6005: 2017 Local and Community Projects (30000846)1
    Section 6073: Projects that Strengthen Communities and Quality of Life (92000230)2
    Section 6074: 2016 Local and Community Projects (92000369)3

Conclusions
From the nearly 240 projects across these three direct appropriations, only one met all report criteria and has
not entered into a contract with Commerce. The Seabrook Trail (2013 Projects that Strengthen Communities
and Quality of Life) received a grant award for $423,890.

Direct appropriations come in all states of project readiness, and like all projects, navigate specific project and
general economic realities in real time, such as changes in scope and availability of labor and building
materials. Commerce continues to work with all recipients of direct appropriation grants to strengthen
communities through state capital investments.


Background
Every legislative session, the Washington State Legislature considers community capital requests to include in
the state's capital budget. The Washington State Office of Financial Management defines capital projects as "a
broad range of construction, renovation, rehabilitation and acquisition."

The appropriations under the authority of this report are subject to the following conditions and limitations:

       (1) Except as directed otherwise prior to the effective date of this section, the department may not
       expend the appropriation in this section unless and until the non-state share of project costs have been
       either expended, or firmly committed, or both, in an amount sufficient to complete the project or a
       distinct phase of the project that is useable to the public for the purpose intended by the legislature. This
       requirement does not apply to projects where a share of the appropriation is released for design costs
       only.




1 Chapter 35, Laws of 2016 (HB 2380, Sec. 1008)
2 Chapter 19, Laws of 2013 (SB 5035, Sec. 1078)
3 Chapter 3, Laws of 2015 (HB 1115, Sec. 1040)



    2023 DIRECT APPROPRIATION STATUS REPORT                                                                      4
     (2) Prior to receiving funds, project recipients must demonstrate that the project site is under control for
     a minimum of ten years, either through ownership or a long-term lease. This requirement does not apply
     to appropriations for pre-construction activities or appropriations whose sole purpose is to purchase real
     property that does not include a construction or renovation component.

     (3) Projects funded in this section may be required to comply with Washington's high performance
     building standards as required under chapter 39.35D RCW.

     (4) Project funds are available on a reimbursement basis only, and shall not be advanced under any
     circumstances.

     (5) Projects funded in this section must be held by the recipient for a minimum of ten years and used for
     the same purpose or purposes intended by the legislature as required in RCW 43.63A.125(6).

     (6) Projects funded in this section, including those that are owned and operated by nonprofit
     organizations, are generally required to pay state prevailing wages.

Commerce receives lists of Local and Community Projects and other direct appropriations through the state
capital budget. These projects are reimbursement-style grants provided to local governments and nonprofit
organizations to help communities build and improve a variety of public facilities.


Identified projects
Across all three capital provisos under examination, only one project met all criteria. This project is from
Chapter 19, Laws of 2013 (SB 5035, Sec. 1078) and Projects that Strengthen Communities and Quality of Life
(92000230) - for the Seabrook Trail (see Table 1).

Table 1: Lapsed direct appropriation projects

 Project title                    Grant amount                     Appropriation

                                                                   2013 Projects that Strengthen
 Seabrook Trail                   $423,890                         Communities and Quality of Life
                                                                   (92000230)




 2023 DIRECT APPROPRIATION STATUS REPORT                                                                      5


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