Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - December 6, 2001
Contact: Governor's Communications Office, 360-902-4136
“Not only do we need these investments for the long-term economic health of our state, but also to help our working people weather the current economic slowdown and the layoffs it has brought,” Locke said. “This refinancing plan will support 4,200 new jobs and in a recession, every job counts.”
Flanked by legislative leaders, the governor said at a news conference that he is confident the Legislature will approve the refinancing package as quickly as it can after convening its 2002 session on Jan. 14.
“The sooner the Legislature acts, the sooner these projects will create new jobs,” the governor said.
One week after the terrorist attacks, the governor’s budget office “paused” funding for capital projects because of uncertainty about declining state revenue. The amount of general obligation bonds the state can finance for construction projects is limited by the amount of revenue the state expects to collect.
The November 2001 revenue forecast did, in fact, reduce state revenue for the 2001-03 biennium by $813 million. And that reduced the bonding capacity of the state by $175 million.
The refinancing proposal saves a total of 2,800 new jobs that would have been lost and also creates 1,400 new jobs in the coming year.
“This is good news, good economic news, for every area of our state,” said Sen. Lisa Brown, D-Spokane, chair of the Senate Ways and Means Committee. “Not only are these construction projects badly needed by the people they serve, but the jobs they create are an extra bonus for our communities.”
The governor proposes to increase the state’s bonding capacity through an innovative refinancing approach that relies on a special provision of Initiative 728. Passed in November 2000, the initiative provides a reliable source of funds – $25 million in state lottery revenue – that can be used for debt service rather than being spent as cash in the Education Construction Fund.
The governor’s plan will:
“We are delighted,” said Lisa Macfarlane of the League of Education Voters. “Voters of this state, when they approved I-728 last year, not only created a student achievement fund, they also provided a source of funding for the state’s education construction fund. By directing the lottery proceeds to this fund, I-728 enables critically needed community college and higher education construction projects to move forward in this tough economic year.”
“At a time when unemployment rates in Washington state have risen drastically, I cannot help but feel that freeing up the capital budget will be a great stimulant to an otherwise waning economy,” said Rep. Ed Murray, D-Seattle, chair of the House Capital Budget Committee.
“I am encouraged by the governor’s decision to restart the state’s capital improvement program,” said Sen. Joseph Zarelli, R-Vancouver, ranking minority member of the Senate Capital Budget Committee. “This action not only ensures a variety of projects will continue, more importantly it enhances the state economy by preserving and creating thousands of jobs across Washington.”
In addition, Locke said approval of a long-term funding plan for badly-needed transportation improvements would offer another major boost to the economy. The governor plans to unveil his transportation proposal later this month.
Related Links:
- Building for the Future, Creating New Jobs Now
- Washington State Senate Ways and Means Committee
- Sen. Joseph Zarelli
- Rep. Edward Murray
- League of Education Voters
- Washington State Legislature
- Sen. Lisa Brown
FOR IMMEDIATE RELEASE - December 6, 2001
Contact: Governor's Communications Office, 360-902-4136
Governor unveils public works plan to put people to work
OLYMPIA — Gov. Gary Locke restarted the state’s $880 million capital improvement program today, urging the Legislature to take swift action on a refinancing plan that will cover a $200 million shortfall in the construction budget and add another $100 million in projects.“Not only do we need these investments for the long-term economic health of our state, but also to help our working people weather the current economic slowdown and the layoffs it has brought,” Locke said. “This refinancing plan will support 4,200 new jobs and in a recession, every job counts.”
Flanked by legislative leaders, the governor said at a news conference that he is confident the Legislature will approve the refinancing package as quickly as it can after convening its 2002 session on Jan. 14.
“The sooner the Legislature acts, the sooner these projects will create new jobs,” the governor said.
One week after the terrorist attacks, the governor’s budget office “paused” funding for capital projects because of uncertainty about declining state revenue. The amount of general obligation bonds the state can finance for construction projects is limited by the amount of revenue the state expects to collect.
The November 2001 revenue forecast did, in fact, reduce state revenue for the 2001-03 biennium by $813 million. And that reduced the bonding capacity of the state by $175 million.
The refinancing proposal saves a total of 2,800 new jobs that would have been lost and also creates 1,400 new jobs in the coming year.
“This is good news, good economic news, for every area of our state,” said Sen. Lisa Brown, D-Spokane, chair of the Senate Ways and Means Committee. “Not only are these construction projects badly needed by the people they serve, but the jobs they create are an extra bonus for our communities.”
The governor proposes to increase the state’s bonding capacity through an innovative refinancing approach that relies on a special provision of Initiative 728. Passed in November 2000, the initiative provides a reliable source of funds – $25 million in state lottery revenue – that can be used for debt service rather than being spent as cash in the Education Construction Fund.
The governor’s plan will:
- Permit $200 million in capital projects to go forward.
- Create another $100 million in state bonding capacity to finance additional capital projects.
- Provide $25 million in bond proceeds to replace the education construction funds proposed to be used for debt service in 2002.
“We are delighted,” said Lisa Macfarlane of the League of Education Voters. “Voters of this state, when they approved I-728 last year, not only created a student achievement fund, they also provided a source of funding for the state’s education construction fund. By directing the lottery proceeds to this fund, I-728 enables critically needed community college and higher education construction projects to move forward in this tough economic year.”
“At a time when unemployment rates in Washington state have risen drastically, I cannot help but feel that freeing up the capital budget will be a great stimulant to an otherwise waning economy,” said Rep. Ed Murray, D-Seattle, chair of the House Capital Budget Committee.
“I am encouraged by the governor’s decision to restart the state’s capital improvement program,” said Sen. Joseph Zarelli, R-Vancouver, ranking minority member of the Senate Capital Budget Committee. “This action not only ensures a variety of projects will continue, more importantly it enhances the state economy by preserving and creating thousands of jobs across Washington.”
In addition, Locke said approval of a long-term funding plan for badly-needed transportation improvements would offer another major boost to the economy. The governor plans to unveil his transportation proposal later this month.
Related Links:
- Building for the Future, Creating New Jobs Now
- Washington State Senate Ways and Means Committee
- Sen. Joseph Zarelli
- Rep. Edward Murray
- League of Education Voters
- Washington State Legislature
- Sen. Lisa Brown
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