December 18, 1996

Honorable Members of the Washington State Legislature

Ladies and Gentlemen:

The capital budget and financial plan presented in the Washington State 1997-2007 Capital Plan reflects a responsible balance between the need to make capital investments and the financial capacity available under the statutory debt and general fund expenditure limits.

The capital budget proposed for the 1997-99 Biennium and the Ten-Year Plan address the highest priority needs of Washington State. Many of the largest projects in this plan are driven by current and future demands resulting from increases in population and the need to maintain current facilities. The budget includes major investments to build and modernize public schools, expand higher education capacity and technology, fund the purchase of open space and recreational lands, provide grants for low- and moderate-income housing, and meet the capacity needs of rising adult corrections and juvenile justice populations.

The proposed budget successfully balances the needs of a growing state population with prudent financial planning. Like the operating budget, the capital budget for the 1997-99 Biennium must reconcile short-term and long-term demand for services within financial constraints. In order to meet immediate challenges without compromising the state's long-term investment strategy, this proposal incorporates funding provided through the 1997 supplemental budget request to begin four new capital projects.

I hereby submit my proposed capital budget for the 1997-99 Biennium and the accompanying 1997-2007 Capital Plan for your review and consideration.