A murky future for proposed Public Works Revolving Account

Washington cities’ hopes for constitutional protection of a vital source of local infrastructure funding have been dashed, for now.

Senate Joint Resolution 8201 would have amended the State Constitution to establish the Public Works Revolving Account in the state Treasury, to be used strictly for the purpose of providing loans and grants to local governments for infrastructure projects. The existing Public Works Assistance Account (PWAA) would have remained intact; however, all moneys received from local governments in the repayment of loans made under both accounts would be paid into the revolving account. This would have ensured that loan repayment dollars from local governments were used solely for future local infrastructure loans and could not be directed to other funds by the Legislature.

In a strange twist of events, SB 5303, the implementation bill accompanying the Senate Joint Resolution moved ahead on its own. The bill would amend state law to recognize the creation of the revolving account and confer governing authority over the new account to the Public Works Board.

AWC is committed to working with the bill sponsor, the Public Works Board, and other stakeholders to refine SRJ 8201 for consideration next session.

SB 5303 passed off the Senate floor with 46 votes in its favor, three against, and now heads to the House Appropriations Committee.