The Senate’s proposed supplemental capital budget (SB 5651) was released on February 16
and makes significant investments in housing and broadband leveraging federal American Rescue Plan Act (ARPA) fiscal relief and infrastructure funding. The supplemental budget uses $94.8 million in state bond capacity, $561.6 million in ARPA funds,
$290.3 million from initial federal Infrastructure Investments & Jobs Act (IIJA) grants, and shifts state funds for capital programs to leverage federal funding.
SB 5651 provides increased funding for several city priorities:
- Affordable housing: $472 million additional investment in affordable housing, including:
- $290 million for the rapid conversion of property into emergency shelters, permanent supportive housing, transitional housing, and youth housing, including transitioning people in unsanctioned encampments and public rights-of-way to transitional
and permanent housing.
- $71 million for Housing Trust Fund construction and preservation of affordable housing.
- $86 million to expand capacity for short-term crisis stabilization housing facilities.
- Broadband: $120 million, including:
- $70 million for the state broadband office to provide equity, access, and deployment grants;
- $25 million to CERB broadband; and
- $25 million to Public Works Board broadband.
- Behavioral health: $16 million for expanded behavioral health services in communities.
- Water: $66.5 million in additional funding for the drinking water assistance account loan and $236 million additional funding for the water pollution control loan programs.
- Weatherization Plus Health program: $80 million, $70 million of which is to come from federal IIJA dollars.
Full funding for the Public Works Assistance Account (PWAA) was not restored. While key programs like the Drinking Water Assistance account and the Water Pollution Revolving Account received critical new funding ($14.5 million and $18 million, respectively),
the PWAA remains underfunded with the continued diversion of its traditional revenue sources. It is a crucial funding source in our efforts to provide the necessary infrastructure for our communities. Cities appreciate the investment made in the budget
last session, but applications for PWAA funding still far outpace the monies available.
The proposed budget was heard in the Senate Ways & Means Committee on February 17 and AWC testified in support of the additional investments in local funding for housing and broadband. For more information, see the budget matrix summarizing impacts on cities.