HOUSE BILL REPORT
HB 1473
As Reported by House Committee On:
Appropriations
Title: An act relating to making expenditures from the budget stabilization account for declared catastrophic events.
Brief Description: Making expenditures from the budget stabilization account for declared catastrophic events.
Sponsors: Representatives Gregerson, Callan and Ormsby; by request of Office of Financial Management.
Brief History:
Committee Activity:
Appropriations: 2/6/25, 2/24/25 [DPS].
Brief Summary of Substitute Bill
  • Appropriates $77,687,000 from the Budget Stabilization Account for fire suppression costs incurred by the Department of Natural Resources during the 2024 fire season.
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.Signed by 31 members:Representatives Ormsby, Chair; Gregerson, Vice Chair; Macri, Vice Chair; Couture, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Penner, Assistant Ranking Minority Member; Schmick, Assistant Ranking Minority Member; Berg, Bergquist, Burnett, Caldier, Callan, Corry, Cortes, Doglio, Dye, Fitzgibbon, Keaton, Leavitt, Lekanoff, Manjarrez, Marshall, Peterson, Pollet, Rude, Ryu, Springer, Stonier, Street, Thai and Tharinger.
Staff: Dan Jones (786-7118).
Background:

The Budget Stabilization Account (BSA) is an appropriated account originally created in the state Constitution in 2007 that may be thought of as an account for operating budget reserves.  Funds must be transferred into the BSA each year equal to 1 percent of General State Revenues (GSR).  The term GSR is defined in the state Constitution and is generally synonymous with the State General Fund.  Under certain conditions, additional transfers to the BSA are required.

 

Funds may be appropriated from the BSA with a constitutional majority under certain periods of forecasted low employment growth, or for declared disasters and limited to that specific purpose.  Funds may be appropriated from the BSA with at least a three-fifths vote by the Legislature in all other instances.  On August 2, 2024, Governor Inslee declared a state of emergency in all Washington counties due to threats to life and property from existing and threatened wildfires.
Summary of Substitute Bill:

The sum of $77,687,000 is appropriated from the BSA for fiscal year 2025 and is provided solely for fire suppression costs incurred by the Department of Natural Resources in the 2024 fire season.
Substitute Bill Compared to Original Bill:

The substitute bill increases the amount of the BSA appropriation from $72,442,000 to $77,687,000.
Appropriation: The sum of $77,687,000 is appropriated from the Budget Stabilization Account.
Fiscal Note: Not requested.
Effective Date of Substitute Bill: The bill contains an emergency clause and takes effect immediately.
Staff Summary of Public Testimony:

(In support) There were a number of expensive fires last fire season, and this bill helps pay for them.  Cities like Sammamish and Issaquah were deeply affected by the bomb cyclone from last November, and the costs are not able to be absorbed by the local governments.  The bill should be amended to include financial assistance for local governments impacted by the bomb cyclone. 

 

(Opposed) None.

 

(Other) The bomb cyclone caused extensive property damage in Mercer Island, and put first responders in dangerous situations.  The bill should be amended to provide support to local governments for the costs of the bomb cyclone.
Persons Testifying:

(In support) Representative Mia Gregerson, prime sponsor; Sheri Sawyer, Office of Financial Management; Mary Lou Pauly, Mayor, City of Issaquah; and Karen Howe, Mayor, City of Sammamish.

(Other) Salim Nice, Mayor, City Mercer Island.
Persons Signed In To Testify But Not Testifying: None.