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Published on Friday, June 7, 2013

Revised House budget proposal sweeps all available revenues from Public Works Trust Fund

On Thursday the House adopted a revised operating budget that sweeps all available revenues ($394 million) from the Public Works Assistance Account (commonly called the Public Works Trust Fund) into the General Fund for the next biennium. During the regular session the House had adopted a budget that would have funded $350 million in construction loans including $216 million for 116 projects in 66 cities. This revised proposal would eliminate funding for all of those loans (as well as for a 2015 loan cycle). For those cities with projects on the current list it would be helpful to contact your legislators and remind them why those loans are important to your city. When you do so keep in mind that the House budget does not propose to cut other revenues that the state shares with cities (such as liquor revenues).

It should also be noted that the House has not yet adopted a Capital Budget. It is still possible that they could find some relatively small amount of funding for local infrastructure projects. The last time the legislature swept all available revenues from the PWTF in 2008 they did appropriate $50 million in grants for local infrastructure projects. At this time we do not know if or when a Capital Budget proposal will come forward.

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