State Board advances roughly $600 million capital budget request and prioritizes emergency dam project

The State Board reviewed and approved its proposed capital budget request for the 2027–29 biennium, a prioritized list staff said targets about $600 million and balances major and minor projects across the community and technical college system.

Daryl White (presentation staff) said the request aligns with statutory and Office of Financial Management (OFM) instructions requiring a single prioritized capital list and noted that predesigns (required for projects over $15 million) and updated facility condition surveys informed budget figures. Staff described an approach that escalates project budgets to account for local requirements and taxes, and emphasized a 10% increase to minor-works funding overall with targeted adjustments across categories. The proposal also increases facility condition survey funding from about $64 million to $97 million to improve data used for prioritization.

The board discussed several details: a member asked whether the additional 15% funding request for capital predesigns represented a separate charge; staff said colleges perform preliminary work and concept planning to align proposals with predesign requirements and that formal predesigns submitted to OFM can still cost between roughly $25,000 and $350,000 depending on project scope. Staff also explained the URF (utility replacement fund) distribution formula (based on total square footage, square footage older than 25 years, and college FTE percentage) and said decarbonization projects are being tracked on a parallel list pending additional direction from OFM or Commerce.

Board members asked about an emergency project at Grays Harbor College related to a structurally deficient earthen dam. Staff confirmed the dam is located on college property, listed on Ecology’s watch list, and was elevated to the state board’s pipeline as an emergency priority.

With clarifications addressed, the board moved to approve the capital budget resolution (motion moved by Matt, seconded by Jeff). The motion passed by voice vote; the transcript records no roll-call tally.

Next steps: staff said the detailed memo and the resolution text are in board materials (tab 6) and that the board’s request will be submitted following internal approval and in accordance with OFM and legislative processes.