Public Works Board warns budget transfers could leave assistance account nearly empty
April 03, 2026 | Board Council Commission Agencies , Executive, Washington
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The Public Works Board heard an overview on April 3 showing the 2026 supplemental budget and related transfers will tighten the Public Works Assistance account and require careful cash‑flow management.
Executive Director Maria Duad told members the capital appropriation authority for the program increased to about $379,500,000 and that an additional $10,000,000 from the Natural Climate Solutions account was added, creating roughly $389,500,000 in bond authority for grants and loans. Duad said the operating budget also rose slightly to about $9,200,000.
“But between now and June 2027,” Duad said, “a planned transfer of $375,000,000 to the state general fund, combined with earlier transfers noted in the package, means the account’s cash balance will be very low — hovering near $6,000,000.”
Board members pressed staff on the implications. Member Gary Rowe warned that transfers of that size could “take the public works assistance account down to essentially no money left in the account at the end of the biennium,” and said projects could be cancelled or funds clawed back if future transfers occur.
Finance and Data Committee members described options for the FY27 award cycle that attempt to balance getting money into communities with preserving a near‑term cash cushion. Committee leaders favored front‑loading awards (opening the construction cycle at the larger amount the account can safely support) but recommended delaying any binding reductions to FY27 award amounts until the board can reassess cash flow closer to the award date.
The board did not change statutory authority; staff said the next steps are to monitor revenues and spending closely, report updated cash projections at the October award review, and consider policy options at the May retreat and future committee meetings.
Why it matters: The board’s funding decisions affect local public‑works projects—water, sewer, road and broadband infrastructure—and large transfers from the program to the general fund may force the board to limit awards or deobligate projects previously earmarked for funding.
The board will revisit cash projections and cycle sizing at future meetings and used the April discussion to set expectations for contingency planning and monitoring.
Executive Director Maria Duad told members the capital appropriation authority for the program increased to about $379,500,000 and that an additional $10,000,000 from the Natural Climate Solutions account was added, creating roughly $389,500,000 in bond authority for grants and loans. Duad said the operating budget also rose slightly to about $9,200,000.
“But between now and June 2027,” Duad said, “a planned transfer of $375,000,000 to the state general fund, combined with earlier transfers noted in the package, means the account’s cash balance will be very low — hovering near $6,000,000.”
Board members pressed staff on the implications. Member Gary Rowe warned that transfers of that size could “take the public works assistance account down to essentially no money left in the account at the end of the biennium,” and said projects could be cancelled or funds clawed back if future transfers occur.
Finance and Data Committee members described options for the FY27 award cycle that attempt to balance getting money into communities with preserving a near‑term cash cushion. Committee leaders favored front‑loading awards (opening the construction cycle at the larger amount the account can safely support) but recommended delaying any binding reductions to FY27 award amounts until the board can reassess cash flow closer to the award date.
The board did not change statutory authority; staff said the next steps are to monitor revenues and spending closely, report updated cash projections at the October award review, and consider policy options at the May retreat and future committee meetings.
Why it matters: The board’s funding decisions affect local public‑works projects—water, sewer, road and broadband infrastructure—and large transfers from the program to the general fund may force the board to limit awards or deobligate projects previously earmarked for funding.
The board will revisit cash projections and cycle sizing at future meetings and used the April discussion to set expectations for contingency planning and monitoring.
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