Major local investments proposed in state capital construction priorities
- Nic Scott
- Apr 1
- 3 min read
Rep. Mike Steele, R-Chelan, ranking Republican on the House Capital Budget Committee, applauded the release of the House-proposed 2025-27 capital budget—House Bill 1216—a $7.63 billion bipartisan plan that makes significant investments in infrastructure and communities across Washington state.
"This budget is the product of months of careful collaboration and a strong focus on people," said Steele. "At a time when other state budgets are facing pressure and shortfalls, the capital budget stands out as a bright spot. It supports our shared bipartisan priorities—housing, education, behavioral health, and essential infrastructure—and does not rely heavily on general fund dollars. I'm proud of the teamwork that went into this plan and confident in the positive impact it will have in communities across the state."
Unlike the operating budget, the capital budget is primarily funded through bond sales—not general fund state (GFS) revenue—and focuses on long-term physical investments such as public schools, water systems, and community facilities. The operating budget, by contrast, covers the state's day-to-day services, including public safety, healthcare, and education staffing, and is largely dependent on GFS revenue.
The capital budget appropriates funding for tangible, long-lasting assets-such as schools, behavioral health facilities, parks, housing, and critical infrastructure—using a combination of funding sources, including general obligation bonds, dedicated cash accounts, federal dollars, and alternative financing contracts.
The House proposal includes funds for schools:
Methow Valley, $6 million
Bridgeport Elementary modernization, $6 million
Waterville, $5.7 million
Orondo, $5.5 million
The House and Senate proposals include several local projects, among others:
Lake Chelan Health Emergency Medical Services Building, $1.1 million
Lake Chelan Community Center Gymnasium Project, $475 thousand
Chelan-Douglas Community Action Council, $2 million
North Central Washington YWCA, $5 million
Methow Valley Water Supply Project, $2 million
Courthouse Historic Preservation, Chelan County $312 thousand, Douglas County, $610 thousand, Okanogan County, $800 thousand
Omak Library Renovation, $723 thousand
$4.64 billion in newly authorized general obligation bonds and strategically reserves $389 million in bond capacity for the 2026 supplemental capital budget.
Key statewide highlights of the 2025-27 proposal:
Housing and Homelessness - $723.6 million, including:
$100 million - Permanent supportive housing
$80 million - First-time, low-income homebuyer assistance
$100 million - Connecting Housing to Infrastructure Program (CHIP)
$10 million - Youth shelters and housing
K-12 Education - $1.1 billion, including:
$563 million - School Construction Assistance Program
$249.5 million - Small District and Tribal Compact School Modernization
$151.4 million - School Seismic Safety Grant Program
Higher Education - $1.4 billion, including:
$458 million - Community and Technical Colleges
Behavioral Health - $471.7 million, including:
$282 million - Completion of Western State Hospital
$132.7 million - Behavioral Health Capacity grants
$22.1 million - Maple Lane civil bed expansion
Department of Commerce Community Grant Programs - $1 billion, including:
$100 million - Local and Community Projects (statewide)
$91.7 million - Early learning facilities for community providers and school districts
$49 million - Building Communities Fund
$10 million - Library Capital Improvement Program
$7.68 million - Youth Recreational Facilities grants
$5.48 million - Dental care capacity projects
Natural Resources - $2.19 billion, including:
$120 million - Washington Wildlife and Recreation Program
$59.6 million - Floodplains by Design
$70 million - Chehalis Basin Strategy
$49 million - Yakima River Basin Water Supply Program
$36.4 million - Columbia River Water Supply Development
$40 million - Streamflow restoration grants
Fish Barrier Removal:
$105 million - Salmon Recovery Funding Board
$27.1 million - Brian Abbott Fish Barrier Removal Board
Riparian Restoration:
$25 million - Salmon Recovery Funding Board
$20 million - State Conservation Commission
Proposed energy investments include:
$50 million - Clean Energy Fund (technology and deployment)
$36 million - Weatherization Plus Health (low-income energy efficiency upgrades)
Climate Commitment Act:
$50 million - Tribal climate adaptation grants
$30 million - High-efficiency appliance rebates for low- and moderate-income households
$28 million - Public school classroom indoor air quality projects
HB 1216 awaits a vote in the House.
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