wa-law.org > bill > 2025-26 > SB 6047 > Original Bill
Subject to the requirements in RCW 39.10.250, 39.10.270, or 39.10.280, public bodies may utilize the design-build procedure, including progressive design-build, for public works projects in which the total project cost is over $2,000,000 and where:
The construction activities are highly specialized and a design-build approach is critical in developing the construction methodology; or
The projects selected provide opportunity for greater innovation or efficiencies between the designer and the builder; or
Significant savings in project delivery time would be realized.
Subject to the process in RCW 39.10.270 or 39.10.280, public bodies may use the design-build procedure, including progressive design-build, for parking garages and preengineered metal buildings, regardless of cost.
The design-build procedure may be used for the construction or erection of portable facilities as defined in WAC 392-343-018, or not more than 10 prefabricated modular buildings per installation site, regardless of cost and is not subject to approval by the committee.
Except for utility projects and approved demonstration projects, the design-build procedure may not be used to procure operations and maintenance services for a period longer than three years. State agency projects that propose to use the design-build-operate-maintain procedure shall submit cost estimates for the construction portion of the project consistent with the office of financial management's capital budget requirements. Operations and maintenance costs must be shown separately and must not be included as part of the capital budget request.
Subject to the process in RCW 39.10.280, a public body may seek committee approval for a design-build demonstration project that includes procurement of operations and maintenance services for a period longer than three years.
Washington State University may perform design-build demonstration projects with a total project cost under $2,000,000 to develop best practices in encouraging participation of small business entities and of minority, women, and veteran-owned businesses, and in managing capital projects under $2,000,000. Washington State University shall provide reports to the board every other year, starting with two years after May 10, 2021. Such reports shall include information on the type of projects performed, the initial and final project cost and schedule of the projects, participation of small business entities and of minority, women, and veteran-owned businesses, and the best practices derived from the projects. The report shall include outreach measures developed in concert with the office of minority and women's business enterprises.
Projects employing alternative works construction procedures under this chapter are subject to the allotment procedures adopted by the office of financial management and in compliance with RCW 43.88.110.
The budget document or documents shall also contain:
a. Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, and those anticipated for the ensuing biennium;
b. The undesignated fund balance or deficit, by fund;
c. Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;
d. Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;
e. Tabulations showing expenditures classified by fund, function, and agency;
f. The expenditures that include nonbudgeted, nonappropriated accounts outside the state treasury;
g. Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.71 RCW, shown by agency and in total; and
h. Tabulations showing each postretirement adjustment by retirement system established after fiscal year 1991, to include, but not be limited to, estimated total payments made to the end of the previous biennial period, estimated payments for the present biennium, and estimated payments for the ensuing biennium.
The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:
Interest, amortization and redemption charges on the state debt;
Payments of all reliefs, judgments, and claims;
Other statutory expenditures;
Expenditures incident to the operation for each agency;
Revenues derived from agency operations;
Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium;
A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;
Common school expenditures on a fiscal-year basis;
A showing and explanation of anticipated amounts of general fund and other funds required to amortize the unfunded actuarial accrued liability of the retirement system specified under chapter 41.45 RCW, and the contributions to meet such amortization, stated in total dollars and as a level percentage of total compensation.
The governor's operating budget document or documents shall reflect the statewide priorities as required by RCW 43.88.090.
The governor's operating budget document or documents shall identify activities that are not addressing the statewide priorities.
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Beginning in the 2021-2023 fiscal biennium, the governor's operating budget document or documents submitted to the legislature must leave, in total, a positive ending fund balance in the general fund and related funds.
Beginning in the 2021-2023 fiscal biennium, the projected maintenance level of the governor's operating budget document or documents submitted to the legislature must not exceed the available fiscal resources for the next ensuing fiscal biennium.
For purposes of this subsection:
"Available fiscal resources" means the beginning general fund and related funds balances and any fiscal resources estimated for the general fund and related funds, adjusted for proposed revenue legislation, and with forecasted revenues adjusted to the greater of (A) the official general fund and related funds revenue forecast for the ensuing biennium, or (B) the official general fund and related funds forecast for the second fiscal year of the current fiscal biennium, increased by 4.5 percent for each fiscal year of the ensuing biennium.
"Projected maintenance level" means estimated appropriations necessary to maintain the continuing costs of program and service levels either funded in the governor's budget document or documents submitted to the legislature or mandated by other state or federal law, adjusted by the estimated cost of proposed executive branch legislation, and the amount of any general fund moneys projected to be transferred to the budget stabilization account pursuant to Article VII, section 12 of the state Constitution. Proposed executive branch legislation does not include proposals by institutions of higher education, other separately elected officials, or other boards, commissions, and offices not under the authority of the governor that are not funded or assumed in the governor's budget document or documents submitted to the legislature.
"Related funds" has the meaning defined in RCW 43.88.055.
(b) of this subsection (5) does not apply:
To any governor-proposed legislation submitted to the legislature that makes net reductions in general fund and related funds appropriations to prevent the governor from making across-the-board reductions in allotments for these particular funds as provided in RCW 43.88.110(7); or
In a fiscal biennium for which the governor proposes appropriations from the budget stabilization account pursuant to Article VII, section 12(d)(ii) of the state Constitution.
A separate capital budget document or schedule shall be submitted
consistent with section 3 of this act.
Capital budget documents or schedules submitted to the legislature as required by RCW 43.88.030 must contain the following:
A statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;
A statement setting forth the full-time equivalent staff for each agency assigned to capital projects, in a manner comparable to staff reporting for operating expenditures;
A capital program consisting of proposed capital projects for the next biennium and the two biennia succeeding the next biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program must reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;
A capital plan consisting of proposed capital spending for at least four biennia succeeding the next biennium;
A strategic plan for reducing backlogs of maintenance and repair projects. The plan must include a prioritized list of specific facility deficiencies and capital projects to address the deficiencies for each agency, cost estimates for each project, a schedule for completing projects over a reasonable period of time, and identification of normal maintenance activities to reduce future backlogs;
For each major capital project request submitted:
A statement of the reason or purpose for a project;
Verification that a project is consistent with chapter 36.70A RCW;
A statement about the proposed site, size, and estimated life of the project, if applicable;
Estimated total project cost;
For major capital projects valued over $5,000,000, estimated costs for the following project components: Acquisition, consultant services, construction, equipment, project management, and other costs included as part of the project. Project component costs must be displayed in a standard format defined by the office of financial management to allow comparisons between projects;
Estimated total project cost for each phase of the project as defined by the office of financial management;
Estimated ensuing biennium costs;
Estimated costs beyond the ensuing biennium;
ix. Estimated construction start and completion dates;
For any capital appropriation requested for a state agency for the acquisition of land or the capital improvement of land in which the primary purpose of the acquisition or improvement is recreation or wildlife habitat conservation, the capital budget document, or an omnibus list of recreation and habitat acquisitions provided with the governor's budget document, must identify the projected costs of operation and maintenance for at least the two biennia succeeding the next biennium. Omnibus lists of habitat and recreation land acquisitions must include individual project cost estimates for operation and maintenance as well as a total for all state projects included in the list. The document must identify the source of funds from which the operation and maintenance costs are proposed to be funded;
For any capital budget request for funding for which the project cost is substantially increased, a statement detailing the amount and reason for the additional cost. If the increased cost is the result of a change in design, the agency must also submit a construction cost estimate for the design as originally submitted. For purposes of this subsection (1)(h), "substantially increased" means total estimated project costs are more than 15 percent above those listed in the prior agency budget request and for which the legislature relied on making a funding decision for design or construction, adjusted for C-100 inflation factors;
A list of appropriations for grant programs and community projects that have exceeded the time limits set out in section 5 of this act for reappropriation;
Such other information bearing upon capital projects as the governor deems useful;
Standard terms, including a standard and uniform definition of normal maintenance, for all capital projects; and
Such other information as the legislature may direct by law or concurrent resolution.
The following definitions apply throughout this section and section 4 of this act unless the context clearly requires otherwise.
"Capital project" means all phases of construction of a new facility, or significant, long-term renewal improvements or repairs to existing facilities, and may also include land or building acquisition and grants passed through to others for capital projects. "Capital project" does not include routine maintenance or operating expenditures.
"Institutions of higher education" has the same meaning as in RCW 28B.77.070.
"Major capital project" means any capital project in excess of $4,000,000 for institutions of higher education and $2,000,000 for all other agencies.
"Minor works projects" means any capital project that does not meet the threshold for a major capital project and which meets the requirements set out in section 4 of this act.
It is the intent of the legislature that amounts appropriated for minor works projects be spent in the biennium for which they are appropriated.
For the purpose of this section, "minor works projects" means projects that are valued between $25,000 and $2,000,000, with the exception of higher education minor works projects, which may be valued up to $4,000,000.
Administrative fees may not exceed four percent for each project.
Unless amounts appropriated by the legislature are designated for a particular purpose, agencies are encouraged to prioritize minor works projects based on:
Health and safety of employees or clients served;
The amount of use of a given facility or system;
The avoidance of future increased costs of repair or maintenance; and
The avoidance of increased operating costs.
Minor works projects appropriations may not be used for:
Projects that are a phase of a larger project, and that if combined over a continuous period of time, would exceed the amounts provided in subsection (2) of this section;
Studies, planning, or design, except for technical or engineering reviews or designs that lead directly to and support a minor works project;
Movable, temporary, and traditionally funded operating equipment not in compliance with the equipment criteria established by the office of financial management, including rolling stock and computers;
Software not dedicated to control of a specialized system;
Moving expenses;
Land or facility acquisition; or
Funding for projects with funding shortfalls unless expressly authorized by the office of financial management for exigent circumstances with notice to the legislative fiscal committees.
If a minor works project appropriation does not specify it is to be used for preservation or program improvements, up to 25 percent of the appropriation may be used for program improvements. Improvements for accessibility in compliance with the Americans with disabilities act qualify as preservation improvements.
General minor works projects reappropriations should be spent before newly appropriated amounts.
Requests for minor works projects appropriations for the next biennium must take into account minor works projects amounts to be reappropriated and the amount of minor works projects that can reasonably be completed in the next biennium.
Nothing in this section prohibits the office of financial management from instituting further procedures before the allotment of funds.
The definitions in section 3 of this act apply to this section.
The legislature intends that appropriations for grant programs and community projects be spent in a timely manner in order to accomplish the goal for which they were appropriated.
Capital budget documents submitted pursuant to section 3 of this act may not include a request to reappropriate moneys for projects for which a contract has not been executed within four years from the date of original appropriation or for which appropriations have not been spent within six years of original appropriation:
For grant programs and community projects appropriated from the state building construction account; or
For other programs for which the capital budget appropriations act specifies the appropriation is subject to the provisions of this section.
Nothing in this section operates as a guarantee of reappropriation.
This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds.
Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.
The director of financial management shall provide all agencies with a complete set of operating and capital instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.
Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor.
The office of financial management shall develop a method for monitoring capital appropriations and expenditures that will capture at least the following elements:
Appropriations made for capital projects including transportation projects;
Estimates of total project costs including past, current, ensuing, and future biennial costs;
Comparisons of actual costs to estimated costs;
Comparisons of estimated construction start and completion dates with actual dates;
Documentation of fund shifts between projects.
This data may be incorporated into the existing accounting system or into a separate project management system, as deemed appropriate by the office of financial management.
review and approval of the agency's predesign consistent with section 7 of this act.
No expenditure may be incurred or obligation entered into for major capital construction projects with a total anticipated cost in excess of $10,000,000 including, without exception, land acquisition, site development, predesign, design, construction, and equipment acquisition and installation, until the allotment of the funds to be expended has been approved by the office of financial management. This limitation does not prohibit the continuation of expenditures and obligations into the succeeding biennium for projects for which allotments have been approved in the immediate prior biennium.
If at any time during the fiscal period the governor projects a cash deficit in a particular fund or account as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments for that particular fund or account so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods. Except for the legislative and judicial branches and other agencies headed by elective officials, the governor shall review the statement of proposed operating expenditures for reasonableness and conformance with legislative intent. The governor may request corrections of proposed allotments submitted by the legislative and judicial branches and agencies headed by elective officials if those proposed allotments contain significant technical errors. Once the governor approves the proposed allotments, further revisions may at the request of the office of financial management or upon the agency's initiative be made on a quarterly basis and must be accompanied by an explanation of the reasons for significant changes. However, changes in appropriation level authorized by the legislature, changes required by across-the-board reductions mandated by the governor, changes caused by executive increases to spending authority, and changes caused by executive decreases to spending authority for failure to comply with the provisions of chapter 36.70A RCW may require additional revisions. Revisions shall not be made retroactively. However, the governor may assign to a reserve status any portion of an agency appropriation withheld as part of across-the-board reductions made by the governor and any portion of an agency appropriation conditioned on a contingent event by the appropriations act. The governor may remove these amounts from reserve status if the across-the-board reductions are subsequently modified or if the contingent event occurs. The director of financial management shall enter approved statements of proposed expenditures into the state budgeting, accounting, and reporting system within forty-five days after receipt of the proposed statements from the agencies. If an agency or the director of financial management is unable to meet these requirements, the director of financial management shall provide a timely explanation in writing to the legislative fiscal committees.
It is expressly provided that all agencies shall be required to maintain accounting records and to report thereon in the manner prescribed in this chapter and under the regulations issued pursuant to this chapter. Within ninety days of the end of the fiscal year, all agencies shall submit to the director of financial management their final adjustments to close their books for the fiscal year. Prior to submitting fiscal data, written or oral, to committees of the legislature, it is the responsibility of the agency submitting the data to reconcile it with the budget and accounting data reported by the agency to the director of financial management.
The director of financial management may exempt certain public funds from the allotment controls established under this chapter if it is not practical or necessary to allot the funds. Allotment control exemptions expire at the end of the fiscal biennium for which they are granted. The director of financial management shall report any exemptions granted under this subsection to the legislative fiscal committees.
For purposes of this section and section 7 of this act, "total anticipated cost" means the sum of the anticipated cost of the predesign, design, and construction phases of the project.
Except as provided in subsection (3) of this section, agencies must complete a predesign for any state construction project with a total anticipated cost in excess of $10,000,000. The predesign must include, but not be limited to, the following elements:
Evaluation of facility program requirements and consistency with long-range plans;
Exploration of at least three distinct and viable project alternatives with justification of the chosen alternative as the most reasonable and cost effective solution, including life-cycle cost analysis;
Utilization of a system of cost, quality, and performance standards to comparable major capital construction projects; and
A requirement to incorporate value-engineering analysis and constructability review into the project schedule.
Prior to approval, the office of financial management shall provide a copy of the predesign to the fiscal committees of the legislature.
The office of financial management may make an exception to some or all of the predesign requirements. The office of financial management shall report any exception to the fiscal committees of the legislature and include: (a) A description of the major capital project for which the predesign waiver is made; (b) an explanation of the reason for the waiver; and (c) a rough order of magnitude cost estimate for the project's design and construction.
In deliberations related to submitting an exception under subsection (3) of this section, the office of financial management shall consider the following factors:
Whether there is any determination to be made regarding the site of the project;
Whether there is any determination to be made regarding whether the project will involve renovation, new construction, or both;
Whether, within six years of submitting the request for funding, the agency has completed, or initiated the construction of, a substantially similar project;
Whether there is any anticipated change to the project's program or the services to be delivered at the facility;
Whether the requesting agency indicates that the project may not require some or all of the requirements in subsection (1) of this section due to a lack of complexity; and
Whether any other factors related to project complexity or risk, as determined by the office of financial management, could reduce the need for, or scope of, a predesign.
If under subsection (3) of this section, some or all of the predesign requirements are waived, the office of financial management may instead propose a professional project cost estimate instead of a request for predesign funding.
The definitions in RCW 43.88.110 apply throughout this section.
The office of financial managementmay authorize a transfer of the appropriation authority for a capital project that is in excess of the amount required for the completion of the project to another capital project for which the appropriation is insufficient.
No such transfer may be used to expand the capacity or change the intended use of the project beyond that intended by the legislature in making the appropriation.
The transfer may be effected only between capital projects within a specific department, commission, agency, or institution of higher education.
The transfer may be effected only if the project from which the transfer of funds is made is substantially complete and there are funds remaining, or bids have been let on the project from which the transfer of funds is made and it appears to a substantial certainty that the project can be completed within the biennium for less than the amount appropriated.
For the purposes of this section, the legislature intends that each project be defined as proposed to the legislature in the governor's budget document, unless the legislative history demonstrates that the legislature intended to define the scope of a project in a different way.
The office of financial management shall notify the legislative fiscal committees of the senate and the house of representatives at least thirty days before any transfer is effected under this section except emergency projects or any transfer under two hundred fifty thousand dollars, and shall prepare a report to such committees listing all completed transfers at the close of each fiscal year.
This section sets forth the major fiscal duties and responsibilities of officers and agencies of the executive branch. The regulations issued by the governor pursuant to this chapter shall provide for a comprehensive, orderly basis for fiscal management and control, including efficient accounting and reporting therefor, for the executive branch of the state government and may include, in addition, such requirements as will generally promote more efficient public management in the state.
Governor; director of financial management. The governor, through the director of financial management, shall devise and supervise a modern and complete accounting system for each agency to the end that all revenues, expenditures, receipts, disbursements, resources, and obligations of the state shall be properly and systematically accounted for. The accounting system shall include the development of accurate, timely records and reports of all financial affairs of the state. The system shall also provide for central accounts in the office of financial management at the level of detail deemed necessary by the director to perform central financial management. The director of financial management shall adopt and periodically update an accounting procedures manual. Any agency maintaining its own accounting and reporting system shall comply with the updated accounting procedures manual and the rules of the director adopted under this chapter. An agency may receive a waiver from complying with this requirement if the waiver is approved by the director. Waivers expire at the end of the fiscal biennium for which they are granted. The director shall forward notice of waivers granted to the appropriate legislative fiscal committees. The director of financial management may require such financial, statistical, and other reports as the director deems necessary from all agencies covering any period.
Except as provided in chapter 43.88C RCW, the director of financial management is responsible for quarterly reporting of primary operating budget drivers such as applicable workloads, caseload estimates, and appropriate unit cost data. These reports shall be transmitted to the legislative fiscal committees or by electronic means to the legislative evaluation and accountability program committee. Quarterly reports shall include actual monthly data and the variance between actual and estimated data to date. The reports shall also include estimates of these items for the remainder of the budget period.
The director of financial management shall submit progress reports at least twice a year to the appropriate legislative committees regarding the status of all appropriated capital projects with a total anticipated cost in excess of $10,000,000, including transportation projects, and showing any significant cost overruns or underruns. If funds are shifted from one project to another, the office of financial management shall also reflect this in the report. Once a project is complete, the report shall provide a final summary showing estimated start and completion dates of each project phase compared to actual dates, estimated costs of each project phase compared to actual costs, and whether or not there are any outstanding liabilities or unsettled claims at the time of completion.
In addition, the director of financial management, as agent of the governor, shall:
Develop and maintain a system of internal controls and internal audits comprising methods and procedures to be adopted by each agency that will safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies for accounting and financial controls. The system developed by the director shall include criteria for determining the scope and comprehensiveness of internal controls required by classes of agencies, depending on the level of resources at risk.
For those agencies that the director determines internal audit is required, the agency head or authorized designee shall be assigned the responsibility and authority for establishing and maintaining internal audits following professional audit standards including generally accepted government auditing standards or standards adopted by the institute of internal auditors, or both.
For those agencies that the director determines internal audit is not required, the agency head or authorized designee may establish and maintain internal audits following professional audit standards including generally accepted government auditing standards or standards adopted by the institute of internal auditors, or both, but at a minimum must comply with policies as established by the director to assess the effectiveness of the agency's systems of internal controls and risk management processes;
Make surveys and analyses of agencies with the object of determining better methods and increased effectiveness in the use of manpower and materials; and the director shall authorize expenditures for employee training to the end that the state may benefit from training facilities made available to state employees;
Establish policies for allowing the contracting of child care services;
Report to the governor with regard to duplication of effort or lack of coordination among agencies;
Review any pay and classification plans, and changes thereunder, developed by any agency for their fiscal impact: PROVIDED, That none of the provisions of this subsection shall affect merit systems of personnel management now existing or hereafter established by statute relating to the fixing of qualifications requirements for recruitment, appointment, or promotion of employees of any agency. The director shall advise and confer with agencies including appropriate standing committees of the legislature as may be designated by the speaker of the house and the president of the senate regarding the fiscal impact of such plans and may amend or alter the plans, except that for the following agencies no amendment or alteration of the plans may be made without the approval of the agency concerned: Agencies headed by elective officials;
Fix the number and classes of positions or authorized employee years of employment for each agency and during the fiscal period amend the determinations previously fixed by the director except that the director shall not be empowered to fix the number or the classes for the following: Agencies headed by elective officials;
Adopt rules to effectuate provisions contained in (a) through (f) of this subsection.
The treasurer shall:
Receive, keep, and disburse all public funds of the state not expressly required by law to be received, kept, and disbursed by some other persons: PROVIDED, That this subsection shall not apply to those public funds of the institutions of higher learning which are not subject to appropriation;
Receive, disburse, or transfer public funds under the treasurer's supervision or custody;
Keep a correct and current account of all moneys received and disbursed by the treasurer, classified by fund or account;
Coordinate agencies' acceptance and use of credit cards and other payment methods, if the agencies have received authorization under RCW 43.41.180;
Perform such other duties as may be required by law or by regulations issued pursuant to this law.
It shall be unlawful for the treasurer to disburse public funds in the treasury except upon forms or by alternative means duly prescribed by the director of financial management. These forms or alternative means shall provide for authentication and certification by the agency head or the agency head's designee that the services have been rendered or the materials have been furnished; or, in the case of loans or grants, that the loans or grants are authorized by law; or, in the case of payments for periodic maintenance services to be performed on state owned equipment, that a written contract for such periodic maintenance services is currently in effect; and the treasurer shall not be liable under the treasurer's surety bond for erroneous or improper payments so made. When services are lawfully paid for in advance of full performance by any private individual or business entity other than equipment maintenance providers or as provided for by RCW 42.24.035, such individual or entity other than central stores rendering such services shall make a cash deposit or furnish surety bond coverage to the state as shall be fixed in an amount by law, or if not fixed by law, then in such amounts as shall be fixed by the director of the department of enterprise services but in no case shall such required cash deposit or surety bond be less than an amount which will fully indemnify the state against any and all losses on account of breach of promise to fully perform such services. No payments shall be made in advance for any equipment maintenance services to be performed more than twelve months after such payment except that institutions of higher education as defined in RCW 28B.10.016 and Washington technology solutions created in RCW 43.105.006 may make payments in advance for equipment maintenance services to be performed up to sixty months after such payment. Any such bond so furnished shall be conditioned that the person, firm or corporation receiving the advance payment will apply it toward performance of the contract. The responsibility for recovery of erroneous or improper payments made under this section shall lie with the agency head or the agency head's designee in accordance with rules issued pursuant to this chapter. Nothing in this section shall be construed to permit a public body to advance funds to a private service provider pursuant to a grant or loan before services have been rendered or material furnished.
The state auditor shall:
Report to the legislature the results of current post audits that have been made of the financial transactions of each agency; to this end the auditor may, in the auditor's discretion, examine the books and accounts of any agency, official, or employee charged with the receipt, custody, or safekeeping of public funds. Where feasible in conducting examinations, the auditor shall utilize data and findings from the internal control system prescribed by the office of financial management. The current post audit of each agency may include a section on recommendations to the legislature as provided in (c) of this subsection.
Give information to the legislature, whenever required, upon any subject relating to the financial affairs of the state.
Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include determinations as to whether agencies, in making expenditures, complied with the laws of this state. The state auditor is authorized to perform or participate in performance verifications and performance audits as expressly authorized by the legislature in the omnibus biennial appropriations acts or in the performance audit work plan approved by the joint legislative audit and review committee. The state auditor, upon completing an audit for legal and financial compliance under chapter 43.09 RCW or a performance verification, may report to the joint legislative audit and review committee or other appropriate committees of the legislature, in a manner prescribed by the joint legislative audit and review committee, on facts relating to the management or performance of governmental programs where such facts are discovered incidental to the legal and financial audit or performance verification. The auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report. This subsection (6) shall not be construed to authorize the auditor to allocate other than de minimis resources to performance audits except as expressly authorized in the appropriations acts or in the performance audit work plan. The results of a performance audit conducted by the state auditor that has been requested by the joint legislative audit and review committee must only be transmitted to the joint legislative audit and review committee.
Be empowered to take exception to specific expenditures that have been incurred by any agency or to take exception to other practices related in any way to the agency's financial transactions and to cause such exceptions to be made a matter of public record, including disclosure to the agency concerned and to the director of financial management. It shall be the duty of the director of financial management to cause corrective action to be taken within six months, such action to include, as appropriate, the withholding of funds as provided in RCW 43.88.110. The director of financial management shall annually report by December 31st the status of audit resolution to the appropriate committees of the legislature, the state auditor, and the attorney general. The director of financial management shall include in the audit resolution report actions taken as a result of an audit including, but not limited to, types of personnel actions, costs and types of litigation, and value of recouped goods or services.
Promptly report any irregularities to the attorney general.
Investigate improper governmental activity under chapter 42.40 RCW.
In addition to the authority given to the state auditor in this subsection (6), the state auditor is authorized to conduct performance audits identified in RCW 43.09.470. Nothing in this subsection (6) shall limit, impede, or restrict the state auditor from conducting performance audits identified in RCW 43.09.470.
The joint legislative audit and review committee may:
Make post audits of the financial transactions of any agency and management surveys and program reviews as provided for in chapter 44.28 RCW as well as performance audits and program evaluations. To this end the joint committee may in its discretion examine the books, accounts, and other records of any agency, official, or employee.
Give information to the legislature or any legislative committee whenever required upon any subject relating to the performance and management of state agencies.
Make a report to the legislature which shall include at least the following:
Determinations as to the extent to which agencies in making expenditures have complied with the will of the legislature and in this connection, may take exception to specific expenditures or financial practices of any agencies; and
Such plans as it deems expedient for the support of the state's credit, for lessening expenditures, for promoting frugality and economy in agency affairs, and generally for an improved level of fiscal management.
For early learning facilities collocated with affordable or supportive housing developments, the department may remit state funding on a reimbursement basis for up to 100 percent of eligible project costs, regardless of the project's match amount, once the nonstate share of project costs have been either expended or firmly committed in an amount sufficient to complete the entire project or a distinct phase of the project that is useable to the public as an early learning facility. Eligible housing developments are projects that have received public funding and have secured enough funding to complete construction of the project that will result in a certificate of occupancy to open the affordable housing development, including the early learning facility.
The council shall identify budget priorities and levels of funding for higher education, including the two and four-year institutions of higher education and state financial aid programs. It is the intent of the legislature for the council to make budget recommendations for allocations for major policy changes in accordance with priorities set forth in the ten-year plan, but the legislature does not intend for the council to review and make recommendations on individual institutional budgets. It is the intent of the legislature that recommendations from the council prioritize funding needs for the overall system of higher education in accordance with priorities set forth in the ten-year plan. It is also the intent of the legislature that the council's recommendations take into consideration the total per-student funding at similar public institutions of higher education in the global challenge states.
By December of each odd-numbered year, the council shall outline the council's fiscal priorities under the ten-year plan that it must distribute to the institutions, the state board for community and technical colleges, the office of financial management, and the joint higher education committee.
b.
The office of financial management shall reference these reporting requirements in its budget instructions.
The council shall submit recommendations on the operating budget priorities to support the ten-year plan to the office of financial management by October 1st each year, and to the legislature by January 1st each year.
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The office of financial management shall develop one prioritized list of capital projects for the legislature to consider that includes all of the projects requested by the four‑year institutions of higher education that were scored by the office of financial management pursuant to chapter 43.88D RCW, including projects that were previously scored but not funded. The prioritized list of capital projects shall be based on the following priorities in the following order:
Office of financial management scores pursuant to chapter 43.88D RCW;
Preserving assets;
Degree production; and
Maximizing efficient use of instructional space.
The office of financial management shall include all of the capital projects requested by the four‑year institutions of higher education, except for the minor works projects, in the prioritized list of capital projects provided to the legislature.
The form of the prioritized list for capital projects requested by the four‑year institutions of higher education shall be provided as one list, ranked in priority order with the highest priority project ranked number "1" through the lowest priority project numbered last. The ranking for the prioritized list of capital projects may not:
Include subpriorities;
Be organized by category;
Assume any state bond or building account biennial funding level to prioritize the list; or
Assume any specific share of projects by institution in the priority list.
Institutions and the state board for community and technical colleges shall submit any supplemental capital budget requests and revisions to the office of financial management by November 1st and to the legislature by January 1st.
For the 2019-2021 fiscal biennium and the 2021-2023 fiscal biennium, pursuant to subsection (4) of this section, the office of financial management may, but is not obligated to, develop one prioritized list of capital projects for the legislature to consider that includes all of the projects requested by the four-year institutions of higher education that were scored by the office of financial management pursuant to chapter 43.88D RCW, including projects that were previously scored but not funded.