In 1995 JLARC conducted a performance audit of the state’s capital planning and budgeting process. In the course of the audit, JLARC developed several versions of a Life-Cycle Cost Model for the purpose of comparing leasing versus ownership alternatives for state facilities. The 2006 Supplemental Capital Budget (ESSB 6384 § 101) directs JLARC to conduct an update to the Life-Cycle Cost Model. With this update, JLARC reviews the model’s underlying economic assumptions and enhances the model’s ability to compare alternative financing approaches, including state general obligation bond funding, certificates of participation, and 63-20 financing. The report also reviews the state’s requirements for using life cycle cost analysis in the capital project review process.