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Rules Committee backs bill to split severance tax bond allocations into three shares
Summary
Senate Bill 514 would divide severance tax bond capacity into equal thirds among the governor, the Senate and the House; the Rules Committee recommended a do‑pass on the bill after debate over the governor's ability to fund statewide projects.
Senate Bill 514, which would place in statute a three‑way split of severance tax bond capacity among the governor, the Senate and the House, received a do‑pass recommendation from the Senate Rules Committee after senators debated whether the proposal would limit the governor’s ability to fund statewide or regional projects.
Sponsor Senator Woods said the change would remove annual negotiation about allocations and put the division into law: one‑third for the governor (for statewide projects), one‑third for the Senate and one‑third for the House. Proponents said the bill would protect legislative appropriations power and limit ad‑hoc reallocations.
Opponents warned that defining the governor’s third only for statewide projects could constrain targeted investments in rural communities that rely on executive matching or prioritized projects. Senator Stefanik and others asked that the bill’s definition of “statewide significance” remain sufficiently flexible to allow projects such as courthouses, regional infrastructure and rural needs to be funded.
Senators debated how vetted statewide projects are identified and whether legislative and executive roles in vetting projects are preserved. The sponsor said the Legislative Finance Committee (LFC) and vetting processes already identify statewide projects for funding consideration.
On a committee roll call, the motion to give SB 514 a do‑pass recommendation carried with five votes in favor and two against. Committee supporters said the change would preserve legislative appropriation authority; critics urged careful drafting to avoid unintentionally cutting off options for regional or rural projects funded via the governor’s share.
Senator Townsend, explaining his yes vote, described the bill as preserving the legislature’s role as appropriator and not a partisan measure. The bill now moves to further committee consideration as it advances through the process.
