Committee hears that governor’s line‑item veto restored CIPA transfers and could exhaust PMTF reserve by FY2028

Members of the Select Committee on Capital Financing & Investments spent the morning reviewing changes made by the governor’s line‑item veto to 2025 Senate File 169 and what LSO staff said will be materially different fiscal outcomes for the Permanent Mineral Trust Fund (PMTF) reserve account and accounts the law calls the Strategic Investments and Projects Account (CIPA/SIPA) and the Legislative Stabilization Reserve Account (LSRA). The committee directed staff to draft corrective legislation and asked the treasurer and LSO to work on options for the next meeting.

LSO attorney Michael Fuller and LSO budget analyst Polly Scott told the committee that the enacted bill would originally have repealed SIPA effective July 1, 2026, and removed a statutory guarantee from the PMTF reserve account for transfers to CIPA. The governor’s line‑item veto instead made the act effective immediately and (among other changes) reversed the split of PMTF earnings above 2.5% so that those excess earnings would be credited entirely to CIPA rather than split between CIPA and the LSRA. Fuller summarized: “The primary purpose of that bill was to repeal SIPA effective 07/01/2026. The governor reversed the repeal and made the entire act…