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Committee advances bill to divide severance tax bond allocation into three equal shares
Summary
A senator introduced legislation to statutorily divide severance tax bond capacity into equal thirds for the governor, the Senate and the House. The Rules Committee gave the bill a do-pass recommendation after debate over statewide-project definitions and the governor’s ability to use funds for regional projects.
Senator Woods (presenting the measure as Senate Bill 514) described a proposal to put into statute a three-way division of severance tax bond (STB) capacity: one third for the governor to use on statewide projects, one third for the Senate and one third for the House. The sponsor said the change would remove annual negotiations about how to divide the STB capacity and ensure a predictable split going forward.
Supporters framed the bill as protecting legislative appropriations authority and preventing the executive from taking a disproportionate share of STB capacity during negotiations. Senator Brantley described the bill as “one of the most important financial impact bills” this session and said a statutory split would preserve the legislature’s role as appropriator.
Opponents and questioning senators raised concerns that limiting the governor’s allocation to “statewide or regional significance” could restrict the executive’s ability to fund projects in poor or rural counties that rely on state matching. One senator warned that a courthouse or other regional-scale project aided by the governor could be excluded by an overly narrow definition of statewide significance.
The committee discussed the mechanics of capital outlay, project vetting and using cash versus bond proceeds in an unusually cash-rich year. Deputy LFC staff noted the process for vetting statewide projects and the committee considered how statutory language could be structured to preserve regional and rural priorities.
Senator Townsend moved a do-pass recommendation on Senate Bill 514. The roll-call recorded five votes in favor and two against; the motion carried and the bill will proceed to the next committee or floor stage for further consideration.
