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Senate hears SB171 to direct excess budget reserves into coal trust; fiscal staff says near-term yields unlikely
Summary
SB171 would deposit a share of excess budget reserves into the coal severance trust. Sponsor framed it as a modest savings policy; fiscal staff said the bill is unlikely to produce significant funds under current projections.
Senator Fern told the committee Senate Bill 171 would direct a portion of excess budget reserves into the coal severance trust as a way to save in surplus years. "The proposal is to take 10% of excess revenue and place it into the funds," he said, framing it as a prudent savings measure.
Sam Schafer of the legislative fiscal division responded that recent extraordinary collections after the pandemic created one-time ending fund balances and that the fiscal note suggests the bill may not generate significant new deposits in the near term. Schafer outlined recent collection variability — from about $44 million in 2021 to a peak near $88 million and $77 million in FY24 — and said projections show declining severance collections over the biennium.
Sponsor Fern said the measure is aimed at building savings in favorable years so the trust benefits from surpluses rather than leaving all excess revenues in the general fund. The committee did not take executive action; the hearing closed with a request for further consideration and no recorded vote.
