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House approves SB94 to recognize post‑employment liabilities under GASB; amendment to change revenue allocation rejected
Summary
The House passed Senate Bill 94 to change statewide accounting for retirement liabilities under GASB, which carries a $45 million fiscal note and will require states to report $45 million more in liabilities (offset by a larger one‑time paper gain); an amendment to force tax revenue to be booked in the year received failed.
The Utah House of Representatives passed Senate Bill 94 on third reading to require the state to recognize post‑employment benefit liabilities on an accrual basis in line with a Governmental Accounting Standards Board (GASB) requirement.
Sponsor Representative Valentine told the House the bill produces a $45,000,000 increase in reported liabilities while creating a substantial paper gain elsewhere: "We have a $45,000,000 increase ... it will be offset by a $4,545,000,000 dollar decrease at the paper gain," he said, adding that the change is chiefly an accounting recognition and does not create additional spendable cash.
Representative Maxfield proposed an amendment to require that "notwithstanding any other provision, tax revenue shall be allocated to the year in which received," arguing it would limit subjective revenue‑booking and one‑time paperwork entries. The sponsor and other supporters said the amendment would reverse the bill’s intended conversion to full accrual accounting and risk returning the state to a modified accrual basis. The amendment was defeated on the floor.
Supporters said the bill improves transparency and reduces incentives to hide liabilities off the books. "We'll take some of the gainsmanship out of this business," Representative Harris said during debate, adding that recognizing liabilities should encourage more fiscal restraint. Opponents cautioned that accrual accounting gives officials some subjective choices about timing and allocation of revenue, which could complicate budgeting unless governance is clear.
The House voted to pass SB94 unanimously, 65‑0; the bill will be signed by the speaker and transmitted to the Senate for concurrence and further action.
What happens next: The bill moves to the Senate for its further consideration; the accounting change will appear on the state's financial statements and requires follow‑up rules and fiscal monitoring as implementation proceeds.
