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House Rejects Amendment to Automatically Send Rainy‑Day Interest to School Fund, Passes HB298
Summary
Lawmakers debated whether interest above a $500 million cap in the Budget Reserve (Rainy Day) Fund should be earmarked for the Uniform School Fund; an amendment to direct excess interest to schools failed 34–35, but the underlying HB298 bill passed the House 66–4.
The Utah House of Representatives on the floor debated a contested amendment to House Bill 298, a measure dealing with the Budget Reserve Account and money management rules, before approving the main bill.
Representative James Hansen offered Amendment No. 3 to direct interest earned on Rainy Day Fund balances above a $500 million cap into the Uniform School Fund. Hansen argued the change would create a new source for education without raising taxes: "we already have a school trust fund that's building up... I think that's why I support the amendment and the bill." Supporters said the amendment restored language that had previously been part of the bill and would allow systematic, predictable support for education.
Opponents warned that the amendment would earmark general fund dollars and limit future legislatures' flexibility. Representative Alexander said the state already has a school trust fund and cautioned against automatically rerouting general‑fund resources. Representative Bridal urged rejection, saying earmarking now could remove legislative discretion to respond to future needs such as Medicaid or highway projects.
After extended debate and questions about constitutional and statutory effects, the House voted on Amendment No. 3. The amendment failed by a narrow margin, 34 yes to 35 no. Later, the House voted to pass HB298 as amended in other respects; the roll call showed 66 yes and 4 no.
The House returned HB298 to the Rules/Enrolling process following the vote. With the amendment defeated, legislators said the issue of how to allocate future excess investment returns will remain a policy question for later sessions.
The procedural next step is enrollment and transmittal to the Senate, per the House rules.
