House approves revenue bonds after removing university parking language

The Utah House on the floor approved House Bill 287, a package of revenue bonds and capital facilities authorizations, after lawmakers adopted an amendment deleting reference to parking revenues for the University of Utah Hospital.

Representative Greg Buxton, the bill sponsor, moved amendment number 1 to strike the words “and parking” from the financing language, arguing the parking revenue “go to a different area” and do not fund the hospital expansion. The House adopted the amendment without recorded opposition and later passed the bill on final reading.

The amendment and subsequent questioning focused lawmakers’ attention on the fiscal note and long-term operating costs. Representative (questioner) raised that the fiscal note shows anticipated annual state-funded operations and maintenance impacts of $475,400 if all projects are constructed; Buxton confirmed that passing the bill would, in essence, obligate that future O&M cost to the general fund. Buxton said the projects (including the University of Utah Hospital West Wing and humanities building) are expected to come online about two years out.

Buxton characterized the package as funded primarily through internal service funds, student fees, donations and revenue bonds rather than direct upfront state appropriations. He told the chamber the bill includes funding for facilities’ operations and maintenance and noted Weber State University and Snow College projects would use different funding sources (student fees and donations, respectively).

After discussion, the House closed debate and the roll call showed the bill passed 72-0. The bill will be transmitted to the Senate for consideration.

What’s next: The bill goes to the Utah Senate; sponsors and budget staff will need to monitor the later O&M fiscal impacts tied to each facility as projects move from authorization to construction.