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House approves transportation funding overhaul to boost TIF and permit early Centennial Fund transfers
Summary
The Utah House passed First Substitute House Bill 314 to raise the Transportation Investment Fund edicated sales tax share from 8.3% to 10.1% (a projected ~$36 million) and to allow Centennial Highway Fund surplus cash flow and certain right-of-way work to flow into the TIF; vote was 49—or, 18 gainst.
The Utah House on Feb. 22 approved First Substitute House Bill 314, a measure to revise the Transportation Investment Fund (TIF) and shift a larger share of dedicated sales tax receipts to transportation projects.
Representative Rebecca Lockhart, sponsor of the bill, told colleagues the proposal increases the TIF-dedicated sales-tax share from 8.3% to 10.1%, a change she said would cost the general fund "approximately $36,000,000." She also said the bill allows positive cash flow in the Centennial Highway Fund —expected in the 2010 fiscal year—to be directed into the TIF and permits TIF dollars to be used for right-of-way acquisition on large capacity and congestion-mitigation projects.
The change was defended as aligning with recommendations from the Transportation Planning Task Force and the Tax Commission—s estimate that roughly 17% of sales tax is related to motor-vehicle purchases and operation, which the sponsor said supports targeting a larger share to transportation.
Opponents warned the shift reduces available general-fund dollars for other state priorities. Representative McGee pressed the sponsor for fiscal detail and cited the fiscal note showing a $36,911,000 reduction to the general fund. Representative Littback and others argued that dedicating more general-fund money to transportation now would constrain choices for health, human services and education and urged caution.
Lockhart responded that the bill reduces the state—s reliance on bonding and that accelerating use of Centennial Fund surplus is fiscally prudent given improved fund performance. She framed the change as necessary to reduce congestion and support economic development by preserving mobility.
After debate, the House voted to approve the first substitute under suspension of the rules; the bill passed 49 yes to 18 no and was referred to the Senate for further consideration.
What happens next: The bill will go to the Utah Senate for further consideration; sponsors said implementation timing would follow cash-flow realities and appropriations.
Vote and motion provenance: Motion to consider under suspension and subsequent debate introduced by Representative Rebecca Lockhart; final tally announced on the floor (49 yes, 18 no).
