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House adopts change to rainy‑day targets, raising education reserve to 7%
Summary
First substitute HB49 passed the House to set the education rainy‑day fund target at 7% and the general fund at 6%, end automatic year‑end surplus transfers once targets are met, and clarify withdrawal rules for operating deficits; supporters said the change protects funding volatility for education.
The Utah House passed the first substitute to House Bill 49 on the third-reading calendar, updating state budget reserve rules. Representative Wayne Harper described the substitute as setting the education rainy‑day target at 7% (up from 6%) and the general fund target at 6, while ending automatic year‑end surplus transfers once those caps are reached.
Harper told members the change reflects national practice and a desire to maintain fiscal responsiveness while protecting education funding, which he said is more volatile. "We set percentages and then we've gone through and said that we want to be fiscally responsive, but the automatic transfers will end once we get to that 6% or 7% cap," Harper said.
Members asked about current balances and other accounts. Harper said the state’s education fund was roughly 4.5%–5% and the general fund about 5.5% at the time of debate; the substitute leaves the disaster recovery account's caps and rules unchanged while clarifying withdrawal procedures to permit legislative action during an operating deficit.
Some members urged larger reserves. Representative Carroll argued a fuller reserve (roughly one month of spending, about 8.33%) would be more prudent for economic swings, but Harper and others said the chosen targets reflected interim committee recommendations and a two‑year review plan.
The House passed the substitute bill by voice vote with a recorded tally of 66 yes, 0 no, and referred the measure to the Senate for further consideration.
