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House approves $88.5 million in general obligation bonds for state projects
Summary
The Utah House passed House Bill 4 on March 10, 2011, authorizing $88,516,000 in general obligation bonds and $2,185,500 in operations-and-maintenance funding for projects including a Utah State Hospital consolidation and a Weber State Davis classroom building; the measure passed 53–20.
SALT LAKE CITY — The Utah House of Representatives approved House Bill 4 on March 10, 2011, authorizing $88,516,000 in general obligation bonds and $2,185,500 in operations-and-maintenance (O&M) funding for a package of state building projects.
Sponsor Representative (speaker 7) told colleagues the package combines several projects and outside funding: “What this bill does is authorizes bonds to be issued in the amount of $88,516,000 together with operation and maintenance budget of $2,185,500.” He listed the largest allocations as $25,000,000 for the Utah State Hospital consolidation in Utah County and about $30,105,000 for a Weber State Davis classroom building, and said the package includes roughly $28.9 million in outside or donated funds, a roughly 25 percent cash infusion.
Supporters argued the timing was right because construction costs and interest rates were low and because local partners had offered matching resources. Representative (speaker 10) said localities were prepared to match funds and pledged property and cash, and estimated “a $7,000,000 a year return in various taxes” and other savings once projects were completed. Representative (speaker 15) urged action on the State Hospital project and said the state should pursue more community-based services for children rather than inpatient care at the state hospital.
Opponents cautioned about debt levels and long-term fiscal exposure. Representative (speaker 11) said fiscal analysts had warned the state was approaching its allowable debt limit and argued that federal budget risks could undermine bond markets: “I cannot support additional debt into the state of Utah.”
After additional debate and a successful motion to end debate, the chamber voted to pass House Bill 4. The final tally, announced by the presiding officer (speaker 8), was 53 yes and 20 no. The bill will be transmitted to the Senate for further consideration.
Funding breakdowns the sponsor presented include the $25 million State Hospital consolidation; $30,105,000 for Weber State Davis classroom building (with projected O&M); $14,000,000 for a Utah State University business-building addition; approximately $9,981,000 for Tooele Applied Technology College campus improvements; $5,000,000 for archives and DATC warehouse in Davis County; and $3,000,000 for a land purchase for Salt Lake Community College Harriman campus. Sponsor figures also listed $2,185,500 in O&M for projects that require ongoing funding.
Next steps: the bill will be sent to the Utah Senate for its consideration. The House also completed votes on multiple concurrence items the same day, but House Bill 4 was the single major bonding authorization debated on the floor during this session.
