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House approves road-fund amendments, provides $5 million ‘soft landing’ for hold-harmless counties
Summary
House Bill 4,002 (first substitute) passed the Utah House 66-1 after sponsor Representative Johnny Anderson described changes to the growth-factor look-back and a one-time $5 million payment ($3M general fund, $2M transportation funds) to ease budget impacts on hold-harmless counties.
The Utah House passed the first substitute to House Bill 4,002, which revises the Class B and Class C road funding formula and provides a one-time $5 million soft-landing payment to certain hold-harmless counties, during the fourth special session in November 2016.
Representative Johnny Anderson, sponsor of the first substitute, said the substitute primarily changes the look-back period for the growth factor used in calculations, from 02/1415 to 02/1516, and that affected parties had been consulted. Anderson described a history dating to 1996 when distribution shifted toward population and lane miles, creating hold-harmless counties to preserve funding levels for large, sparsely populated counties.
The bill includes a $5,000,000 soft landing for the hold-harmless counties as a one-time payment: $3,000,000 from the state general fund and $2,000,000 from transportation-fund surplus. Anderson said an additional $5,678,000 will be placed into the B and C road fund to help non-hold-harmless entities; he explained the 30% share calculation from the transportation-fund surplus.
Representative Anderson walked members through sections that set a final payment for fiscal year 2016, describe how fiscal 2017 calculations will differ, and put a new growth formula in place for remaining hold-harmless counties. He said that after 2017, the number of hold-harmless counties would drop from 12 to 2 (Kane and Garfield counties) and the bill includes measures to prevent a sudden funding cliff if those counties grow beyond the threshold.
On the floor the House moved a motion to substitute the first substitute for HB 4,002, the motion passed, and then the House voted on the bill. The first substitute passed the House with 66 yes votes and 1 no vote; Representative Powell later asked and was granted leave to cast a yes vote on the prior bill without intervening business.
Representative Anderson said the measure had been vetted by UDOT, fiscal analysts, state finance, the League of Cities and Towns, and the Association of Counties. The bill now moves to the Senate for consideration.
