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Senate advances constitutional trust-fund resolution amid debate over tobacco money and withdrawal rules
Summary
The Senate advanced SJR 14, a resolution to create a constitutional institutional trust fund (intended to receive future appropriations such as tobacco-settlement proceeds), but senators debated whether the measure should specify withdrawal thresholds or an identified funding stream before sending it to third reading.
Senate Joint Resolution 14, to create a constitutional institutional trust fund, was advanced to third reading following extensive floor debate.
Sponsor (recorded on the floor as Senator Poulton/Polten) said the resolution establishes a constitutionally protected place to park future appropriations and does not itself appropriate or identify particular funding streams. "This is only establishing the fund," the sponsor said.
Several senators asked for stronger protections before creating the fund. Senator Hilliard suggested supermajority withdrawal thresholds if the principal were ever to be invaded; Senator Davis and others asked whether tobacco-settlement proceeds would be dedicated and whether the fund should include a clear recurring revenue source. Opponents said it might be premature to create another trust fund without knowing the long-term revenue streams and cautioned that funds could be appropriated away in lean years.
Supporters pointed to the potential long-term benefit of preserving capital for future generations if the fund is disciplined. After floor debate, the Senate advanced SJR 14 to the third-reading calendar by roll-call vote (18 aye, 10 nay, 1 absent reported on the floor).
Next steps: The resolution will go to third reading; sponsors signaled some anticipated amendments to clarify withdrawal thresholds and how the fund would interact with other budgeting mechanisms.
