Senate passes reservists tuition waiver and tax subtraction; fiscal note raises appropriation questions

The Utah Senate passed first substitute Senate Bill 13 on Feb. 23, 2005, creating an income tax subtraction and a tuition‑waiver program for certain active-duty reservists.

Senator Stevenson, the bill sponsor, told the Senate the program includes a waiver of tuition at state institutions of higher education and a modest income‑tax exemption for qualifying reservists. He cited a fiscal-note estimate of $3,900,000 for the tuition waiver and $1,100,000 for the tax deduction and said the revised fiscal note includes language directing funding to the State Board of Regents for distribution. "Our fiscal analysts have included language in the fiscal note, which states funding for the tuition waiver program would be appropriated to the State Board of Regents for distribution," Stevenson said. He also said that if the funding is not appropriated the mechanism to require compliance would be unclear.

Senator Bell, representing higher-education appropriations, praised the intent but warned against creating an unfunded mandate for institutions and asked for express language that the waiver is subject to appropriation; Stevenson and others cited the revised fiscal note as addressing that concern, and senators said they would continue clarifying language between Senate and House consideration.

The Senate passed the bill by roll call (23 aye, 0 nay, 6 absent) and referred it to the House for further action. The bill's fiscal implications and the mechanics of appropriation to the State Board of Regents were identified on the floor as matters to resolve in appropriations and in the House deliberations.

Ending: SB13 passed the Senate with an acknowledgement that appropriators will need to fund the tuition-waiver program; sponsors pointed to fiscal-note language meant to allocate funds to the State Board of Regents, but senators noted final funding depends on the appropriations process.