Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Trust Fund topic
No spam. Unsubscribe anytime.
Senate advances constitutional amendment to let Legislature place revenue into permanent trust fund
Summary
Senate passed SJR 2 to allow the Legislature to deposit state revenue into a permanent trust fund similar to the tobacco settlement trust, sparking debate about county impacts and whether mineral-lease or severance taxes should be dedicated. Sponsors said the change only permits — not mandates — deposits and preserves withdrawal safeguards.
The Utah Senate voted to advance Senate Joint Resolution 2, a constitutional amendment that would permit the Legislature to place state revenue into an existing permanent trust fund so interest could be used for public purposes while the principal remains preserved. Senator Sandra Hilliard, sponsor of the resolution, said the change gives the Legislature the option to set money aside from volatile sources such as severance taxes and mineral-lease receipts for future generations.
"What this bill does is simply provide that we now as a legislature, by however we choose to do it, can put money into this trust fund," Hilliard said, adding that the proposal had unanimous support from the Tax Review Commission and the Constitutional Revision Commission.
Supporters argued the measure would help smooth boom-and-bust cycles from nonrenewable-resource revenues. Hilliard noted that severance-tax receipts normally total about $35 million but in the current year were about $70 million and said without a mechanism the excess funds were likely to be spent. "I can guarantee it. It'll be spent," she said.
Opponents pressed for caution. Senator Evans warned that many mineral-lease funds are earmarked to counties where extraction occurs and said the state must be careful not to divert dollars meant to offset local impacts. "Those monies belong to those counties where that money's generated from," Evans said, urging that the state respect the intent of federal lease rules.
Senator Carlene Jenkins said she worried the proposal could create a vehicle for hiding money from near-term needs, calling it a potential "rat hole." Hilliard responded that the amendment only opens the door to deposit funds and that withdrawal would still require a high legislative threshold. She noted the trust could still only be invaded with concurrence of three-fourths of the Legislature and the governor.
The resolution was approved on the floor with the roll-call result reported in the transcript as 27 yes, 0 nay, and 2 absent. Backers said the next step — if voters approve the constitutional change — would be a subsequent legislative decision about which revenue sources, if any, to place into the fund.
The Senate record shows the debate focused on the scope of eligible revenue sources, the protection of local county allocations derived from mineral leases, and the constitutional-level safeguard for withdrawing principal. The resolution now moves forward per the normal constitutional amendment process.
