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Senate backs constitutional amendment to create flexible trust for excess severance taxes after extended debate

Utah State Senate · February 2, 2006
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Summary

The Utah Senate approved Senate Joint Resolution 2, a constitutional amendment proposal to create a new trust to hold severance-tax surpluses and let the Legislature invest those funds for long-term purposes; debate centered on what revenue qualifies, voting thresholds to deposit funds and the balance between saving and current spending.

The Utah Senate voted to approve Senate Joint Resolution 2, a proposed constitutional amendment that would allow the state to set aside surplus severance-tax revenue in a second trust fund and use investment income for general‑fund purposes under rules the Legislature would later set.

Senator L. Hilliard, sponsor of the resolution, framed the measure as long-term planning: "we're talking some long term planning," he said, arguing the state should build a reserve to address future needs such as water and roads and grow the state school trust. Hilliard said bond counsel advised a rainy‑day reserve at about 5 percent of the budget (roughly…

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