Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transportation Bonding topic
No spam. Unsubscribe anytime.
Senate approves $1 billion transportation bonding authority and criteria for project selection
Summary
The Senate adopted a second substitute to House Bill 314 authorizing up to $1 billion in state bonding for critical highway projects, creating a Critical Highway Needs Fund and adding criteria (including alternative routes to I‑15 reconstruction); the measure passed after an amendment to prioritize critical alternative routes.
The Utah Senate on Feb. 27 approved a major transportation funding measure that authorizes up to $1 billion in bonding for highway projects and creates a new Critical Highway Needs Fund.
Senator Kilpack (floor sponsor) described the second substitute to House Bill 314 as establishing a revenue account into which $90 million of certain tax revenue would be deposited and used as a dedicated source to back up to $1 billion in project bonds. "What this bill does is it creates a revenue account, the Critical Highway Needs Fund, and it deposits $90,000,000 of certain tax revenue," Kilpack said on the floor while outlining project criteria and the financing plan.
The substitute establishes project-selection criteria that prioritize projects in high-growth areas, those with high commercial/energy development impact, projects that mitigate congestion, and projects with available local or matching funds. Senator Stevenson successfully added Amendment 1 to require consideration of critical alternative routes for priority I‑15 reconstruction projects, to ensure capacity is available during major interstate reconstruction.
Supporters said the authority fills an urgent funding gap and would allow the state to tackle large, high-priority projects while other funding streams (TIF, CHEF) mature. Skeptics raised concerns about politicization of project selection, bonding capacity and the timing of using one-time or dedicated revenues for long-term bonds. Senator Walker warned that prioritization and the executive-appropriations process must avoid a purely political selection.
The Senate voted under multiple suspensions of rules to consider the bonding authority and related procedural waivers; President Valentine announced the substitute had received 26 yes votes and 3 no votes and the bill would be returned to the House for further action.
Next steps include enrollment and House concurrence on the senate amendment; the bill directs the Department of Transportation to return a financing plan showing how positive cash-flow from CHEF and other sources would service bonds and fund the I‑15 reconstruction when ready.
