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Special session passes budget adjustments, interest sweep and tax fix; lawmakers approve salary bill authority
Summary
The Senate approved a package including higher‑education budget flexibility (SB 2,003), capture of interest on restricted funds (SB 2,004), a correction to aircraft parts tax language (HB 2,001) and authority to alter the automatic legislator salary increase in a special session (HB 2,002); senators also received a detailed briefing on one‑time and ongoing budget reductions.
During the Sept. 26 special session the Utah Senate moved several budget and technical bills and voted to refer or send them to the House for final handling. Lawmakers also received an extended floor briefing on the negotiated budget cuts and restorations.
Senator Hilliard, leading the appropriations work, emphasized the session’s goal was to finish the package without bonding and without touching the principal of the rainy day fund. “I want to make it clear, we are not taking money out of the rainy day fund,” he told colleagues while describing statutory changes to capture interest earned on restricted funds and apply that interest to general and education fund needs.
Key enacted actions and floor outcomes included:
- Senate Bill 2,003 (Higher Education Budget Authority): Passed the Senate 27–0. The bill gives higher education limited authority, for the current round of cuts, to move non‑lapsing balances within the scope of the imposed reductions so institutions can manage immediate shortfalls.
- Senate Bill 2,004 (Deposit of interest earned on restricted funds): Passed the Senate (25 yes, 0 nay; 4 absent). The sponsor said the bill captures interest generated by the rainy day and school funds (approximately $10.2 million ongoing and about $16.0 million one‑time as described on the floor) and directs those interest amounts into the funding package.
- House Bill 2,001 (Sales and use tax exemption for aircraft parts and equipment): Passed unanimously in the Senate and returned to the House for the speaker’s signature. Sponsors said the bill restores prior "common carrier" language to correct an unintended consequence that burdened aircraft repair businesses.
- House Bill 2,002 (Amendments to legislator salaries): The Senate passed enabling legislation to allow the Legislature in an even‑numbered special session to decrease or reject a recommended compensation commission increase; the floor recorded 23 yes, 4 no and 2 absent. Senators debated process and symbolism; some argued such changes should wait for the general session, while others noted the symbolic importance amid broad budget reductions.
Senator Hilliard provided a line‑by‑line overview of budget reductions and restorations distributed to senators, noting public education received a 3% reduction offset partially by one‑time funds, higher education faced a 4% reduction but retained non‑lapsing balances, and roughly fewer than 200 state positions might be eliminated through attrition and efficiency rather than mass layoffs. He also listed restorations for items including a governor’s energy advisor, coal mine safety funding, corrections staffing and nursing‑home alternative programs.
The Senate recessed at noon with additional items and votes scheduled for reconvening later in the day.
