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Utah Senate moves $225 million to cash for prison funding, avoids bonding
Summary
The Utah Senate passed SB3001 in a special session to shift roughly $225 million from planned bonds into cash appropriations for the new state prison construction, a move sponsors said avoids borrowing costs; the vote was 26-0 with three absent and the bill was sent to the House.
The Utah State Senate voted to pass Senate Bill 3001 on final passage, moving roughly $225 million in planned bond financing to state cash to fund ongoing construction of a new prison. The measure passed on voice/roll-call counts announced by the clerk: 26 yea, 0 nay, 3 absent, and was sent to the Utah House for consideration.
Sponsor Senator Jerry Stevenson, introducing the bill, said legislators had already appropriated cash previously for the project and that the state’s current revenue outlook made it unnecessary to issue bonds now. “At the present time, we just do not need to bond,” Stevenson said, adding the change would avoid interest costs tied to borrowing and give the state flexibility to bond later if needed.
Why it matters: shifting the financing from bonds to cash changes the state’s near-term debt obligations and reduces borrowing costs the Legislature would otherwise carry while construction continues. Stevenson told colleagues the project had prior cash commitments (including $65,000,000) and that bonding of up to $285,000,000 had been authorized; SB3001 would supplant roughly $225,000,000 of that planned borrowing with cash on hand.
Opponents and cautionary voices: Senator Hilliard urged prudence, saying he was concerned about unclear construction costs and recounting a Cache County experience where voters rejected tax increases for jail construction. “In building these things, I have no idea what the costs are and what should be included and what shouldn't be included,” Hilliard said, asking the Senate to be cautious about large expenditures.
Another senator, speaking from the floor, said placing the prison in what the speaker described as “the most expensive side” was a poor policy choice and said constituents in the district that hosts a prison were unhappy that more state funds would flow there.
Procedure and next steps: Under a suspension of the constitutional three-reading requirement, the Senate read the bill for first, second and third times and voted. The clerk announced that SB3001 had passed and would be transmitted to the House for its consideration. Senators recessed until the House could act; the special session continued when both chambers reconvened.
The House’s action and any final enrollment changes will determine whether the appropriation takes effect as the Senate sent it.
