Committee advances bill to earmark half of lapsing general‑fund dollars for children’s programs

Representative Matthews introduced a bill to capture a portion of what she described as modest, end‑of‑year lapsing general‑fund balances and place half of that money into a restricted account for children’s needs. "The 3 uses for the money in this restricted account will go to the 3 things that we feel like are most impactful for Utah’s kids," she said, describing allocations of 34% to the Office of Childcare, 33% to the Behavioral Health Commission, and 33% to the State Board of Education for K–3 interventions and paraeducator support.

Members asked constitutional and policy questions about source funds. Representative Kettler and others asked whether lapsing funds come from the general fund or income tax fund; Representative Jen Veil clarified that lapsing funds targeted by the bill come from the general fund and that the arrangement would not take funds constitutionally restricted to the income tax fund. She explained internal appropriations reprogramming would remain intact and that the substitute focuses on small end‑of‑year residuals rather than large line items.

Stakeholders from the childcare and behavioral health sectors spoke in support. Corey Holdaway, representing the Utah Private Child Care Association, said the Office of Childcare faced a recent $22 million shortfall and that state action could help. Elizabeth Garvey of United Way of Salt Lake cited a 15% drop in federal Child Care and Development Fund dollars and urged support. Tamara Atala, first vice chair of the Utah Behavioral Health Commission, said the commission’s recommendations have received minimal funding and that the proposed dollars could fund capacity and outreach.

Opponents and some committee members urged caution. Members asked whether the substitute needs caps and whether allocating money year to year could create expectations for ongoing funding; sponsors responded that the substitute is designed to operate only in surplus years and that captured funds are one‑time, not an ongoing obligation.

Representative Romero moved to adopt the first substitute and later moved that the committee favorably pass HB 453 (substitute 1) out of committee. A roll call recorded seven yes votes (McPherson, Malloy, Romero, Stoddard, Wilton, Loubay, Hayes) and four no votes (Feofia, Cutler, Pearson, Chair Burton); the chair announced the measure passed 7–4.