House panel approves $70 million for highway fund

Last fall, members of a task force set several goals for funding transportation projects across the state.

The top priorities: create a plan to raise money for road and transit projects, pay off old debts — and don't raise taxes.

While not quite what they wanted, the task force received preliminary approval Monday for those three priorities.

Members of the House Transportation Committee unanimously passed a bill that would add $70 million in ongoing funds to the Centennial Highway Fund for fiscal year 2006.

HB18 also paves the way for money to be added to the Centennial Fund each additional year — and also toward new road projects.

"To me, this is monumental," said Rep. Stuart Adams, R-Layton. "We have never had a revenue stream for transportation that grows with inflation."

Added Rep. Brad Dee, R-Washington Terrace: "For the first time ever, we have the governor and the Senate and the House agreeing on transportation funds."

Under HB18, Centennial monies would be transferred to a new fund: the Transportation Investment Fund of 2005.

In fiscal year 2007, depending upon legislative approval, approximately $100 million would be added to the Centennial, which would be a restricted sub-account within the Investment Fund. The money would come from sales tax on vehicle and vehicle-related products —— funds that currently go into the state's general fund.

Each year after, legislators could appropriate additional money toward paying off the Centennial Highway Fund. Any money "above and beyond" what's sent to Centennial would go to the Investment Fund.

It's a plan that could allow the state to build roads like the Mountain View Corridor. It could also allow the state to pay for the increasing costs of the Legacy Parkway and maintain roads already built by the Centennial Fund.

"Right now, the projection is for $60 million that should be going into Centennial — that's for projects under construction or for those that will be," said Tom Hudachko, spokesman for the Utah Department of Transportation.

"This more than doubles the contribution to Centennial and the benefit is that you pay your debt off a lot faster."

While transportation planners and business leaders were pushing for more money than would be allocated under HB18, they were pleased with Monday's vote.

"This puts the Centennial Highway Fund first," said Sam Klemm, spokesman for the Wasatch Front Regional Council. "It will help us finish paying off the Centennial Highway Fund first before we move on to new projects."

The Regional Council is "grateful for every nickel," he added.

But nearly $23 billion is needed over the next 30 years to pay off planned transportation projects, including roads and transit. The Legislature will need to go through this process again, Klemm said.

Adams said funding appropriated in the bill likely will change in the coming days — most likely to $90 million in ongoing funds, depending on the final appropriations bill.

While still not enough to pay for all planned projects, he said HB18 is a good first step.

"It sets it into a process," he said, "and gives us a road map."

HB18 now goes to the full House for debate.

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E-mail: nwarburton@desnews.com