House nixes a transportation-fund benchmark

House leadership had a showdown Tuesday with lawmakers leery of setting an annual "benchmark" for funding transportation.

Leadership lost.

A bill with the potential to shift $2 billion in state sales tax over the next 10 years to transportation was amended late Tuesday to remove a clause allowing for the funding shift. The amendments passed; a final vote is expected today. After that the bill will go to the Senate.

Under HB1008, about $135 million in sales tax dollars could have been moved next year to help fund transportation. The $135 million is equal to a 0.36 percent diversion of sales tax. After next year, the diversion would increase to 0.56 percent.

All of these shifts of money were subject to legislative approval.

Rep. Gordon E. Snow, R-Roosevelt, sponsored the amendment, saying he was uncomfortable codifying a suggested amount of money to be transferred to transportation each year.

"I feel I'm smart enough to realize you don't take money from the general fund that's already been taken," he said. "This body is responsible enough to say at the beginning of the year, 'Lets take so much off for transportation.' But let's not earmark it in advance."

Other Republican lawmakers echoed that concern, saying a benchmark for transportation might open the door for money to be permanently siphoned from other state programs. Sales tax dollars come from the state's general fund, which pays for programs like health and human services, corrections and higher education.

"I want you to know that that money is going to be taken out of the general fund and applied to transportation and it's going to be taken from something else," said Rep. Steve Mascaro, R-West Jordan. "If it takes a tax increase (to fund transportation), let's be strong enough to stand up and tell our constituents what we need to do in the future." About $7 billion is needed over the next 10 years for road and transit improvements to stave off gridlock, according to the Wasatch Front Regional Council. That number increases to $21 billion if applied to the next 30 years.

Rep. Becky Lockhart, R-Provo, who sponsored the legislation, said the bill was designed to address those needs, albeit inadequately. It's raises far less than what is actually needed, she said.

"We believe this is a legitimate revenue source for transportation," said Lockhart, one of a dozen lawmakers who studied the issue as part of a two-year transportation task force. "There is no earmarking of this revenue. There is no earmarking in this bill. There is a benchmark or rule in this bill. It is to call our attention to this issue. This statute does not bind us in any way."

During the general legislative session, members of the House passed a bill similar to HB1008, but with the provision for sales tax diversions. The bill was filibustered in the Senate during the waning minutes of the session.

---

E-mail: nwarburton@desnews.com