SALT LAKE CITY -- A local lawmaker's bid to dedicate revenues generated by taxes on natural resources to a trust fund, rather than the general fund, was defeated in the House by a 39-36 count Monday.
Sponsored by Rep. Jim Nielson, R-Bountiful, HB210 would have mandated the immediate redirection of some of the tax generated by gas, oil and mining tax revenues into the existing state trust fund.
The trust fund is to prepare for the future, when natural resources may no longer generate revenue for a given community.
The trust fund currently has more than $100 million but has been limited in its growth because much of the money has been redirected to the general fund, Nielson said.
By contrast, Wyoming and Nevada have $3 billion to $4 billion in their funds because they have not tapped the revenue, the Bountiful representative said.
Nielson estimates his bill would have taken $20 million from the general fund in the 2013 fiscal year budget. That request comes in a year when lawmakers are expected to wrestle with increased revenue of approximately $400 million, some of it in one-time funds.
"There is never a good time to invest for the future, but yet we must. Some will say, 'Well, let's wait for the good times.' What if these are the good times?" Nielson said.
He called the issue the most important one the Utah Legislature would tackle this session.
Rep. Brian King, D-Salt Lake City, said taking $20 million out of anticipated revenue in the general fund for the next fiscal year would have serious consequences. He noted the general fund helps finance higher education and Medicaid, among other programs.
"I wouldn't have a problem with it if we were flush. The fact is, we're not flush. We need to react responsibly. If we're serious about saving for the future, let's do it in a way that doesn't hurt the state of Utah today," King said.
He suggested alternatives be considered.
Some lawmakers said the state always has programs in place to mitigate some of the impact of a potential loss of the specialized tax revenue on communities in the future.
Lawmakers also noted that some of the redirected money from the fund had financed hospitals and other key projects in the Beehive State.
Rep. Ryan Wilcox, R-Ogden, said the bill needs to be looked at as an investment in the future. He said the amount in Utah's fund from the severance tax revenue compared with some of the state's neighbors is embarrassing.
"Future Utahns won't benefit when we spend that money the moment we get it. I know it's hard. It's a difficult decision, but if we don't start looking to the long term, we won't be able to protect that benefit for the long term," Wilcox said.
He was one of nine Top of Utah legislators to vote for the measure.
House Speaker Rebecca Lockhart, R-Provo, said the negative vote doesn't mean the issue won't come up again during the session.
Nielson has another bill, HB6, that would move to put the measure up for a public vote to be included in the state constitution. That bill would require a two-thirds majority from both the House and Senate before being eligible for a public vote.
Referring to the fate of the bills, Lockhart said, "It's not over until midnight on the final day."
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