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Utah lawmakers will be back at the Capitol next week in a bid to override Gov. Gary Herbert's veto of a bill earmarking an estimated $60 million in sales tax revenue for road construction.
Legislative leaders decided to go ahead with the override of their fellow Republican governor after they were unable to reach agreement on a compromise with Herbert's office after more than a week of negotiation. That included a late-night negotiation Monday at the Governor's Mansion between Senate President Michael Waddoups, Herbert, Lt. Gov. Greg Bell and Sen. Stuart Adams, the sponsor of the bill, which proved fruitless.
"We threw out a ton of different options trying to make it work," Waddoups said Tuesday. "He indicated he didn't want to be overridden, and we didn't want to override him, but we think it's a budgeting tool we need. We think it's the type of thing that helps us be one of the best managed states."
Herbert said he vetoed four bills after the legislative session because "I do not believe they are in the public's best interest." Earmarking transportation money, he said, could hinder the state's ability to address other needs, such as education.
"I am confident that my positions serve the best interests of the people of Utah — now, and into the future," he said.
Legislators are planning to hold the override session on May 6 at 8 a.m. It will mark just the third time in 15 years that lawmakers took the step of overriding a governor's veto. Waddoups said there will be support from Democrats for the override, as well as Republicans.
House Speaker Becky Lockhart said she remains open to considering an override of three other bills vetoed by the governor, including one that requires state offices to be open on Fridays. But Waddoups said differences over the other three bills have been hammered out with the governor and will either be handled through executive orders or addressed later in the year at a special session.
The transportation funding bill would earmark 30 percent of the growth in sales tax revenues for road construction projects — an estimated $60 million a year, depending on how quickly the state's economy grows. The alternative, supporters warned, is increasing the gas tax. The state gas tax hasn't been increased in 14 years and revenues from the levy have been flat.
Lockhart said dedicating the sales-tax money to road projects is a good economic development move. "If you can't move goods and services, you're not going to attract jobs to the state," she said.
Senate Minority Leader Ross Romero, D-Salt Lake City, said he doesn't understand why there needs to be a veto override session when the earmark isn't even due to take effect until July 2012. Before then, the Legislature plans to meet in at least one and possibly two special sessions and its annual general session in January.
"There appears to be a disagreement between the Republican legislators and the governor," he said. "I don't see the legitimate policy reason to [override] so that tells me there may be political reasons to do so, which I'm not familiar with."
Waddoups said he asked Herbert to call a special session to address the issue. "We would have done that in a heartbeat," he said, but Herbert wouldn't commit.
Herbert vetoed SB229, arguing that, while quality roads are vital to success, the "automatic earmark will translate into decreased ability to fund other budget priorities, such as higher education, human services and economic development, in future years."
House Majority Leader Brad Dee, R-Ogden, in an e-mail to his colleagues earlier this month obtained by The Salt Lake Tribune, said the governor is right that spending on other programs could be limited, but that may be a good thing.
"The simple fact remains," Dee wrote, referring to the governor's veto letter, that "this bill will translate into the inability to grow government in other areas. WOW! I think he has stated our case."
Dee said Monday that capping government growth would be a welcome side-effect of SB229.
"I'm not a fan of growing government. I'm a fan of funding government we already have. I'm not looking for new programs," he said.
Lockhart said other programs in the state won't be starved.
"We have done this in the past," she said of the transportation set-aside. "If there are other needs that rise to the top, we will address those needs by taking money from transportation. We have done it before."
Advocates for low-income children and Commissioner of Higher Education William Sederburg have weighed in against SB229, arguing that other programs have been starved during the recession and should be considered on equal footing with roads.
Romero said he opposes dedicating sales-tax money to transportation projects.
"I think it too severely restricts future budgets. ... If we do need to increase that funding source, I think the gasoline tax is a more appropriate, specific mechanism," Romero said. "I think the governor's position is reasonable as to the veto, and it will be interesting to see his strength as to whether he can sustain his veto by communicating with individual members of the Legislature."
During negotiations, legislators offered to lower the set-aside. One proposal would have dropped the earmark to as little as $30 million.
Adams, R-Layton, the former chairman of the Utah Transportation Commission, has said that the bill is intended to assure there is enough money for Utah roads without having to raise the gasoline tax.
The issue is of particular interest to northern Utah lawmakers, since it is anticipated that is where much of the money will be spent after the Interstate 15 project in Utah County is completed. —
Vetoed bills
Any of these bills could be taken up at the May 6 override session:
SB229 • would earmark 30 percent of the growth in sales tax revenue for roads.SB294 • would give health insurers more pricing flexibility with small employers. The governor said it would shift costs to older customers.
SB305 • would attempt to steer college students to majors in demand from businesses.
HB328 • would require state agencies to be accessible to the public five days a week, either physically, online or by phone. Herbert said the bill would cost $1 million.