Update: Infrastructure, HTRZs, and Budget

Happy Friday -- only one week to go! Quick update on a few items.

HB433: Infrastructure Investment Amendments (Rep. Mike Schultz)

As we reported to you on Wednesday, HB433 (Amendments Related to Infrastructure Funding) (Rep. Mike Schultz) would authorize nearly $2.3 billion in investments in state roads, public transportation, active transportation, and outdoor recreation, through a combination of the authorization of new bonding and the appropriation of available one-time revenues. Here’s our detailed summary of HB433 that we first shared with you on Wednesday night.

Here are a set of slides about HB433 that provide further information on the components of the infrastructure funding proposal. The first section provides details about the proposed bonding. The second section provides details about each of the projects that are listed in HB433 to be funded from available one-time cash, and projects that could be prioritized by the State Transportation Commission and funded with bond proceeds. 

Representative Schultz presented the summary slides this morning to the House Economic Development and Workforce Services Committee, which voted unanimously to approve HB433; the bill now goes to the full House for consideration. In committee, Representative Schultz emphasized several points about HB433, including:

  • Transportation choices to accommodate growth: HB433 is multi-modal, providing funding for road projects around Utah, as well as historic investments in public transit, active transportation, and outdoor recreation. 
  • Debt limits: HB433 provides that bonds will not be issued that would cause total current outstanding general obligation debt of the state to exceed 50% of the constitutional limitation. In fact, as the slides indicate, even with the bond issuance authorized in HB433, the debt-limit percentage is expected to decline to below 30% over the next five years. 

WFRC Chair and Millcreek City Mayor Jeff Silvestrini testified in committee in support of HB433, noting that the bill is reflective of the joint principles for infrastructure investment developed by WFRC and Utah’s other MPOs, along with ULCT and UAC. As a reminder, those principles are:

  • Invest in infrastructure.
  • Support multi-modal transportation choices.
  • Utilize the professional planning and prioritization process.
  • Be fiscally prudent - balance current infrastructure investment needs with long-term fiscal stability.

UDOT’s Executive Director Carlos Braceras and UTA Trustee Beth Holbrook shared additional information and expertise with the committee. 

Here’s a story from the Deseret News about the proposal: 

It’s important to recognize that this may not be the final bill. Discussions continue between the House and Senate. 

SB217sub1: Housing and Transit Reinvestment Zones (HTRZ) (Senator Wayne Harper)

SB217sub1 the Housing and Transit Reinvestment Zone (HTRZ) Act was substituted (modified) and passed the Senate today. Here is a summary of the substituted bill. 

The HTRZ proposal is designed to get "all hands on deck" to help Utah tackle its housing crisis by facilitating mixed-use, multi-family and affordable housing development within a 1/3-mile radius of FrontRunner stations. This capitalizes on the State’s plan to make historic investments in strategic double-tracking of FrontRunner to increase capacity, speed, and frequency. 

Development proposals that utilize HTRZ would be required to:
  • be mixed-use;
  • average at least 50 housing units to the acre; and
  • have at least 10% affordable housing. 

Some of the changes included in Sub1 are:
  • Technical clarifications and details for city development proposals and required independent financial gap analysis.
  • An amount equal to 15% of the incremental growth in state sales tax revenues collected in HTRZs will be deposited into the state’s Transit Transportation Investment Fund (TTIF).
  • Transit projects in HTRZs shall be given priority consideration for TTIF funds. 

Supporters of SB217 include: WFRC, MAG, ULCT, UAC, UTA, Salt Lake Chamber. 

Budget Update

For those of you who pay close attention to the budget process, late today the Executive Appropriations Committee released the initial round of proposed funding items. You can see the funding lists in the Meeting Material List. 

Have a great weekend!


Andrew S. Gruber
Executive Director
C 801-824-0055