Committee reviews proposals to restore purchase‑and‑use tax revenue to transportation; $10M FY27 transfer proposed

At the same Senate Transportation meeting, legislative counsel presented two funding options to direct more purchase‑and‑use tax revenue to the transportation fund while protecting education fund receipts.

Damian Leonard outlined "option one," which would transfer $10 million from the general fund to the transportation fund in fiscal 2027 (a placeholder rounding of a House estimate of about $9.9 million) and then step down transfers from the purchase‑and‑use tax to the education fund over five years so that more revenue returns to transportation in subsequent years. "Option two" is similar but spreads the step‑down over six years.

Leonard said both options use estimates from legislative fiscal staff and that the dollar figures are placeholders that can be adjusted to align with the budget bill and JFO projections. He framed the proposals as ways to restore purchase‑and‑use tax revenue that historically defaulted to transportation prior to prior transfers that temporarily shunted a portion to education.

Committee members asked clarifying questions about the mechanics and timing of transfers and how the proposals interact with other revenue streams. No committee vote was taken; members recessed for lunch and planned to resume work after agency and research follow‑ups on the mileage‑based user fee.

Next steps: staff will reconcile the purchase‑and‑use options with JFO revenue estimates and committee priorities as the bill proceeds through the committee process.