Retained excess state revenues - public schools, higher education, and roads, bridges, and transit - further allocation. The act is contingent on voters approving a related referred measure to annually retain and spend state revenues in excess of the constitutional spending limit. The act requires 1/3 of this money in the account to be allocated for each of the following purposes:
- Public schools;
- Higher education; and
- Roads, bridges, and transit.
The general assembly is required to appropriate the money for public schools and higher education for the state fiscal year after the state retains the revenue under the authority of the voter-approved revenue change. The money appropriated for public schools must be distributed on a per pupil basis and used by public schools only for nonrecurring expenses for the purpose of improving classrooms, and it may not be used as part of a district reserve.
The state treasurer is required to transfer the remaining 1/3 of the money to the highway users tax fund (HUTF), and this money is further allocated 60% to the state highway fund, 22% to counties, and 18% to cities and incorporated towns. No more than 85% of the money allocated to the state highway fund may be expended for highway purposes or highway-related capital improvements and at least 15% must be expended for transit purposes or for transit-related capital improvements.
(Note: This summary applies to this bill as enacted.)