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A Senate committee on Monday set the stage for a final showdown before the Legislature adjourns later this week over whether to spend nearly a half-billion dollars over the next 11 years on transportation, education or water projects — or split it among the three.

The Senate Transportation Committee voted 4-1 to advance HB296 to transfer that pot of money out of earmarked transportation funds and put it into the general fund, where it could be spent any way that lawmakers decide.

But Rep. Johnny Anderson, R-Taylorsville, said the real purpose in advancing that bill now is that it "gives me a little more leverage in those negotiations" in the education-water-transportation funding fight.

Competing with Anderson's bill is the Senate-passed SB80 by Sen. Stuart Adams, R-Layton to transfer about $37 million a year from transportation funds to water projects, including possibly the controversial Lake Powell pipeline. Over 11 years, it would transfer about $472.6 million from transportation to water.

Anderson's bill would transfer a similar $450 million over 11 years, but start more slowly. It would transfer $10 million the first year, $20 million the second, $30 million the third, and so forth, until $50 million a year are transferred, which would continue.

Gov. Gary Herbert has proposed the same sort of transfers as Anderson, but Herbert wants the money to go to education. Others oppose the transfers and want the money to stay with transportation, and warn transfers could slow needed projects.

Anderson said the state has been earmarking some sales tax money for transportation with the argument that 17 percent of all sales tax is generated from purchases of cars and accessories.

The trouble is, he said transportation is now taking 22 percent of all sales tax, so it makes sense to transfer some of it back to the general fund for other uses.

Final appropriations bills have penciled in a $9 million transfer next year from transportation to education. But negotiations are ongoing in the three-way fight.

Anderson said Monday he thinks money will be taken from transportation, and a lion's share will go to education in the first year. He said water also had needs, but they cannot "be solved just by taking money out of the Transportation Investment Fund."

He said it's going to require "water managers and citizens throughout this state to take a hard look at water use and water rates and what the water needs are gong to be moving forward," and maybe raise water rates to address them. He said some transportation money, however, might help "prime the pump."

Adams, meanwhile, said, "I'm confident we can find a way to blend these bills together" and find a fair compromise.

Carlos Braceras, executive director of the Utah Department of Transportation, said his department can live with the slower transfers proposed by Anderson and the governor — and said they would not delay currently programmed projects. But they could delay other projects in the future that do not yet have firm start dates.

Braceras said the bigger transfers proposed for water by Adams would cause delays in some big projects already scheduled, such as extending the Mountain View Corridor or some projects to improve U.S. 89 in Davis County.

Some members of the Senate Transportation Committee said they are upset that lawmakers are talking about taking money away from transportation just a year after the Legislature raised gasoline prices with the argument that transportation needs were dire in the state.

Anderson said that increase went to road maintenance, while different funds — for construction of large projects — is what is being targeted now.

"Did you guys blind side us?" asked Sen. Wayne Harper, R-Taylorsville. "We've got some angry people out there who think you are playing games with them."

Sen. Karen Mayne, D-West Valley City, said she wants money to remain with transportation, but voted for the bill to allow negotiations to continue.

Sen. Kevin Van Tassell, R-Vernal, said the state cannot afford both Anderson's and Adams' bills — "So I hope we can have some sort of a compromise, or we can kill them both and start over next summer."