Connecticut House Bill HB05173

Connecticut 2010 Regular Session

• Introduced: 2/11/10
• Refer: 2/11/10

Caption

An Act Concerning An Annual Review Of The State's General Obligation Debt.

Impact

The bill aims to reduce the state's overall indebtedness and the related debt service obligations that impact the state budget. By instituting this regular review process, the state will be better positioned to manage its debts, potentially leading to more prudent fiscal policies and improved financial stability. Supporters of the bill believe that it will help ensure that the state does not take on more debt than it can manage, thereby protecting taxpayers and state resources in the long term.

Summary

House Bill 05173, introduced by Rep. Reynolds, focuses on enhancing transparency and accountability concerning the state's general obligation debt. The bill mandates an annual review of the size and affordability of such debt, which will be conducted by the Capital Debt Affordability Advisory Committee. This committee is tasked with evaluating the state's debt situation and providing recommendations to the Governor, the General Assembly, and the State Bond Commission regarding the maximum amount of new long-term general obligation debt that can be safely authorized for the upcoming fiscal year.

Contention

While the intention behind HB 05173 is broadly aimed at increasing fiscal responsibility, there may be some contention regarding the implications of the recommendations made by the Advisory Committee. Critics might argue about the constraints such recommendations could impose on future funding for state projects, particularly if the maximum allowable debt is perceived to be too restrictive. Conversely, proponents will likely emphasize the necessity of sound fiscal practices to avoid burdensome debt levels in the future.