Connecticut House Bill HB05394

Connecticut 2010 Regular Session

• Introduced: 2/26/10
• Refer: 2/26/10
• Report Pass: 3/25/10
• Refer: 4/6/10
• Report Pass: 4/13/10

Caption

An Act Increasing The Amount Of Unappropriated Surplus Deposited In The Budget Reserve Fund.

Impact

If enacted, the bill's provisions would have a significant impact on the state's financial practices concerning surplus funds. The increase in the reserve fund would imply that less surplus may be available for other appropriations, which could affect various state programs and services. Supporters of the bill argue that this is a necessary precaution to ensure that the state is well-prepared for future financial challenges, while opponents might raise concerns about the potential limitations on funding for essential services and projects resulting from reduced access to surplus funds outside the reserve.

Summary

House Bill 05394 focuses on modifying the current laws governing the handling of unappropriated surplus funds within the state budget. Specifically, the bill proposes to increase the percentage of unappropriated surplus that is transferred to the Budget Reserve Fund from ten percent to fifteen percent. This change is intended to strengthen the state's financial reserves and provide a buffer against future economic downturns. By allocating a larger portion of surplus funds to the reserve, the bill aims to enhance fiscal stability and ensure that the state has sufficient resources available for emergencies or unanticipated expenses.

Sentiment

The sentiment toward HB05394 appears to be cautiously supportive among fiscal conservatives who prioritize long-term financial health over immediate spending. The push for increased reserves is framed as a responsible fiscal measure that reflects a commitment to prudent budgeting. However, there may also be apprehensions among other legislators or constituents who prioritize immediate funding needs for programs that could be impacted by the increased reserve requirements.

Contention

Notable points of contention surrounding the bill may revolve around the balance between saving for the future versus spending on current needs. Discussions are likely to address whether the increase in the reserve fund is justified given the potential impacts on current appropriations and whether such a conservative fiscal strategy could undermine other critical state initiatives. Additionally, legislators might debate the effectiveness of having a larger reserve fund in preventing financial crises, weighing it against the necessity of responsive funding for immediate community and programmatic needs.