An Act Concerning Temporary Borrowing By The State Treasurer.
Impact
The provisions include a requirement that all temporary borrowing must mature no later than two years from issuance or at the end of the biennium during which the obligations are issued, whichever is longer. This is a significant modification that emphasizes fiscal responsibility and ensures that the state does not engage in prolonged borrowing practices that could lead to financial instability. Additionally, upon the governor's approval of any borrowing, there will be a requirement to inform specific legislative committees overseeing finance, revenue, and bonding.
Summary
House Bill 05160, titled 'An Act Concerning Temporary Borrowing By The State Treasurer,' seeks to amend the existing legislation around the borrowing powers of the state treasurer. The primary focus of this bill is to set clearer parameters regarding the process for temporary borrowing. Specifically, it mandates that any borrowing undertaken must be limited to the amount approved by the governor, ensuring that there is oversight by the executive branch in financial matters handled by the treasurer.
Contention
Debate surrounding HB 05160 may revolve around concerns regarding oversight and the balance of power between the state's executive and legislative branches. Some may argue that requiring governor approval for each borrowing limit could slow down the process of obtaining necessary funds, potentially impacting the state's financial agility. Conversely, proponents will likely emphasize the importance of accountability in state borrowing, arguing that the proposed changes are crucial for maintaining stability in the state’s fiscal policy and ensuring that borrowing remains a carefully monitored action.
Notable_points
The bill aims not only to clarify the existing process but to reinforce a structured framework for the state's borrowing activities. By including the stipulation of notifying legislative committees, the bill further promotes transparency in governmental financial operations. Overall, HB 05160 is poised to strengthen the controls around the state's borrowing practices, ultimately protecting the financial interests of the state and its residents.
An Act Authorizing And Adjusting Bonds Of The State And Concerning Provisions Related To State And Municipal Tax Administration, General Government And School Building Projects.