Connecticut House Bill HB05557

Connecticut 2011 Regular Session

• Introduced: 1/20/11
• Refer: 1/20/11

Caption

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

Impact

This bill is designed to address the state's fiscal health by mandating a thorough examination of its debt obligations, which could lead to more informed decision-making regarding the issuance of new long-term debt. Additionally, the committee will provide recommendations on the maximum amount of new debt that can be prudently authorized for the upcoming two fiscal years. This proactive approach is expected to enhance transparency and accountability in the state's financial management.

Summary

House Bill 05557 aims to establish a framework for the annual review of the state's general obligation debt. This legislative initiative is intended to provide greater oversight and management of the state's borrowing practices by requiring systematic evaluations of the size and affordability of its general obligation debt. The proposed review will be carried out by the newly formed Capital Debt Affordability Advisory Committee, which will be appointed by the Governor and legislative leaders.

Contention

While the bill proposes a structured method to review debt obligations, potential points of contention could arise regarding the extent of authority granted to the Capital Debt Affordability Advisory Committee. Some lawmakers may express concerns over the implications of committee recommendations on future borrowing and budgetary allocations. Furthermore, debates may emerge around the necessity of such a committee, versus existing structures that may already fulfill this purpose, weighing the benefits of increased oversight against possible bureaucratic redundancies.