Connecticut House Bill HB06562

Connecticut 2011 Regular Session

• Introduced: 3/9/11
• Refer: 3/9/11

Caption

An Act Establishing The Capital Debt Affordability Advisory Committee.

Impact

The formation of this committee will have significant implications for state laws concerning public finance. By providing expert guidance on bond issuance, the committee is expected to help streamline the state's debt management practices and improve transparency in how debt levels are set and managed. The annual reports from the committee will facilitate informed decision-making by lawmakers, potentially leading to more responsible debt levels and supporting economic activities funded through state bonds.

Summary

House Bill 06562 establishes the Capital Debt Affordability Advisory Committee, tasked with assessing the size and affordability of the state's general obligation debt. The committee's primary responsibility is to review the state's debt situation and provide annual recommendations to the State Bond Commission regarding the maximum amount of new long-term general obligation debt that can be prudently authorized for the upcoming two fiscal years. This process aims to ensure sound fiscal management and long-term financial sustainability for the state.

Contention

While proponents of the bill argue that it centralizes expertise in evaluating the state's debt situation, some critics may raise concerns about the potential for political influence over the committee's recommendations. Membership includes appointees from various political leaders, which could lead to debates over the impartiality of the committee's findings and recommendations. Additionally, there may be concerns over the balance between public spending needs and maintaining a sustainable debt level, as the committee's advice could directly affect future government financial decisions.