Connecticut Senate Bill SB00271

Connecticut 2011 Regular Session

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

Caption

An Act Concerning A State Policy On The Amount Of Bonded Indebtedness.

Impact

If enacted, this bill could significantly impact the management of the state's finances by limiting how much debt can be raised through bonds for public projects. The intent is to safeguard the state’s finances by preventing excessive borrowing. The requirement for a two-thirds majority approval in both legislative chambers for any bonding that exceeds the established cap is a critical aspect aimed at ensuring more structured and measured fiscal decisions.

Summary

SB00271, titled 'An Act Concerning A State Policy On The Amount Of Bonded Indebtedness', proposes the establishment of a fiscal policy that aims to regulate the state’s bonding debt. The crux of the bill is to cap debt service expenditures to ten percent of the state’s General Fund budget. This measure is intended to ensure that the state does not exceed a sustainable level of debt which could impact financial stability and the ability to fund essential services.

Contention

There may be points of contention surrounding SB00271 regarding the flexibility of state funding for various projects. Advocates may argue that a strict cap on debt service could hinder the state’s capacity to respond to urgent financial needs or investment opportunities. Conversely, opponents may view the requirement for a legislative supermajority as a necessary check to prevent irresponsible fiscal practices that could jeopardize future budgets.