Connecticut House Bill HB05046

Connecticut 2012 Regular Session

• Introduced: 2/14/12
• Refer: 2/14/12

Caption

An Act Concerning A Moratorium On The Issuance Of General Obligation Bonds Of The State.

Impact

The proposed moratorium will specifically affect state policies regarding debt issuance and financing of various programs. By suspending the issuance of general obligation bonds, the state aims to prevent excessive borrowing for projects that are not essential or beneficial overall. This may impact local projects that depend on state funding and require bond allocations, potentially leading to delays in infrastructure development and community enhancement initiatives.

Summary

House Bill 05046 seeks to implement a moratorium on the issuance of general obligation bonds by the state until January 1, 2014. The purpose of this moratorium is to disallow funding for any 'earmark' projects during this period, while still allowing allocations for ongoing projects or those that provide benefits to the entire state. This legislative measure is introduced to tighten the financial controls over the issuance of bonds and to ensure that state funding is managed more prudently during economic challenges.

Contention

The bill has the potential to generate discussions and concerns around state funding priorities. Supporters may argue that the moratorium is crucial for fiscal responsibility, especially in times of budget constraints. Conversely, opponents could raise issues about the negative implications of halting bond issuance on local economies and essential services. Stakeholders could express concern that the moratorium may lead to a lack of resources for critical state and local projects, affecting overall economic development.