Connecticut House Bill HB05048

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

If enacted, this bill would amend section 3-20 of the general statutes, which governs bond issuance in the state. The suspension of new allocations for general obligation bonds is expected to significantly impact funding sources for various projects. Only ongoing programs or statewide benefits would still qualify for funding during the moratorium. This shift in policy signifies a move towards tighter fiscal control and accountability in state financial management.

Summary

House Bill 5048 proposes a moratorium on the issuance of general obligation bonds of the state until January 1, 2014. The intent of this legislation is to suspend the allocation of such bonds to prevent funding for 'earmark' projects, which are often criticized for being unfocused and potentially wasteful. By halting the allocation of bonds, the bill aims to restrain state expenditure and ensure that any available funding prioritizes ongoing programs or projects that have a broader benefit to the state as a whole.

Contention

Discussions around HB 5048 may highlight divides over fiscal responsibility versus the need for state investment in local projects. Proponents of the bill argue that it will prevent inefficient spending and prioritize essential state functions, potentially garnering strong support from fiscal conservatives. However, opponents may express concerns that freezing bond issuance could hinder local development initiatives and stifle economic growth in various regions, particularly if those projects were critical to community needs and improvements. Ultimately, the contention lies in balancing fiscal restraint with the need for local investment.