Connecticut House Bill HB05687

Connecticut 2013 Regular Session

• Introduced: 1/23/13
• Refer: 1/23/13

Caption

An Act Concerning State Surplus Funds And Federal Government Loans.

Impact

By enabling the use of surplus state funds for paying off federal loans, HB 05687 aims to alleviate the financial burden on the state's budget while ensuring the continuity of unemployment assistance. The bill is designed to provide a mechanism that prevents future accumulation of state debt related to federal loans, thus enhancing the overall fiscal stability of the state. This could potentially lead to a more robust state budgetary health in the long term, making it easier for the state to manage its financial obligations.

Summary

House Bill 05687, titled 'An Act Concerning State Surplus Funds And Federal Government Loans,' proposes amendments to existing general statutes to allow the state to utilize its surplus funds for repaying federal loans procured to cover the costs associated with unemployment benefits. This bill is significantly focused on addressing fiscal responsibilities regarding unemployment funding, particularly during economic downturns when federal assistance is critical for supporting unemployed individuals.

Contention

Notably, while proponents of the bill argue that utilizing surplus funds for loan repayment is a prudent fiscal strategy, critics may raise concerns about the implications of diverting these funds from other potential uses. Some may argue that state surplus funds could be allocated toward more immediate community needs or programs rather than being used solely for debt repayment. The discussions surrounding this bill may reflect a broader debate about the prioritization of state resources and the optimal management of funds during periods of economic uncertainty.