Connecticut Senate Bill SB00570

Connecticut 2013 Regular Session

• Introduced: 1/24/13
• Refer: 1/24/13

Caption

An Act Concerning The Use Of Bond Proceeds.

Impact

The bill would have a significant impact on state financial management practices, enhancing clarity and control over the use of bond proceeds. By mandating that these funds be used only for their intended programs or projects, the bill is set to increase transparency and prevent possible misuse of funds that could arise from applying them to general budgetary needs. This measure may also help in building public trust in the state's fiscal responsibility and its management of debt financing.

Summary

Senate Bill 570, introduced by Senator Frantz, seeks to amend section 3-17 of the general statutes to stipulate that all proceeds from the issuance of state bonds should be held separately and utilized exclusively for specific programs or projects that have received approval from the State Bond Commission. This legislative change aims to reinforce the accountability and targeted use of state bond proceeds, ensuring they serve their designated purpose rather than being diverted for general government expenditures.

Contention

While the bill generally garners support for its focus on financial integrity, some critics may argue that it could restrict the flexibility of state government in responding to unforeseen budgetary needs. There may be concerns that the stringent controls could limit the ability of state officials to allocate funds dynamically in response to urgent issues, thereby potentially hindering effective governance during times of financial uncertainty. As discussions proceed, stakeholders may raise points about balancing fiscal responsibility with necessary administrative flexibility.