Connecticut House Bill HB05475

Connecticut 2015 Regular Session

• Introduced: 1/16/15
• Refer: 1/16/15

Caption

An Act Concerning The Use Of Revenue From Bond Premiums.

Impact

By requiring that all revenue generated from bond premiums be counted as part of the state's budget, HB 05475 directly influences the state financial practices. This change aims to ensure that these revenues are allocated responsibly and transparently, especially in relation to managing the state's debt obligations. The bill’s focus on debt reduction could lead to a more structured approach in handling state finances, possibly providing a template for future financial legislation that emphasizes targeted revenue use.

Summary

House Bill 05475 aims to amend titles 3 and 13b of the general statutes to mandate that revenue from accrued premiums on general obligation bonds or special tax obligation bonds must be considered as revenue for state budgeting purposes. This bill explicitly restricts the usage of the premium revenue solely for debt reduction, effectively dictating how such funds can be employed within the state's financial framework. The intent of the legislation is to enhance fiscal responsibility regarding state debt management.

Contention

While the bill promotes more stringent fiscal management regarding bond revenue, it may also raise concerns about flexibility in budgeting. Critics could argue that such restrictions on bond premium revenues limit the state’s ability to utilize funds creatively in times of need or financial urgency. By locking these revenues into a specific use, such as debt reduction, there might be contention regarding other financial priorities that could benefit from this revenue, such as education or infrastructure projects.