Connecticut Senate Bill SB00083

Connecticut 2022 Regular Session

• Introduced: 2/15/22
• Refer: 2/15/22

Caption

An Act Adjusting The Bond Allocation Cap.

Impact

If enacted, this bill would have significant implications on how the state manages its bond allocations. By tying the cap to actual tax receipts, the state could adjust its borrowing capabilities in accordance with its revenue trends, potentially enhancing fiscal responsibility. This could lead to a more sustainable financial approach, allowing for flexibility in funding essential state projects while ensuring that expenditures do not exceed income.

Summary

SB00083, titled 'An Act Adjusting The Bond Allocation Cap', proposes adjustments to the current bond allocation cap within the state’s financial statutes. The bill aims to change the existing cap from a flat limit of two billion dollars per calendar year to a new cap calculated as one-fifteenth of the General Fund tax receipts from the previous fiscal year. This shift is anticipated to create a more dynamic and responsive bond allocation system, better aligned with the state’s financial performance during the preceding year.

Contention

The adjustment of the bond allocation cap has likely generated discussions around the adequacy of the proposed formula and its potential effects on state budgeting and project funding. Proponents might argue that linking the cap to tax receipts ensures that the state only borrows what it can afford, while opponents could raise concerns about whether this approach might hinder necessary funding for critical projects during times of lower tax collection.