Authorizing the county of Plymouth to issue pension obligation bonds or notes
The approval of this bill would significantly affect state laws governing county finances and obligations, particularly in relation to pension funding. By allowing Plymouth County to issue these pensions obligation bonds, the county would be given a tool to manage its retirement funding more efficiently. This would require a two-thirds majority vote by the county's advisory board on expenditures each time bonds are issued, ensuring that there is substantial local consensus surrounding such financial decisions.
Bill S1316, titled 'An Act authorizing the county of Plymouth to issue pension obligation bonds or notes', seeks to provide the county with a mechanism to fund its unfunded pension liabilities through the issuance of bonds or notes. This legislative measure permits Plymouth County to issue bonds for the purpose of covering all or a portion of its obligation to the Plymouth County Contributory Retirement System. The issuance is capped at an amount sufficient to extinguish the sunset of the unfunded pension liability, including necessary issuance costs and associated expenses.
Notable points of contention surrounding S1316 may stem from concerns over fiscal responsibility and the implications of taking on new debt, especially in the context of taxpayer burden. Critics might argue that while the issuance of these bonds could provide short-term relief, it may lead to long-term financial obligations that could strain the county's budget. Furthermore, the need for the advisory board to recommend each issuance could introduce further political debate and disagreements over financial priorities within the county.