Bonds; authorize issuance to assist Perry County in paying the costs of widening Cochran Road.
Impact
The bill establishes a special fund designated as the '2022 Perry County Cochran Road Widening Fund' within the State Treasury, managing funds separately from the General Fund of the state. This separation ensures that any unspent funds remain available for the project rather than reverting to the state’s general revenue pool. The payment of principal and interest on the bonds is guaranteed by the full faith and credit of the State of Mississippi, making them general obligations. If state revenues fall short, the State Treasurer is tasked with making up the difference from other non-designated funds, ensuring that bondholders are prioritized.
Summary
Senate Bill 3070 authorizes the issuance of state general obligation bonds to provide funding support for the widening of Cochran Road in Perry County, Mississippi. This legislation aims to assist local governance by providing needed financial resources to enhance infrastructure, a critical aspect for both local residents and regional connectivity. The total amount of bonds that can be issued under this act is capped at Two Million Six Hundred Thousand Dollars ($2,600,000.00), with provisions requiring the bonds to be redeemed within a timeframe not exceeding twenty-five years from the date of issuance.
Conclusion
Overall, SB3070 reflects the legislative intent to foster infrastructural development while ensuring fiscal responsibility towards bondholders. As infrastructure projects are critical to community development, how these funds are managed and the outcomes of such improvements will likely be the areas under scrutiny as the project progresses.
Contention
While the bill primarily aims to address infrastructure needs, there could be discussions regarding the allocation of state resources, particularly in relation to other counties or projects requiring similar funding. Given the nature of general obligation bonds, some may argue about the potential long-term financial implications for the state budget and the prioritization of funds which might otherwise be allocated to different sectors. Local governance may still wish to address broader community needs beyond just infrastructure, which could lead to debates on the focus of such funding.
Local governments capital improvements revolving loan program; revise definition of "capital improvements", extend repealer on MDA authority to use certain funds for expenses.