Bonds; authorize issuance to assist Prentiss County with road and bridge improvements.
Impact
The bill enables the state to facilitate significant infrastructure improvements at the local level, which may contribute to enhanced transportation and public safety in the affected areas. By establishing a dedicated fund, it ensures that unused funds will not lapse into the State General Fund and will be preserved for this specific infrastructure project. This targeted financial approach is intended to empower local government actions toward managing and improving infrastructure effectively.
Summary
House Bill 430 is a legislative proposal aimed at assisting Prentiss County, Mississippi, through the issuance of state general obligation bonds. The primary objective of the bill is to provide financial support for improvements to roads and bridges specifically in Supervisors District 3 of Prentiss County. The proposed legislation outlines the process for the State Bond Commission to issue bonds, which will be funded by a special account dedicated to this purpose. Under the bill, a maximum amount of $300,000 can be borrowed through these bonds to cover associated costs, with provisions allowing the commission to determine the specific terms of issuance.
Contention
While the bill appears to garner support from local leadership focused on improving essential infrastructure, there may be concerns regarding state fiscal responsibility and the long-term implications of increased local debts. Additionally, the ability of the State Bond Commission to determine the terms of these bonds may prompt discussions about transparency and accountability in how bonding initiatives are managed and executed.
Notable_points
The bill takes effect on July 1, 2023, and includes provisions for ensuring that the bonds issued are general obligations of the state, thus ensuring that their payment is backed by the full faith and credit of Mississippi. Furthermore, the bonds, along with any earned interest, will be exempt from state taxes, making them a more attractive investment for various entities, including fiduciaries and governmental bodies.