JOINT RESOLUTION TO APPROVE AND PUBLISH AND SUBMIT TO THE ELECTORS A PROPOSITION OF AMENDMENT TO THE CONSTITUTION -- OF THE LEGISLATIVE POWER (Proposes a state constitutional amendment that no department or other entity created by the state would have poser to incur debt in excess of $ 50,000, without express approval from the legislature and voters.)
If this amendment is passed, it would replace existing provisions in Article VI of the Rhode Island Constitution, specifically older clauses that allowed certain governmental bodies and quasi-public entities to borrow without direct voter consent. Any borrowing above the threshold set forth by this bill would require a transparent process of legislative and electoral approval, which proponents argue will lead to more prudent fiscal management and mitigate unnecessary debt during fiscal planning.
Bill S2570 proposes a joint resolution to amend the Rhode Island Constitution concerning the borrowing powers of the state. The core provision of this bill stipulates that no department or entity created by the state can incur debts exceeding $50,000 without the express approval of both the General Assembly and the voters. This amendment is designed to ensure greater accountability and control over state borrowings, especially regarding any financial obligations that may carry a moral implication on the state's creditworthiness.
The bill sits at the intersection of state governance and public accountability, raising significant debate among legislators. Supporters contend that this safeguard will protect citizens from potential mismanagement of public funds, thereby fostering trust in state financial practices. Conversely, opponents may express concerns that this could impede timely financial decision-making, especially during emergencies requiring rapid financial responses. Therefore, the passage of S2570 could represent a pivotal shift in how financial governance is approached within the state.