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 adopted, this amendment would replace articles in the state's constitution concerning the legislative powers related to borrowing. By setting a clear cap on the amount of debt that state entities can incur without public approval, the bill aims to strengthen the checks and balances involved in state financial management. This change would necessitate that any proposed debt above the specified threshold go through a rigorous process involving both legislative and public scrutiny, thereby promoting fiscal responsibility.
Bill S0725 proposes a constitutional amendment aimed at regulating the borrowing capabilities of state entities. Specifically, it seeks to prohibit any department or authority created by the state, as well as any corporation or quasi-public corporation, from incurring state debts exceeding fifty thousand dollars without prior approval from both the General Assembly and the public. This measure is intended to reinforce accountability and transparency in state financial obligations, ensuring that significant fiscal actions cannot be taken without the explicit consent of the voters.
Notable points of contention arise around the implications of this bill on state governance and financial flexibility. Proponents argue that it safeguards taxpayer interests by preventing state bodies from incurring significant debts without public oversight. Conversely, opponents may express concerns that this measure could hinder the state's ability to respond promptly to fiscal emergencies or unforeseen financial needs, particularly in times of economic stress when quick funding solutions may be essential.