Connecticut Gov. M. Jodi Rell yesterday called for an expiration date on unused bond authorizations and for new restrictions on the state’s budget reserve fund. The measures will be included in her budget proposal to be presented today before the General Assembly.
The proposal would cause the expiration of specific projects that were authorized for funding through general obligation bonds if that amount does not receive an allocation by the state board that approves bond financings.
“Any bonding item that languishes for five years without ever being approved by the state Bond Commission will be automatically dropped from the list of authorized projects,” Rell said in a press release. “This will ensure that Connecticut borrows only [for] the most urgently needed projects and will restore our credit rating to a robust status.”
Rell will also propose new safeguards on the budget reserve fund. If the state runs a budget surplus in any given fiscal year and the reserve fund’s balance is less than 10% of general appropriations that year, then the proposal would require the comptroller to deposit at least 50% of surpluses into the fund.