The Virginia General Assembly is weighing legislation that will require more disclosure from local issuers on the bonds they issue. It also is considering the authorization of almost $4 billion of general obligation bonds for transportation projects.
One bill introduced in the House of Delegates would provide more information to citizens about the total cost of bond issuance they vote on, while a separate bill requires municipalities to include more information about their outstanding debt in their budgets.
A bill sponsored by Rep. Robert Marshall, R-Manassas, would require governments to hold a public hearing and publish notices in a local newspaper with the estimated years to amortization and total debt service cost before issuing any non-voter-approved bonds. The bill was assigned to a subcommittee on Tuesday.
Another municipal disclosure bill sponsored by Harry Purkey, R-Virginia Beach, would require local government budgets to include a statement of current and proposed total debt, excluding public utility bonds, given on a per capita basis.
Marshall also introduced a measure authorizing the state to issue up to $3.96 billion of GOs for transportation capital projects. Voters would need to approve the bonds in November.
Another bill, introduced by Sen. Stephen D. Newman, R-Forest, would require at least 50% of transportation bonds allocated in 2007 to be issued for new road or highway construction projects. In 2007, the legislature authorized $3 billion of transportation bonds, but they have not been issued due to a lack of funding.
During last year’s governor race, Gov. Robert McDonnell emphasized the need to issue the bonds to improve Virginia’s transportation infrastructure.
