State Bond Commission Run Rate Astounding

January 12, 2015

Sen. Frantz calls for restraint

Hartford, CT – State Senator Scott Frantz (R-Greenwich) released the following statement today re: Governor Malloy’s Bond Commission revelation concerning a soft bonding cap for the 2015 year.

“Given the large numbers of dollars involved in the agenda at today’s meeting of the Bond Commission, I felt it was important to at least get an idea of where the Administration might set its soft bond cap for this calendar year. Having exceeded the soft bond cap last fiscal year by $167 million, I felt even more strongly that the public should know if there is a number being considered in the context of the near record $655 million agenda today.

“While the Governor contended that it is too early to make a commitment, all taxpayers, citizens and legislators should be watching for this number and also a transportation related soft bond cap with a laser like focus. As a state, we are borrowing beyond our means already, and while most of us applaud improving our aging transportation infrastructure, we have to make sure we have a legitimate and sustainable funding source outside of borrowing.

“Bond proceeds should never be considered revenues to the state, and we must all remember that, despite historically low interest rates, future tax payers will have to provide the incremental tax revenues to the state to pay back the principle.”

Sen. Scott Frantz is a member of the Finance Revenue and Bonding Committee as well as the State Bond Commission.