HI SB253

Director of Finance must submit a recommended state debt management policy to the legislature at least 20 days before the 2015 regular session of 2017, consistent with Government Finance Officers Association standards.

State debt management policy shall establish guidelines and restrictions on bond issuance, including purposes, types, limitations, maturity schedules, sale methods, consultant procurement, refunding policies, and disclosure practices.

Director of Finance must submit a debt affordability study to the legislature before each odd-numbered year regular session, analyzing whether projected debt service is affordable and compliant with debt management policy.

Debt affordability study must include 25-year debt service projections, debt service payment schedules, debt-to-revenue and debt-to-appropriations ratios, and assessment of impacts on operating programs.

Legislature is appropriated $100,000 for fiscal year 2015-2016 and $100,000 for fiscal year 2016-2017 to prepare the debt management policy and affordability study.