HI SR71

Department of Budget and Finance is requested to establish a state debt management policy addressing purposes, types, and limitations of debt issuance, maturity schedules, sale methods, consultant procurement, refunding policies, and disclosure practices.

State debt management policy must be submitted to the Senate no later than twenty days before the 2017 Regular Session convenes.

Department of Budget and Finance must submit a debt affordability study to the Senate twenty days before each odd-numbered year regular session, covering a twenty-five-fiscal-year period.

Debt affordability study must include projected annual debt service appropriations, payment schedules, debt-to-revenue and debt-to-appropriation ratios, revenue adequacy assessments, and analysis of impacts on operating programs.

Study must assess whether annual debt service obligations are affordable and identify any non-compliance with the state debt management policy.