Budget Amendment ID: FY2017-S4-318-R1

Redraft GOV 318

Commission to Examine Best Borrowing Practices

Mr. Joyce moved that the proposed new text be amended by inserting, after section 62, the following section:-

“SECTION 62A. (a) There shall be a commission to study and issue a report on the bonding and borrowing practices of the commonwealth and its municipalities. The commission shall identify initiatives to improve financial management and credit ratings and to reduce bonding and borrowing costs. The commission shall review best practices in other jurisdictions and issue recommendations to achieve best practices. The report shall include, but not be limited to, an analysis of: (i) centralizing in the state treasurer’s office all borrowing by public agencies who may issue bonds with a state guaranty; (ii) reducing cash flow borrowing by permitting inter-fund borrowing including, but not limited to, the pooling of operating and stabilization cash to enhance the commonwealth’s overall working cash position if the borrowing will not result in a net reduction of stabilization funds; (iii) creating a standing committee or commission to provide increased professional resources, oversight and transparency to local government finances; (iv) procurement and issuance practices by municipalities and state agencies of bonds or notes maturing later than 3 years; (v) the debt management-related policies of state agencies and municipalities; and (vi) establishing a municipal bond bank.

(b) The commission shall consist of the following members or their designees: the state treasurer, who shall serve as chair; the secretary of administration and finance; the state comptroller; the state auditor; the senior deputy commissioner of local services; the chairs of the senate and house committees on bonding, capital expenditures and state assets; the minority leaders of the senate and house of representatives; 2 members to be appointed by the capital debt affordability committee, established in section 60B of chapter 29 of the General Laws and 4 members to be appointed by the executive committee of the advisory commission on local government established in section 62 of chapter 3 of the General Laws.

(c) The commission shall file a report of its findings and recommendations with the clerks of the senate and house of representatives and the senate and house committees on bonding, capital expenditures and state assets not later than July 1, 2017.”