HB1113
An Act For The Office Of The Treasurer Of State - General Obligation Bonds Appropriation For The 2025-2026 Fiscal Year.
AI-Generated Summary
This bill, House Bill 1113 of the 95th General Assembly of Arkansas, makes appropriations for the fiscal year ending June 30, 2026. It provides funds for the Office of the Treasurer of State to cover debt service requirements for two series of general obligation bonds. Specifically, it allocates $42,000,000 for College Savings and Higher Education General Obligation Bonds, with $10,000,000 for refunds/reimbursements and $32,000,000 for debt service. Additionally, it appropriates $43,000,000 for State Water, Waste Disposal, and Pollution Abatement General Obligation Bonds, with $15,000,000 for refunds/reimbursements and $28,000,000 for debt service. The bill includes a transfer provision allowing the State Treasurer to move funds from the Refunds/Reimbursements line item to the Debt Service line item if the initial appropriation is insufficient. It also mandates compliance with various state fiscal control laws and states the legislative intent is for funds to be disbursed in accordance with stated reasons for adoption. An emergency clause declares the act necessary for the immediate preservation of public peace, health, and safety, with an effective date of July 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are the holders of the State of Arkansas College Savings General Obligation Bonds and the State of Arkansas Higher Education General Obligation Bonds, as well as the holders of the State Water, Waste Disposal, and Pollution Abatement General Obligation Bonds. These bondholders will receive their scheduled principal and interest payments, ensuring the financial obligations of the state for these specific bond issuances are met. Indirectly, entities and individuals who have benefited from projects funded by these bonds, such as students and educational institutions supported by higher education bonds, or communities and the environment improved by water and waste disposal projects, will continue to see the ongoing positive effects of those investments. The Office of the Treasurer of State is also a direct beneficiary, as it is empowered and funded to fulfill its duty of managing and repaying these state debts.
Who Might Suffer?
This bill is primarily an appropriation for debt service, meaning it is designed to meet existing financial obligations. Therefore, there are no direct parties explicitly identified as being negatively impacted by the passage of this bill itself. However, any mechanism that diverts funds from other potential uses to meet debt obligations could be seen as indirectly impacting other state programs or services that might otherwise receive those funds. Furthermore, if the state's financial condition were to deteriorate significantly to a point where these appropriations were insufficient and further borrowing or revenue increases were necessary, then the general populace or future taxpayers could face increased financial burdens.