The state House recently advanced legislation that would require a review of the state’s debt obligations and identify refinancing options in a report to the General Assembly.
Under the bill, the Pennsylvania Treasury would be required to identify and review all outstanding Commonwealth debt obligations, including those held by agencies, authorities, boards, commissions, and other state-authorized entities.
State entity chairmen with the power to issue debt, the secretary of the budget, and the auditor general would assist with the review.
A report would be written on the findings that includes options for refinancing any outstanding debt obligations to reduce the state’s costs. The report would be due to the General Assembly by June 30.
“The nation’s and state’s economy has taken a blow due to the coronavirus pandemic,” Rep. Tim O’Neal (R-Washington), who introduced the bill, said. “As we work to complete a state budget by June 30, we must explore all avenues to cut costs in order to balance the budget. One possible way is to refinance debt. My legislation will give us a better understanding of what debt the Commonwealth holds and where savings can be realized.”
House Bill 2418 bill now moves to the Senate for its consideration.