A bill that would curb spending increases for certain capital projects, and another to reduce borrowing, may be voted on by the full House Wednesday. The House Finance Committee approved H.B. 2419 and H.B. 2420 yesterday as part of House Republicans’ efforts to reduce the state’s $1.6 billion debt obligation.
H.B. 2419 would limit the annual amount the Commonwealth can spend on capital projects starting in the 2015-16 fiscal year for new projects. The bill impacts the Redevelopment Assistance Capital Projects program (RACP), Flood Control Projects, Highway Projects, Public Improvement Projects, and Transportation Assistance Projects.
H.B. 2420 builds upon recent legislation to lower the RACP debt ceiling and would further reduce RACP debt ceiling by an additional $500,000,000 over several years.
Earlier this session, legislation passed to lower the statutory debt ceiling on RACP by $600 million. We’ll be watching for what happens on Wednesday. It’s likely to succeed in the Republican-dominated House. The real question is whether the Senate will pick it up in these final legislative session days. One thing is certain lately: every year, there are fewer RACP dollars to go around.