Bill > S1671

This bill establishes a commission to study and recommend best practices for how the Commonwealth and its municipalities borrow money. The commission will examine current borrowing standards, look at successful strategies used in other states, and identify ways to improve the credit rating and reduce borrowing costs for both the state and local governments. Specific areas of review include centralizing borrowing by public agencies under the state treasurer, improving the state's cash flow by pooling operating and stabilization funds (without appropriating stabilization funds), and creating a Massachusetts Local Government Commission to review local financial reports and offer guidance. The commission will be composed of 14 members, including the state treasurer (who will chair it), the secretary of administration and finance, the state comptroller, the state auditor, chairs of relevant legislative committees, minority party appointees, and representatives from the Massachusetts Municipal Association and municipalities. The commission is required to submit a report with its findings and recommendations to the legislature and relevant committees within 12 months of the bill's effective date.