Tennessee residents will have an opportunity to offer input on the State Funding Board’s revised debt management policy during a meeting at the State Capitol Wednesday, Aug. 24, officials with the Office of the Tennessee Comptroller of the Treasury announced in a release Monday.
Last year, the board agreed to require all governments in Tennessee to adopt debt management policies by Dec. 31. In addition to setting minimum standards for governments to follow, the board encouraged government entities adhere to four guiding principles while developing their policies:
1.) Debt transactions should be clearly understood by the decision-makers
2.) Citizens should be able to get clear explanations about the transactions
3.) Steps should be taken to avoid conflicts of interest among the parties involved in the transactions
4.) Costs and risks associated with the transactions should be clearly disclosed
The board has a policy in place for general obligation debt issued by the state. However, in light of the new requirements, the board plans to update its own policy, reinforcing its commitment to adhering to those four guiding principles.
“Since we are asking other governments to create or revise their policies, it seems only fair that we undertake the same sort of process on the state level,” Comptroller Justin P. Wilson, who serves as secretary of the State Funding Board, said in a release. “Like many governments, we realized that our policy had served us well but was ready for review, especially in the current market environment. And I believe the changes in our revised draft policy represent an improvement over what we have now.”
The State Funding Board meeting is scheduled for 11 a.m. Wednesday in the Executive Conference Room on the ground floor of the State Capitol.
The revised draft policy is available online at: http://www.comptroller1.state.tn.us/sl/DebtManagement.asp