Senate Institutions panel reviews H.494 capital bill, cash fund and reallocation rules

John Bray, legislative counsel with the Office of Legislative Council, told the Senate Institutions Committee on April 8 that H.494 is a two-year capital bill that “authorizes bonding” and lists the particular projects the state would fund, as well as other sources the state may draw on to support those projects.

Bray said the bill pairs bonding authority with line-item appropriations and allows the legislature to use prior-year reallocations and cash held in the capital cash fund. “This is a 2 year bill that sets out both the projects themselves and the bonding plus, if there’s other sources from which you’re drawing money,” he said.

The nut graf: The committee’s discussion centered on how the capital bill blends traditional bond authority with a newer cash fund structure and reallocations of older capital funds, and on how the bill’s language and line items give agencies flexibility — and in some places additional direction — about which projects to pursue and how to use available money.

Most important facts first: H.494 would create or confirm general obligation bonding authority and specify projects to receive that bonding. It also lists amounts to be appropriated in fiscal year 2026…