Bill would let city councils spend budget surpluses on sustainable investments

Automatic summary, not yet reviewed

1. The bill would amend the sixteenth additional provision of the consolidated Local Government Finance Law to define what counts as a financially sustainable investment, so that budget surpluses could be spent on investments.
2. It proposes considering sustainable those investments that foster long-term economic growth, listing spending programs that include housing, water, waste, social services, employment, education, culture, sports, transport or roads, among others.
3. The investment must not undermine the local council's financial sustainability during its useful life, and it must generate revenue covering its maintenance costs or reduce other expenses.
4. Each investment would require an economic report signed by the president of the local corporation, with annual reporting to the full council. In addition, investments made with the 2012 and 2013 surpluses would not count toward the 2014 deficit.

Who it affects

• City councils and other local entities with a budget surplus.: They could spend the surplus if they meet the proposed requirements.
• Residents of municipalities, the final beneficiaries of investments in services and public works.: They would benefit from investments in their municipality.
• Presidents of local corporations, who would have to sign the economic report for each investment.: A new paperwork duty if the bill is passed.

Words worth knowing

Superávit (surplus)

When a budget's revenue exceeds its spending, that is, money left over.

Corporación local (local corporation)

The official name for the city council and other entities that govern a municipality.

Vida útil (useful life)

The period during which an investment, such as a public work or facility, can be used.

Disposición adicional (additional provision)

A part of a law that adds supplementary rules to the main articles.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries