Public finance law includes state and federal laws and regulations governing the financing of public organizations and projects. For example, public finance laws and regulations govern the sale and purchase of bonds to build or improve schools, parks, roads, airports, cultural facilities, recreational facilities, entertainment venues (sports arenas), and other public works projects.

Bonds are debts issued by governments (the debtor), for example, to purchasers of the bonds (the creditors), with a promise to pay the bondholder interest (a coupon) and repay the principal amount upon a certain date (maturity date)—similar to an IOU or loan agreement. Bonds are securities that can often be traded (bought and sold) to and from others on the secondary market.

In Connecticut, public finance law is governed by both state statutes and federal regulations. The state laws regulate the issuance of bonds by state and local governments for the purpose of funding public projects such as schools, parks, roads, and other infrastructure. These bonds are essentially loans made by investors to the government, with the promise that the government will pay back the principal with interest by a certain date. The Connecticut General Statutes, particularly Title 7 related to Municipal Finance, and Title 10 related to Education, outline the procedures and requirements for issuing bonds. Additionally, the State Treasurer's Office plays a significant role in managing the state's debt and financing strategies. On the federal level, the Internal Revenue Service (IRS) sets regulations that affect the tax-exempt status of municipal bonds, which is a significant aspect of public finance. The Securities and Exchange Commission (SEC) also has rules regarding the trading of these securities on the secondary market. It is important for entities involved in public finance to comply with both state and federal laws to ensure the legality and fiscal responsibility of their financing activities.