On October 1, the Capital Debt Affordability Committee (CDAC) met and approved an increase in the state’s general obligation bond authorization for an additional $150 M in FY 2014.
Yesterday, the Committee met again to clarify that, for planning purposes, the Department of Budget and Management would include an increase of $150 M to each year, from FY 2015-2018, in its general obligation authorization assumptions to be included in the Committee’s 2012 Annual Report. The Committee approved use of the increased figure for the four years up to 2018. With the increase, the new assumption for FY 2015 general obligation debt is $1.085 billion.
The Secretary of Budget and Management explained that the assumptions are projections that are used for state agencies to use for long-term planning. The full chart of assumptions shared at the hearing project the amount of general obligation debt that the state will take each year until 2022. The projections, which are subject to change, show that the state may be able to take as much as $1.36 billion capital debt in 2022, while remaining within its own debt limit guidelines.
The State Comptroller was the sole vote against the planning proposal, calling the meeting a “do-over” such as he had never seen. The State Treasurer and Secretary of the Department of Budget and Management expressed that the meeting followed processes used during their many years of service on the Committee.
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