Debt Affordability Committee Quietly Begins Work

The next meeting of CDAC is September 18 at 3 pm in the Treasury Building.

The Capital Debt Affordability Committee (CDAC) is required to submit to the Governor and the General Assembly each year an estimate of the maximum amount of new general obligation debt that prudently may be authorized for the next fiscal year.

The Committee is also charged with making a recommendation regarding additional funding for school construction.

MACo tracks the work of the Committee as it relates to capital spending by the State on projects that affect county governments.

At the first CDAC meeting of the year, Secretary Brinkley, staff from the Treasurer’s Office and the Office of the Comptroller, and members of the Committee heard reports on the status of the State’s General Obligation Bonds, Capital Leases, GARVEE Bonds, Maryland Stadium Authority bonds, Bay Restoration Bonds, and Consolidated Transportation Bonds.

The agenda was completed quickly and without much additional discussion. The next two meetings of the Committee will likely include more questions and deliberation.

From the meeting:

“The market for municipal bonds is excellent, especially for highly rated states like Maryland” –Christian Lund, Director of Debt Management, State Treasurer’s Office

“Revenues have been relatively stable for the Bay Restoration Fund” –Jag Khuman, Director, Maryland Water Quality Financing Administration

“In the prior 5 fiscal years, there was $1.8 billion new construction and $502 million in refunding” –June Hornick, Assistant Director of Debt Management, Maryland Department of Transportation

For more information see the September 6 CDAC Presentations.

For background see Capital Debt Affordability Committee Recommends Bond Authorization of $995 Million For FY 18.