Debt Affordability Committee Starts Work Toward Setting Spending Limits

The Capital Debt Affordability Committee holds the first of three annual meetings in the process of recommending a level of capital debt for the State.

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. In the past, CDAC has been required to submit its final report by October 1. Due to the passage of SB 85 in the 2019 Legislative Session, the date has been extended to October 20, giving the Committee more time to review the recommendations.

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, Treasurer Kopp, Comptroller Franchot, and members of the Committee heard reports on the status of General Obligation (GO) Bond Status, Debt Projections, the Impact of Federal Tax Cuts, General Fund Estimates, 2019 Assessments & Taxation Base Revenue Estimate, Capital Program, and Public School Construction Program.
The agenda was completed quickly without much additional discussion. The next CDAC meeting will be Thursday, October 10. The presentations on the agenda are: Transportation Bonds, Garvee Bonds, MD Stadium Bonds, Bay Restoration Bonds, Capital Leases, and the Debt of the Higher Education Institutions.