The State’s Capital Debt Affordability Committee (CDAC) chaired by State Treasurer Nancy Kopp, approved a recommendation during its meeting on October 17th to set the State’s bond authorization at $1,095 million as the maximum amount of general obligation bonds to be authorized for fiscal year 2021, and for planning purposes, $10 million annual increases (roughly 1% per year) in future fiscal years. The vote to approve the recommendation was 3-2, with Treasurer Kopp and Comptroller Franchot voting against.
Department of Budget and Management Secretary Brinkley raised the point that although CDAC had recommended $995 million for FY 20, the legislature increased the authorization to $1,095 million and recommended keeping the authorization at this level. Additionally, the Committee unanimously voted to recommend a limit of $32 million for new academic facilities bonds for the University System of Maryland for fiscal year 2021.
CDAC, created pursuant to Section 8-104, et seq., of the State Finance and Procurement Article, 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 recommendation will be forwarded on to the Governor and General Assembly for their consideration.
For more information, see the October 17th meeting materials.