CDAC Recommends Bond Authorization of $1,095 Million For FY 22

The State’s Capital Debt Affordability Committee (CDAC) chaired by State Treasurer Nancy Kopp, approved a recommendation during its meeting on October 19 to hold the State’s bond authorization at $1,095 million as the maximum amount of general obligation (GO) bonds to be authorized for FY22, and for planning purposes, $10 million annual increases (roughly 1% per year) in future fiscal years.

This is the same amount authorized for fiscal 2021, while maintaining an annual 1% increase through the planning period. This recommended level of GO bond authorizations for the five-year forecast period beginning in FY 22 is below both the level recommended by the Spending Affordability Committee (SAC) in December 2019 as well as the amount currently programmed in the 2020 Capital Improvement Program (CIP). The vote to approve the recommendation was 3-2, with Treasurer Kopp and Comptroller Franchot voting against.

Additionally, the Committee unanimously voted to recommend a limit of $30 million for new academic facilities bonds for the University System of Maryland for FY22.

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 19 meeting materials.

Stay tuned to Conduit Street for more information.