The Capital Debt Affordability Committee voted today for the state to maintain the current debt allowance for capital projects next fiscal year.
The current fiscal year debt level is $1.75B, constituting a $500M increase over the debt service amount approved for the prior fiscal year, FY24. The state believes maintaining this current debt level will enable the state to continue making progress while cautiously facing a precarious budget outlook. Additionally, the Treasurer’s Office estimated that the state’s bond issuances will total $1.39B in fiscal year 2025, which ends in June, and about $1.54B in fiscal year 2026, while total debt service is projected to reach $2.01B for fiscal year 2025 and $1.98B for the following fiscal year. The state’s debt service could hit $2.76B by fiscal year 2034, according to projections from the State Treasurer’s Office.
Budget Secretary Helene Grady reaffirmed the states focus for capital projects will continue in:
- housing affordability
- neighborhood revitalization
- economic development
- school construction
- higher education
- health care facility improvements
- upgrades and replacements to state government facilities
She reiterated specifically that the state has significant needs for school projects ranging from pre-K through grade 12 with major construction needs and that the state should continue to make progress toward improving its public schools.
