Legislation sponsored by Assemblyman
"The recent reports about our mounting state debt are disconcerting to say the least," said Singleton (D-
"Debt affordability can't be the elephant in the room when it comes to discussions about our fiscal future," said Prieto (D-
Underscoring the need for a better picture of
The bill (A-961) would require the state to include a state debt affordability analysis in the annual State Debt Report in order to provide a clear, data-driven framework for the executive branch and the legislature to evaluate and establish priorities for legislation that may impact the amount of state debt during future fiscal years.
"We need to take a step back, just like any responsible family would, and ask ourselves how much debt we can realistically afford to take on," said Burzichelli (D-
"Investors have taken notice of our mounting debt, with Moody's downgrading our outlook to negative late last year," said Schaer (D-
Under the bill, the State Debt Report, which is submitted to the
The analysis would include: (a) An estimate of revenues available for the next 10 fiscal years to pay debt service on the debt listed in annual State Debt Report, including state general revenues plus any revenues specifically pledged to pay debt service; (b) An estimate of additional debt issuance for the next 10 fiscal years for the state's existing borrowing programs; (c) A schedule of the annual debt service requirements, including principal and interest allocation, on outstanding state debt and an estimate of the annual debt service requirements on the additional debt projected for existing borrowing programs for each of the next 10 fiscal years; (d) The calculations and listing of pertinent debt ratios, including, but not limited to, debt service to state revenues available to pay debt service, debt to state per capita personal income, and debt per capita for the state's net tax-supported debt; (e) The estimated debt capacity available over the next 10 fiscal years benchmarked to various debt ratios of debt service to state revenue exceeding current actual percentages; (f) A comparison of the
Any state agency, independent authority, or other entity issuing debt secured by state revenue, or assisting in the issuing of that debt, must also provide information determined necessary by the commission in order to complete the debt affordability analysis and recommendations on affordability of additional debt.
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