The state of
New York is fast approaching its legal borrowing limit, state comptroller Thomas DiNapoli said today (
via Capitol Confidential).
In an analysis of the state's debt burden, DiNapoli projects the state will have just $509 million of borrowing capacity by the end of SFY 2013-14.
Albany enacted a debt ceiling in 2000, at 4 percent of New York State Personal Income.
New York’s state-funded debt totaled $63.3 billion this year. DiNapoli says weak economic conditions have reduced personal income growth, which in turn has driven down available borrowing capacity.
DiNapoli proposes raising all state-funded debt to 5 percent of personal income, with a nine-year phase-in of the cap and a constitutional amendment to restrict the use of long-term debt to capital purposes.
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