N.Y. state borrowing ability shrinks to $726 million

By Joan Gralla | Reuters – 25 mins ago...
Tue, Oct 18, 2011

NEW YORK (Reuters) - New York state's ability to borrow under its outstanding debt cap will shrink to $726 million in fiscal 2014 from $3 billion in the current fiscal year, the state Budget Division said on Monday.

In 2000, the state enacted a law that limits selling state-supported debt to capital purposes, with a maximum term of 30 years. Further, the amount of new state-supported debt is restricted to 4 percent of personal income and debt service costs are limited to 5 percent of all funds receipts. The last two limits are being phased in.

"Measures addressing capital spending priorities, debt financing practices, and the inherent volatility of personal income as a basis for long-term planning may be considered in order to stay within the statutory limitations," the budget division said.

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