Day: August 15, 2011

State Roundup, August 15, 2011

Maryland get $28 million in federal funds to establish a health exchange for the uninsured; Franchot says special redistricting session shouldn’t be used to consider tax hike; government leaders, lobbyists head for MACO this week; DREAM Act petitioners ask judge to step down as McDonough lawyers up for fight; state tax holiday this week; former Del. Kenneth Webster dies; Prince George’s Council questions exec’s office proposed incentive fund; and Frederick County government cuts number of six-figure salaries.

Maryland close to hitting debt ceiling in 5 years

Maryland could be within $43 million of hitting its debt ceiling in fiscal year 2017, according to projections presented to the Capital Debt Affordability Committee on Friday. Maryland has a self-imposed limit on debt service of 8% of all revenues received. This means that only 8% of revenues in a given year can go toward principal and interest on state bonds.Currently, the state’s debt service payment is 6.9% of its revenues. By 2017, debt service is projected to be 7.8% of revenues. (By comparison, the interest on the federal debt this year is about 10% of total revenues.)

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