Tag: capital debt
Staff tells legislators to keep current lid on state debt
The legislature’s fiscal staff told lawmakers Thursday that they should not follow an O’Malley administration proposal to increase Maryland’s authorized debt by $375 million over the next five years.
The staff said this is one way to reduce debt service — payments of principal and interest on the state’s bonds — that will grow by 24% in those five years. It would be the largest increase in any budget category.
Read MoreO’Malley administration seeks to float $750 million more in bond debt
The O’Malley administration is seeking authorization to float $750 million more in state debt over the next five years, a move Comptroller Peter Franchot objects to as potentially triggering a property tax hike.
Read MoreHigher state borrowing proposed over Franchot’s objection
A state debt committee voted to increase Maryland’s borrowing by $150 million next year to almost $1.1 billion, and the decision left Comptroller Peter Franchot steaming. “One week we are taking in less money, and the next week we are spending more,” Franchot said in an interview, referring to a write down of estimated revenues Dec. 9. “We are doubling down with a vote on a failed economic model” – that higher taxes, more spending and more debt can reduce unemployment.
Read More$925 million capital budget passes House
The House of Delegates approved $925 million in new debt in its capital budget on Tuesday – but not before several attempts were made to trim the amount that the state was going to borrow. The capital budget is funded through bonds, and the money is spent on infrastructure projects across the state.
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