Tag: Patti Konrad
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.)
Read MoreFederal debt ceiling deadlock could postpone Md. bond issue; state retains AAA rating
If the dispute between the White House and Congress over lifting the U.S. debt ceiling is not resolved soon, the state may put off its scheduled bond sale for upwards of $500 million set for July 27, the state treasurer’s office told a legislative committee Tuesday. “If they don’t have the debt ceiling issue resolved, the markets will be chaotic, and we will probably postpone the sale,” said Patti Konrad, manager of state debt.
Read MoreMoody’s adds state pension liabilities to credit reports
Moody’s Investor Service is adding pension liabilities to the factors it reports publicly in rating total state debt, a new approach one expert called “very significant.” The new numbers showed that while Maryland was not among the top 10 states with the biggest long-term debt including pensions, it ranked between 13th and 17th among the states with the highest debt.
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Maryland uses creative financing to buy $41M in slot machines
The state of Maryland is on its way to becoming the proud owner of $41.5 million worth of video slot machines for the Ocean Downs and Perryville slots casinos through the sale last week of taxable certificate of participation bonds.
The bonds sold quickly last week at a coupon rate of 5%, raising the funds the state needs to purchase 1,825 of the slots at the two casinos, said Patti Konrad, director of debt management in the State Treasurer’s Office, and Deputy Treasurer for External Affairs Howard Freedlander.
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