Photo: Business Insider
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 per cent 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 per cent 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.