[37C-13] Debt affordability study; purpose, information. (a) The purpose of the debt affordability study shall be to provide the legislature with information on the affordability of the future debt planned for the State.

(b) The debt affordability study shall include the following information:

(1) The projected annual appropriation, by source of funding, necessary to pay the annual debt service for the ensuing twenty-five fiscal year period on the following bonds, under the assumption that all are issued:

(A) All authorized, but unissued bonds that have not lapsed as of the September 30 immediately preceding submittal of the study; and

(B) All bonds necessary to fund the capital improvement projects proposed in the fiscal years covered by the applicable multi-year program and financial plan;

(2) A debt service payment schedule showing the annual appropriation, by source of funding, necessary to pay, during the ensuing twenty-five fiscal year period, the annual debt service on:

(A) All bonds identified under paragraph (1); and

(B) All bonds previously issued, but remaining outstanding;

(3) The projected ratio of the following for each source of funding pledged to pay debt service on bonds during each fiscal year of the ensuing twenty-five fiscal year period:

(A) Annual debt service payments to annual revenues; and

(B) Annual debt service payments to annual appropriations;

(4) An examination of whether projected annual revenues from the source of funding are adequate to pay for the annual debt service on the bonds;

(5) An examination of whether any increase in annual debt service payments on the bonds will cause a commensurate decrease of funds available for operating programs with the same source of funding as the debt service payments;

(6) An assessment of whether the annual debt service obligations of the State for the fiscal years covered by the applicable multi-year program and financial plan are affordable to the State; and

(7) An identification of, and discussion on, any noncompliance or possible noncompliance of the State's actual or planned debt issuance with the state debt management policy.

The director of finance may include any other information in the study deemed appropriate or necessary by the director. [L 2015, c 149, pt of 2]

 

 

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