Legislation

§ 67-b. Limitations on the issuance of state-supported debt. 1. (a)
State-supported debt may not be contracted for unless, as of October
thirty-first, two thousand one and as of each October thirty-first
thereafter, the total outstanding principal amount of such debt, as of
the last day of the immediately preceding fiscal year, is less than the
designated percentage of the total personal income of the state. Nothing
shall preclude the contracting of state-supported debt prior to October
thirty-first of each year if, as of the last day of the immediately
preceding fiscal year, the total outstanding principal amount of such
debt was less than the designated percentage of the total personal
income of the state. The total outstanding principal amount of debt
shall include all state-supported debt issued on and after April first,
two thousand. Such designated percentage shall be seven and
one-half-tenths of one percent for fiscal year two thousand--two
thousand one, and shall increase by five-tenths of one percent in fiscal
year two thousand one--two thousand two, by an additional four-tenths of
one percent in fiscal year two thousand two--two thousand three, and by
an additional one-third of one percent in each of the seven subsequent
fiscal years. The designated percentage for fiscal year two thousand
ten--two thousand eleven and for each fiscal year thereafter shall be
four percent.

(b) If state-supported debt is issued to refund or otherwise affect
the refunding, retirement or defeasance of state-supported debt
originally issued on and after April first, two thousand, provided such
refundings are conducted in accordance with section thirteen of article
VII of the state constitution, the calculation of the total outstanding
principal amount of debt shall include such refunding debt, and shall
exclude the amount of prior refunded debt, in each year until such
refunding debt is finally retired. Notwithstanding the foregoing, the
provisions of such section thirteen of article VII of the state
constitution relating to the maintenance or management of escrow funds
and sinking funds shall only be applicable to state-supported debt
issued by the state comptroller. If state-supported debt is issued to
refund or otherwise affect the refunding, retirement or defeasance of
state-supported debt issued prior to April first, two thousand, then the
amount of such refunding debt shall be included in the calculation of
the total outstanding principal amount of debt in each year until such
refunding debt is finally retired. In addition, if state-supported debt
is retired or defeased with payments in any fiscal year made by the
state that are not required by mandatory payments, such debt shall be
excluded from the calculation of the total outstanding principal amount
of debt, including retirements or defeasances accomplished on an
economic basis.

2. State-supported debt may not be contracted for unless, as of
October thirty-first, two thousand one and as of each October
thirty-first thereafter, the total amount of interest, installments of
principal, contributions to sinking funds, and related payments on a
cash basis of accounting for state-supported debt in the immediately
preceding fiscal year is less than the designated percentage of total
governmental funds receipts for such fiscal year. Nothing shall preclude
the contracting of state-supported debt prior to October thirty-first of
each year if, in the immediately preceding fiscal year, the total amount
of interest, installments of principal, contributions to sinking funds,
and related payments was less than the designated percentage of total
governmental funds receipts. This shall include the total amount of
payments on such debt issued on and after April first, two thousand, but
shall not include payments in any fiscal year made by the state to
defease or retire debt not required by mandatory payments nor payments
made by the state for debt issued to refund debt that was issued prior
to April first, two thousand. In addition, if state-supported debt is
issued to refund or otherwise affect the refunding, retirement or
defeasance of state-supported debt originally issued on and after April
first, two thousand, provided such refundings are conducted in
accordance with section thirteen of article VII of the state
constitution, the calculation of the total amount of interest,
installments of principal, contributions to sinking funds, and related
payments shall include payments made on such refunding debt, and shall
exclude the payments on the prior refunded debt, in each year until such
refunding debt is finally retired. Such designated percentage shall be
seven and one-half-tenths of one percent for fiscal year two
thousand--two thousand one, and shall increase by five-tenths of one
percent in fiscal year two thousand one--two thousand two, by an
additional four-tenths of one percent in fiscal year two thousand
two--two thousand three, and by an additional one-third of one percent
in each of the ten subsequent fiscal years. The designated percentage
for fiscal year two thousand thirteen--two thousand fourteen and for
each fiscal year thereafter shall be five percent.

3. No state-supported debt shall be contracted except to finance
capital works or purposes.

4. Notwithstanding any other provision of law to the contrary, no
state-supported debt shall be issued with a final maturity of more than
thirty years.

5. The provisions of this section shall apply to debt issued pursuant
to section nine of article VII of the state constitution only to the
extent that such notes remain outstanding.