NY State Senate Bill 2009-S1954

Senate Bill S1954

2009-2010 Legislative Session

Provides for the creation of a state debt management board to serve in an advisory capacity and for a limitation on the amount of debt the state may incur

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to finance
Feb 10, 2009	referred to finance

2009-S1954 (ACTIVE) - Details

See Assembly Version of this Bill:: A7675
Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add Art 5-E §§69-n - 69-q & Art 5-F §§69-t & 69-u, St Fin L
Versions Introduced in 2011-2012 Legislative Session:: A4688

2009-S1954 (ACTIVE) - Summary

Provides for the creation of a state debt management board to serve in an advisory capacity to the governor and the legislature on state debt and capital financing; provides for a limitation on the amount of debt the state may incur based on level of existing debt, state personal income, and state government receipts; directs the state comptroller to collect and analyze data with respect to outstanding state related debt.

2009-S1954 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1954

 TITLE OF BILL :  An act to amend the state finance law, in relation
to the creation of a debt management board and limiting the amount of
state related debt that may be issued


 PURPOSE :  This bill would provide an intermediate step to managing
and restraining State related debt issuance by creating a Debt
Management Board and restricting debt issuance through a cap on
outstanding debt, as a percentage of personal income, and a cap on
annual debt service, as a percentage of governmental funds receipts.

 SUMMARY OF PROVISIONS :  Section 1 of this bill would amend the State
Finance Law by adding a new Article 5-E, "Debt Management Board."
Proposed section 69-n sets forth definitions of terms for purposes of
Article 5-E, including "State debt," which is voter-approved debt;
"State backed debt," which is debt backed by State payments (back-door
borrowing); and "State-related debt," which includes both.

Proposed new section 69-o would create the New York State Debt
Management Board (the "Board"), to consist of the Governor, the
Comptroller, the Budget Director, the Assembly Speaker, the Temporary
President of the Senate, the Minority Leader of the Assembly, and the
Minority Leader of the Senate, who could designate representatives.
The Governor would designate the chairman. Board members would serve

without salary or per diem.

Proposed section 69-p sets forth the powers, functions and duties of
the Board, including the responsibility to recommend to the Governor
and Legislature policy guidelines for the issuance of State-related
debt and other capital financing matters. Such policies would cover
matters such as refunding criteria, the use of credit enhancements,
debt structure and goals for the proportion of capital spending to be
financed with debt and the proportion to be financed with current
appropriations.

Section 69-q directs the Comptroller to collect and analyze data
respecting outstanding State related debt and report to the Board, the
Governor and the Legislature on an annual basis on the amount and
categories of debt, the issuers and the differences in credit rating
among categories and issuers.

Section two of the bill would add a new Article 5-F to the State
Finance Law, "Limitations on State Related Debt." Proposed section
69-t defines terms used in Article 5-F. Proposed section 69-u limits
the issuance of all State related debt in two ways. First, no State
backed debt or newly authorized State debt could be issued after March
31, 2003 unless the aggregate amount of outstanding debt contracted
after that date would be less than the designated percentage of total
personal income of the State. The designated percentage would be one
percent in the fiscal year which ends the year after enactment of this
legislation, increasing incrementally in the seven subsequent fiscal
years when it would reach three and one-half percent for fiscal year
2011 and thereafter.

Second, no State related debt could be issued after September 1st of
the year following enactment, if, as of the last day of the preceding
fiscal year, the aggregate annual debt service in any subsequent year
on all outstanding State related debt would exceed 5.75 percent of
total governmental funds receipts of the State for the preceding
issuance. The Comptroller would be directed to develop procedures for
maintaining a current total of aggregate debt service due in any year
on all State related outstanding debt.


 JUSTIFICATION :  The debt reform constitutional amendment rejected by
the voters in November 1995 would have restricted backdoor borrowing
and authorized a new type of revenue debt that could be issued without
voter approval in an amount not exceeding 4.4 percent of total
personal income of the State. The amendment was criticized for leaving
too many exceptions to backdoor borrowing and for setting the cap on
borrowing so high that it was meaningless. Pending the proposal and
passage of a new constitutional amendment, a process that takes a
minimum of two to three years, this statutory amendment would impose
meaningful discipline on the State's borrowing practices.

The creation of a New York State Debt Management Board would allow for
the coordination and consistent application of standards for debt
issuance by the State and its public authorities, which should
contribute to a higher degree of restraint in matters such as
refundings and capitalization of interest, which can be subject to
abuse. It has been argued that the Public Authorities Control Board
currently fulfills this function, but it does so on an ad hoc basis.
The Debt Management Board would be able to step away from a specific
financing to consider overall policies in the light of comprehensive
data on the condition of the State's debt burden.

The limitations on debt issuance that would be established by this
bill are both sensible and realistic. Unlike the recent constitutional
amendment, this bill includes newly authorized State general
obligation debt under the cap on outstanding debt as a percentage of
personal income of the State, and lowers the ultimate cap from 4.4
percent to 3.5 percent. This provision was similar to the provisions
of a Governor's Program Bill submitted in anticipation of voter
approval of the constitutional amendment rejected in November 1995.
This bill introduces a second cap, on debt service as a percentage of
total governmental funds receipts, which are essentially all funds,
including federal.  Because debt service affordability is perhaps the
most important aspect of debt reform, this bill provides for a debt
service limitation as an added safeguard. The percentage figure would
be established once a year, to avoid the problem of tracking a "moving
target" as old bonds are paid off and new ones issued.

New York State is experiencing rapid growth in debt service as a share
of resources, driven primarily by multi-year tax cuts, much slower
growth in federal funds and increased reliance on borrowing for the
capital plan. Based on the Executive's current capital plan, New
York's debt service as a percentage of all funds revenues is 4.2
percent for the fiscal year ending 2004.  Setting a goal of 5.75
percent would give the State a window of time for planning and
reduction of debt issuance. The goal is both necessary and reasonable.
Controlling the rapid expansion of State related debt would improve
the State's ability to balance its operating budget and would
significantly improve the State's credit rating, resulting in a lower
cost of borrowing.

New York State must make a commitment to debt reform that is credible
and responsive to public concerns and interests. We should remain
committed to a constitutional change, but the proposed statutory
amendments would address the immediate problem of our ballooning debt
service burden and give the public confidence in its leadership.

 PRIOR LEGISLATIVE HISTORY :
2007-08: S.2884: Referred to Finance
2006-06: S.2589: Referred to Finance
2003-04: S.1004: Referred to Finance
2001-02: S.1484: Referred to Finance

 EFFECTIVE DATE :
Immediately.

2009-S1954 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1954

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 10, 2009
                               ___________

Introduced  by  Sen.  STACHOWSKI  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, in relation to the creation of  a
  debt  management  board  and limiting the amount of state related debt
  that may be issued

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  state finance law is amended by adding a new article
5-E to read as follows:

                               ARTICLE 5-E
                          DEBT MANAGEMENT BOARD
SECTION 69-N. DEFINITIONS.
        69-O. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE.
        69-P. POWERS, FUNCTIONS AND DUTIES OF THE NEW  YORK  STATE  DEBT
                MANAGEMENT BOARD; LIMITATIONS.
        69-Q. COMPTROLLER'S DUTIES WITH RESPECT TO BOARD.
  S  69-N.    DEFINITIONS. AS USED IN THIS ARTICLE AND ARTICLE FIVE-F OF
THIS CHAPTER, THE FOLLOWING TERMS SHALL  HAVE  THE  MEANINGS  SET  FORTH
BELOW:
  1.  STATE  DEBT.  ALL  BONDS AND BOND ANTICIPATION NOTES ISSUED BY THE
STATE COMPTROLLER PURSUANT TO ARTICLE FIVE OF THIS CHAPTER.
  2. STATE BACKED DEBT. ALL DEBT OTHER THAN STATE  DEBT  ISSUED  BY  ANY
STATE  OFFICER,  AGENCY,  OR  ENTITY, INCLUDING ANY STATE PUBLIC BENEFIT
CORPORATION OR OTHER STATE PUBLIC CORPORATION, AND BACKED BY ANY  AGREE-
MENT  BY THE STATE, STATUTORY, CONTRACTUAL, OR OTHERWISE, WHETHER OR NOT
CONTINGENT, WHEREBY THE STATE MAY  BE  CALLED  UPON  TO  MAKE  PAYMENTS,
WHETHER  OR  NOT SUBJECT TO APPROPRIATION, THAT ARE INTENDED TO BE USED,
DIRECTLY OR INDIRECTLY, TO PAY DEBT SERVICE. STATE BACKED DEBT SHALL NOT
INCLUDE DEBT BACKED BY MONEY APPROPRIATED OR  OTHERWISE  MADE  AVAILABLE
FOR SOME OTHER PURPOSE THAT MAY INCIDENTALLY BE USED TO PAY DEBT SERVICE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08069-01-9

S. 1954                             2

OR  THAT  IS  APPROPRIATED  TO  ANOTHER  ENTITY FOR A PURPOSE OTHER THAN
PAYMENT OF DEBT SERVICE AND WHICH MAY BE INTERCEPTED BY THE  COMPTROLLER
ON A CONTINGENT BASIS TO PAY DEBT SERVICE OF THE ISSUING ENTITY.
  3. STATE RELATED DEBT. ALL STATE DEBT AND ALL STATE BACKED DEBT.
  S  69-O. NEW YORK STATE DEBT MANAGEMENT BOARD; CREATION; PROCEDURE. 1.
THE NEW YORK STATE DEBT MANAGEMENT BOARD IS HEREBY CREATED TO  HAVE  AND
EXERCISE THE POWERS, DUTIES, AND PREROGATIVES PROVIDED BY THE PROVISIONS
OF THIS ARTICLE AND ANY OTHER PROVISION OF LAW.
  2. THE MEMBERSHIP OF THE BOARD SHALL CONSIST OF SEVEN PERSONS, INCLUD-
ING THE GOVERNOR, THE DIRECTOR OF THE BUDGET, THE STATE COMPTROLLER, THE
SPEAKER  OF  THE  ASSEMBLY,  THE  TEMPORARY PRESIDENT OF THE SENATE, THE
MINORITY LEADER OF THE ASSEMBLY, AND MINORITY LEADER OF THE SENATE.  THE
GOVERNOR  SHALL DESIGNATE THE CHAIRPERSON, WHO SHALL SERVE AT THE PLEAS-
URE OF THE GOVERNOR. EACH MEMBER OF  THE  BOARD  SHALL  BE  ENTITLED  TO
DESIGNATE A REPRESENTATIVE TO ATTEND MEETINGS OF THE BOARD IN HIS OR HER
PLACE  AND  TO  VOTE OR OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER
ABSENCE.  NOTICE OF SUCH DESIGNATION SHALL BE FURNISHED  IN  WRITING  TO
THE  BOARD BY THE DESIGNATED MEMBER. A REPRESENTATIVE SHALL SERVE AT THE
PLEASURE OF THE DESIGNATING MEMBER DURING THE MEMBER'S TERM OF OFFICE. A
REPRESENTATIVE SHALL NOT BE AUTHORIZED TO DELEGATE ANY  OF  HIS  OR  HER
DUTIES OR FUNCTIONS TO ANY OTHER PERSON.
  3.  THE BOARD SHALL ACT WHENEVER AUTHORIZED BY A MAJORITY OF ALL VOTES
CAST AT A MEETING OF THE BOARD. EACH MEMBER OF THE BOARD SHALL BE  ENTI-
TLED TO AS MANY VOTES AS FOLLOWS:
  A. THE GOVERNOR SHALL HAVE SEVENTY-FIVE VOTES;
  B. THE STATE COMPTROLLER SHALL HAVE SEVENTY-FIVE VOTES;
  C. THE SPEAKER OF THE ASSEMBLY SHALL HAVE THE NUMBER OF VOTES EQUAL TO
ONE  HUNDRED  TIMES  THE NUMBER OF MEMBERS OF HIS OR HER POLITICAL PARTY
WITHIN HIS OR HER HOUSE DIVIDED BY THE TOTAL NUMBER OF MEMBERS IN HIS OR
HER HOUSE ROUNDED TO THE NEAREST WHOLE NUMBER;
  D. THE MAJORITY LEADER OF THE SENATE SHALL HAVE THE  NUMBER  OF  VOTES
EQUAL TO ONE HUNDRED TIMES THE NUMBER OF MEMBERS OF HIS OR HER POLITICAL
PARTY  WITHIN HIS OR HER HOUSE DIVIDED BY THE TOTAL NUMBER OF MEMBERS IN
HIS OR HER HOUSE ROUNDED TO THE NEAREST WHOLE NUMBER;
  E. THE MINORITY LEADER OF THE ASSEMBLY SHALL HAVE THE NUMBER OF  VOTES
EQUAL TO ONE HUNDRED TIMES THE NUMBER OF MEMBERS OF HIS OR HER POLITICAL
PARTY  WITHIN HIS OR HER HOUSE DIVIDED BY THE TOTAL NUMBER OF MEMBERS IN
HIS OR HER HOUSE ROUNDED TO THE NEAREST WHOLE NUMBER;
  F. THE MINORITY LEADER OF THE SENATE SHALL HAVE THE  NUMBER  OF  VOTES
EQUAL TO ONE HUNDRED TIMES THE NUMBER OF MEMBERS OF HIS OR HER POLITICAL
PARTY  WITHIN HIS OR HER HOUSE DIVIDED BY THE TOTAL NUMBER OF MEMBERS IN
HIS OR HER HOUSE ROUNDED TO THE NEAREST WHOLE NUMBER;
  G. THE DIRECTOR OF THE BUDGET SHALL  VOTE  ONLY  WHEN  ACTING  AS  THE
DESIGNATED REPRESENTATIVE OF ONE OR MORE OF THE OTHER BOARD MEMBERS.
  4.  NOTWITHSTANDING  ANY  INCONSISTENT  PROVISIONS  OF  LAW,  GENERAL,
SPECIAL, OR LOCAL, NO OFFICER OR EMPLOYEE OF THE STATE, OF ANY POLITICAL
SUBDIVISION OF THE STATE,  OF  ANY  GOVERNMENTAL  ENTITY  OPERATING  ANY
PUBLIC SCHOOL OR COLLEGE, OR OF ANY OTHER PUBLIC AGENCY OR INSTRUMENTAL-
ITY  OR UNIT OF GOVERNMENT WHICH EXERCISES GOVERNMENTAL POWERS UNDER THE
LAWS OF THE STATE SHALL FORFEIT SUCH OFFICE OR EMPLOYMENT BY  REASON  OF
ACCEPTANCE  OR APPOINTMENT AS A MEMBER, REPRESENTATIVE, OFFICER, EMPLOY-
EE, OR AGENT OF THE BOARD, NOR SHALL SERVICE AS SUCH  MEMBER,  REPRESEN-
TATIVE,  OFFICER, EMPLOYEE, OR AGENT OF THE BOARD BE DEEMED INCOMPATIBLE
OR IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT. THE MEMBERS, THEIR REPRE-
SENTATIVES, OFFICERS, AND STAFF OF THE BOARD SHALL BE  DEEMED  EMPLOYEES
WITHIN THE MEANING OF SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW.

S. 1954                             3

  5.  THE  MEMBERS  OF  THE BOARD SHALL SERVE WITHOUT SALARY OR PER DIEM
ALLOWANCE BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL  AND  NECES-
SARY EXPENSES INCURRED IN THE PERFORMANCE OF OFFICIAL DUTIES PURSUANT TO
THIS  SECTION  OR  OTHER  PROVISION OF LAW; PROVIDED, HOWEVER, THAT SUCH
MEMBERS  AND  REPRESENTATIVES  ARE  NOT,  AT  THE TIME SUCH EXPENSES ARE
INCURRED, PUBLIC EMPLOYEES OTHERWISE ENTITLED TO SUCH REIMBURSEMENT.
  S 69-P. POWERS, FUNCTIONS AND  DUTIES  OF  THE  NEW  YORK  STATE  DEBT
MANAGEMENT  BOARD;  LIMITATIONS.  1.  THE NEW YORK STATE DEBT MANAGEMENT
BOARD SHALL HAVE THE POWER AND IT SHALL BE ITS DUTY TO MAKE  RECOMMENDA-
TIONS  TO  THE  GOVERNOR  AND  THE LEGISLATURE OF POLICIES TO GOVERN THE
ISSUANCE OF ALL STATE RELATED DEBT AND OTHER CAPITAL FINANCING MATTERS.
  2. ON OR BEFORE THE FIRST DAY OF THE SIXTH MONTH  AFTER  THIS  ARTICLE
SHALL HAVE BECOME LAW, THE BOARD SHALL SUGGEST POLICY GUIDELINES FOR THE
ISSUANCE  OF  ALL  STATE  RELATED  DEBT AND FOR CAPITAL FINANCING.  SUCH
GUIDELINES SHALL COVER, AMONG OTHER ITEMS, THE FOLLOWING:
  A. CAPITALIZATION OF INTEREST ON STATE RELATED DEBT;
  B. CRITERIA FOR REFUNDING OUTSTANDING STATE RELATED  DEBT,  INCLUDING,
BUT NOT LIMITED TO, SUCH MATTERS AS EXTENSION OF THE TERM OF OUTSTANDING
DEBT, PRESENT VALUE SAVINGS, AND DISTRIBUTION OF ACTUAL SAVINGS;
  C. THE USE OF CREDIT ENHANCEMENTS WITH RESPECT TO STATE RELATED DEBT;
  D. SUCH OTHER POLICY MATTERS RELATING TO THE ISSUANCE OF STATE RELATED
DEBT AS THE BOARD MAY DETERMINE TO BE APPROPRIATE;
  E.  STRUCTURE  FOR STATE RELATED DEBT, SUCH AS RATE OF AMORTIZATION OF
PRINCIPAL; AND
  F. GOALS FOR THE PROPORTION OF STATE CAPITAL SPENDING TO  BE  FINANCED
WITH DEBT AND THE PROPORTION TO BE FINANCED WITH CURRENT APPROPRIATIONS.
  THE  BOARD SHALL ANNUALLY REVIEW THE RECOMMENDED POLICY GUIDELINES AND
RECOMMEND SUCH CHANGES OR ADDITIONS AS IT DEEMS ADVISABLE ON  OR  BEFORE
THE ANNIVERSARY DATE OF ITS ORIGINAL RECOMMENDATION.
  S  69-Q.  COMPTROLLER'S  DUTIES WITH RESPECT TO BOARD. THE COMPTROLLER
SHALL COLLECT AND ANALYZE DATA WITH RESPECT TO OUTSTANDING STATE RELATED
DEBT AND, AT LEAST ANNUALLY, ON OR BEFORE THE LAST DAY OF  THE  CALENDAR
YEAR,  REPORT  TO  THE  BOARD,  THE GOVERNOR, AND THE LEGISLATURE ON THE
CONDITION OF STATE RELATED DEBT. SUCH REPORT SHALL INCLUDE, BUT  NOT  BE
LIMITED  TO, THE AMOUNT OF STATE RELATED DEBT OUTSTANDING, THE DIFFERENT
ISSUERS AND CATEGORIES OF SUCH  DEBT,  AND  ANY  DIFFERENCES  IN  CREDIT
RATING AMONG CATEGORIES AND ISSUERS.
  S  2.  The state finance law is amended by adding a new article 5-F to
read as follows:

                               ARTICLE 5-F
                    LIMITATIONS ON STATE RELATED DEBT
SECTION 69-T. DEFINITIONS.
        69-U. LIMITATIONS ON THE ISSUANCE OF STATE RELATED DEBT.
  S 69-T. DEFINITIONS. WHEN USED IN THIS  ARTICLE  THE  FOLLOWING  TERMS
SHALL HAVE THE MEANINGS SET FORTH BELOW:
  1.  TOTAL  PERSONAL  INCOME  OF THE STATE. THE MOST RECENTLY PUBLISHED
ESTIMATED DOLLAR AMOUNT DETERMINED AS TOTAL PERSONAL INCOME OF THE STATE
OF NEW YORK BY THE UNITED STATES DEPARTMENT OF COMMERCE OR ANY SUCCESSOR
AGENCY FOR THE FOUR MOST RECENT SUCCESSIVE CALENDAR QUARTERS  FOR  WHICH
INFORMATION  IS  AVAILABLE  PRIOR  TO THE SUBMISSION OF THE BUDGET BILLS
PURSUANT TO ARTICLE SEVEN OF THE CONSTITUTION. SUBSEQUENT  REVISIONS  OF
THE  PUBLISHED  ESTIMATED DOLLAR AMOUNT FOR SUCH CALENDAR QUARTERS SHALL
NOT AFFECT THE VALIDITY OF THE DETERMINATION MADE FOR ANY FISCAL YEAR.
  2. TOTAL GOVERNMENTAL FUNDS RECEIPTS OF THE STATE. THE TOTAL AMOUNT OF
RECEIPTS OF ALL GOVERNMENTAL FUNDS OF THE  STATE,  AS  REPORTED  BY  THE

S. 1954                             4

STATE  COMPTROLLER  FOR THE FISCAL YEAR PRECEDING THE YEAR IN WHICH DEBT
IS TO BE INCURRED.
  S 69-U. LIMITATIONS ON THE ISSUANCE OF STATE RELATED DEBT. 1. NO STATE
BACKED  DEBT  SHALL BE CONTRACTED AFTER MARCH THIRTY-FIRST, TWO THOUSAND
NINE, AND NO STATE DEBT AUTHORIZED AFTER MARCH THIRTY-FIRST,  TWO  THOU-
SAND  NINE  SHALL  BE  CONTRACTED  UNLESS,  WHEN  ADDED TO THE AGGREGATE
OUTSTANDING PRINCIPAL AMOUNT OF STATE BACKED DEBT CONTRACTED AFTER MARCH
THIRTY-FIRST, TWO THOUSAND NINE AND STATE DEBT AUTHORIZED AND CONTRACTED
AFTER MARCH THIRTY-FIRST, TWO THOUSAND NINE, THE TOTAL AMOUNT  SHALL  BE
LESS  THAN THE DESIGNATED PERCENTAGE OF THE TOTAL PERSONAL INCOME OF THE
STATE. THE DESIGNATED PERCENTAGE SHALL BE ONE PERCENT  FOR  FISCAL  YEAR
TWO  THOUSAND  NINE--TWO THOUSAND TEN AND SHALL INCREASE BY ONE-THIRD OF
ONE PERCENT IN EACH OF THE SEVEN SUBSEQUENT FISCAL YEARS. THE DESIGNATED
PERCENTAGE FOR FISCAL YEAR TWO THOUSAND SIXTEEN--TWO THOUSAND  SEVENTEEN
AND FOR EACH FISCAL YEAR THEREAFTER SHALL BE THREE AND ONE-HALF PERCENT.
DEBT ISSUED TO REFUND STATE BACKED DEBT THAT WAS ORIGINALLY ISSUED ON OR
PRIOR  TO  MARCH  THIRTY-FIRST, TWO THOUSAND NINE SHALL BE EXCLUDED FROM
THE CALCULATION; PROVIDED THAT THERE WAS A DEBT SERVICE SAVINGS IN  EACH
YEAR  TO  MATURITY  OF  THE  REFUNDING DEBT. STATE BACKED DEBT ISSUED TO
REFUND STATE BACKED DEBT ISSUED AFTER MARCH THIRTY-FIRST,  TWO  THOUSAND
NINE  AND  STATE DEBT ISSUED TO REFUND STATE DEBT AUTHORIZED AFTER MARCH
THIRTY-FIRST, TWO THOUSAND NINE SHALL BE EXCLUDED FROM  THE  CALCULATION
UNTIL  THE  DEBT IT IS ISSUED TO REFUND IS EXTINGUISHED, AT WHICH TIME A
PORTION OF SUCH DEBT SHALL BE INCLUDED THAT IS EQUAL TO  THE  AMOUNT  OF
THE REFUNDING DEBT THEN OUTSTANDING MULTIPLIED BY A FRACTION THE NUMERA-
TOR OF WHICH IS EQUAL TO THE AMOUNT OF DEBT REFUNDED AND THE DENOMINATOR
OF WHICH IS EQUAL TO THE AMOUNT OF REFUNDING DEBT INCURRED.
  2. ADDITIONALLY, NO STATE RELATED DEBT SHALL BE ISSUED AFTER SEPTEMBER
FIRST, TWO THOUSAND NINE IF THE AGGREGATE ANNUAL AMOUNT OF DEBT SERVICE,
AS  DETERMINED  BY  THE  COMPTROLLER,  DUE  ON  ALL  STATE  RELATED DEBT
OUTSTANDING ON THE LAST DAY OF THE PRECEDING FISCAL YEAR AND EXPECTED TO
BE PAID, DIRECTLY OR INDIRECTLY,  FROM  STATE  APPROPRIATIONS  OR  OTHER
STATE PAYMENTS SHALL EXCEED IN ANY YEAR, FIVE AND THREE-QUARTERS PERCENT
OF  TOTAL  GOVERNMENTAL  FUNDS  RECEIPTS OF THE STATE FOR SUCH PRECEDING
FISCAL YEAR.
  3. THE COMPTROLLER SHALL DEVELOP PROCEDURES  FOR  MAINTAINING  AT  ALL
TIMES A CURRENT TOTAL OF THE AGGREGATE AMOUNT OF DEBT SERVICE DUE IN ANY
YEAR  AND EXPECTED TO BE PAID, DIRECTLY OR INDIRECTLY, FROM STATE APPRO-
PRIATIONS, OR OTHERWISE FROM STATE PAYMENTS, ON ALL STATE  RELATED  DEBT
THEN OUTSTANDING. SUCH PROCEDURES SHALL BE IN PLACE NO LATER THAN AUGUST
FIRST, TWO THOUSAND NINE.
  S 3. This act shall take effect immediately.

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