§ 67-B — Limitations on the issuance of state-supported debt

§ 67-b. Limitations on the issuance of state-supported debt. 1. (a)\nState-supported debt may not be contracted for unless, as of October\nthirty-first, two thousand one and as of each October thirty-first\nthereafter, the total outstanding principal amount of such debt, as of\nthe last day of the immediately preceding fiscal year, is less than the\ndesignated percentage of the total personal income of the state. Nothing\nshall preclude the contracting of state-supported debt prior to October\nthirty-first of each year if, as of the last day of the immediately\npreceding fiscal year, the total outstanding principal amount of such\ndebt was less than the designated percentage of the total personal\nincome of the state. The total outstanding principal amount of debt\nshall include all state-supported debt issued on and after April first,\ntwo thousand. Such designated percentage shall be seven and\none-half-tenths of one percent for fiscal year two thousand--two\nthousand one, and shall increase by five-tenths of one percent in fiscal\nyear two thousand one--two thousand two, by an additional four-tenths of\none percent in fiscal year two thousand two--two thousand three, and by\nan additional one-third of one percent in each of the seven subsequent\nfiscal years. The designated percentage for fiscal year two thousand\nten--two thousand eleven and for each fiscal year thereafter shall be\nfour percent.\n (b) If state-supported debt is issued to refund or otherwise affect\nthe refunding, retirement or defeasance of state-supported debt\noriginally issued on and after April first, two thousand, provided such\nrefundings are conducted in accordance with section thirteen of article\nVII of the state constitution, the calculation of the total outstanding\nprincipal amount of debt shall exclude such refunding debt, and shall\nonly include the amount of prior refunded debt, as if it were still\noutstanding, in each year until such refunding debt is finally retired.\nNotwithstanding the foregoing, the provisions of such section thirteen\nof article VII of the state constitution relating to the maintenance or\nmanagement of escrow funds and sinking funds shall only be applicable to\nstate-supported debt issued by the state comptroller. If state-supported\ndebt is issued to refund or otherwise affect the refunding, retirement\nor defeasance of state-supported debt issued prior to April first, two\nthousand, then the amount of such refunding debt shall be excluded from\nthe calculation of the total outstanding principal amount of debt in\neach year until such refunding debt is finally retired. In addition, if\nstate-supported debt is retired or defeased with payments in any fiscal\nyear made by the state that are not required by mandatory payments, such\ndebt shall be excluded from the calculation of the total outstanding\nprincipal amount of debt, including retirements or defeasances\naccomplished on an economic basis.\n 2. State-supported debt may not be contracted for unless, as of\nOctober thirty-first, two thousand one and as of each October\nthirty-first thereafter, the total amount of interest, installments of\nprincipal, contributions to sinking funds, and related payments on a\ncash basis of accounting for state-supported debt in the immediately\npreceding fiscal year is less than the designated percentage of total\ngovernmental funds receipts for such fiscal year. Nothing shall preclude\nthe contracting of state-supported debt prior to October thirty-first of\neach year if, in the immediately preceding fiscal year, the total amount\nof interest, installments of principal, contributions to sinking funds,\nand related payments was less than the designated percentage of total\ngovernmental funds receipts. This shall include the total amount of\npayments on such debt issued on and after April first, two thousand, but\nshall not include payments in any fiscal year made by the state to\ndefease or retire debt not required by mandatory payments nor payments\nmade by the state for debt issued to refund debt that was issued prior\nto April first, two thousand. In addition, if state-supported debt is\nissued to refund or otherwise affect the refunding, retirement or\ndefeasance of state-supported debt originally issued on and after April\nfirst, two thousand, provided such refundings are conducted in\naccordance with section thirteen of article VII of the state\nconstitution, the calculation of the total amount of interest,\ninstallments of principal, contributions to sinking funds, and related\npayments shall exclude payments made on such refunding debt, and shall\nonly include the payments on the prior refunded debt, as if it were\nstill outstanding, in each year until such refunding debt is finally\nretired. Such designated percentage shall be seven and one-half-tenths\nof one percent for fiscal year two thousand--two thousand one, and shall\nincrease by five-tenths of one percent in fiscal year two thousand\none--two thousand two, by an additional four-tenths of one percent in\nfiscal year two thousand two--two thousand three, and by an additional\none-third of one percent in each of the ten subsequent fiscal years. The\ndesignated percentage for fiscal year two thousand thirteen--two\nthousand fourteen and for each fiscal year thereafter shall be five\npercent.\n 3. No state-supported debt shall be contracted except to finance\ncapital works or purposes.\n 4. Notwithstanding any other provision of law to the contrary, no\nstate-supported debt shall be issued with a final maturity of more than\nthirty years.\n 5. The provisions of this section shall apply to debt issued pursuant\nto section nine of article VII of the state constitution only to the\nextent that such notes remain outstanding.\n