Legislature Passes Debt Service Budget Appropriation

The legislature this week passed the debt service appropriation, which is traditionally the first of the budget bills to pass each year as it does not require amendment, giving the legislature a lot of discretion regarding the timing of passage. It is typically a sign that the process is moving forward with an end in sight, though that can never be guaranteed. The bill outlines and approves the payments of state debt obligations and is not considered controversial even though minority parties typically vote no to protest overall growth in state spending. In arguing that case, Assemblyman Barclay said “our debt service costs have increased 53 percent over the last 10 years and now New York follows only Illinois with the highest debt service payments as a percentage of all funds receipts.”

Senator Krueger said:

“This is the bill that guarantees the state of New York is going to pay its debt If we were to not pass this bill … we would have a crisis, because it would be the state of New York saying to everyone who had bonds, every debt holder of state funds, that no, the Legislature decided that we’re going to have a revolution and borrow money and not pay it back.”