Cuomo Borrowing Most Since 2006 Shows Fiscal Muscle: Muni Credit
Freeman Klopott
With New York poised for its best credit rating in four decades, Governor Andrew Cuomo is authorizing the most borrowing since 2006 as he boosts investments in schools, roads and health care.
The $7.6 billion in new obligations in the budget approved in March will be spread out over at least five years. It includes $2 billion for school technology, the first bond referendum on the ballot since 2005; $1.2 billion to rehab health-care facilities; and about $1 billion for economic development.
The state has more room to issue bonds after its debt load shrank the past two years -- something that hasn’t happened in five decades. Officials also project faster growth in personal income, which is used to calculate the ceiling. Meanwhile, New York may win its highest grade from Standard & Poor’s since 1972 after four consecutive on-time budgets.
“Nothing speaks better to the state benefiting from a positive economy than its willingness to further leverage itself,” said Charles Grande, head of muni research in New York at UBS Global Asset Management, which oversees about $14 billion.
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