2005 Vermont Code - § 1001. — Repealed. 1965, No. 125, § 23, eff. July 2, 1965.

§ 1001. Capital debt affordability advisory committee

(a) Committee established. A capital debt affordability advisory committee is hereby created with the duties and composition provided by this section.

(b) Committee duties.

(1) The committee shall review annually the size and affordability of the state tax supported general obligation debt, and submit to the governor and to the general assembly an estimate of the maximum amount of new long-term general obligation debt that prudently may be authorized for the next fiscal year. The estimate of the committee shall be advisory and in no way bind the governor or the general assembly.

(2) The committee shall conduct ongoing reviews of the amount and condition of bonds, notes and other obligations of instrumentalities of the state for which the state has a contingent or limited liability or for which the state legislature is permitted to replenish reserve funds, and, when deemed appropriate, recommend limits on the occurrence of such additional obligations to the governor and to the general assembly.

(c) Committee estimate of a prudent amount of general obligation debt; affordability considerations. On or before September 30 of each year, the committee shall submit to the governor and the general assembly the committee's estimate of general obligation debt which prudently may be authorized for the next fiscal year, together with a report explaining the basis for the estimate. In developing its annual estimate, and in preparing its annual report, the committee shall consider:

(1) The amount of state general obligation bonds that, during the next fiscal year, and annually for the following nine fiscal years:

(A) will be outstanding; and

(B) have been authorized but not yet issued.

(2) A projected schedule of affordable state general obligation bond authorizations, for the next fiscal year and annually for the following nine fiscal years. The assessment of the affordability of the projected authorizations shall be based on all of the remaining considerations specified in this section.

(3) Projected debt service requirements during the next fiscal year, and annually for the following nine fiscal years, based upon:

(A) existing outstanding debt;

(B) previously authorized but unissued debt; and

(C) projected bond authorizations.

(4) The criteria that recognized bond rating agencies use to judge the quality of issues of state bonds, including but not limited to:

(A) existing and projected total debt service on general obligation debt as a percentage of combined general and transportation fund revenues, excluding surpluses in these revenues which may occur in an individual fiscal year; and

(B) existing and projected total general obligation debt outstanding as a percentage of total state personal income.

(5) The principal amounts currently outstanding, and balances for the next fiscal year, and annually for the following nine fiscal years, of existing:

(A) obligations of instrumentalities of the state for which the state has a contingent or limited liability;

(B) any other long-term debt of instrumentalities of the state not secured by the full faith and credit of the state, or for which the state legislature is permitted to replenish reserve funds; and

(C) to the maximum extent obtainable, all long-term debt of municipal governments in Vermont which is secured by general tax or user fee revenues.

(6) The economic conditions and outlook for the state.

(7) Any other factor that is relevant to:

(A) the ability of the state to meet its projected debt service requirements for the next five fiscal years; or

(B) the interest rate to be borne by, the credit rating on, or other factors affecting the marketability of state bonds.

(8) The effect of authorizations of new state debt on each of the considerations of this section.

(d) Committee composition.

(1) Membership. Committee membership shall consist of:

(A) As ex officio members:

(i) the state treasurer;

(ii) the auditor of accounts;

(iii) the secretary of administration; and

(iv) the secretary of the Vermont municipal bond bank.

(B) One individual not an official or employee of state government appointed by the governor for a two-year term.

(2) Chairperson. The state treasurer shall be the chairperson of the committee.

(e) Other attendants of committee meetings. Staff of the legislative council and the joint fiscal committee shall be invited to attend committee meetings for the purpose of fostering a mutual understanding between the executive and legislative branches on the appropriate statistics to be used in committee reviews, debt affordability considerations, and recommendations.

(f) Information. All public entities whose liabilities are to be considered by the committee, shall annually provide the state treasurer with the information the committee deems necessary for it to carry out the requirements of this subchapter. (Added 1989, No. 258 (Adj. Sess.), § 1.)