Code of Virginia § 2.2-2714. Estimated amount of prudent tax-supported debt; affordability considerations.
288 words·~1 min read·
/va/title-2-2/chapter-27/2-2-2714A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Before January 1 of each year, the Committee shall submit to the Governor and to the General Assembly the Committee's estimate of tax-supported debt that 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, at a minimum, consider:
1. The amount of tax-supported debt that, during the next fiscal year and annually for the following nine fiscal years
(i)will be outstanding and
(ii)has been authorized but not yet issued;
2. A projected schedule of affordable, state tax-supported debt authorizations for the next biennium. The assessment of the affordability of the projected authorizations shall include but not be limited to the 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
(i)existing outstanding debt,
(ii)previously authorized but unissued debt, and
(iii)projected bond authorizations;
4. The criteria that recognized bond rating agencies use to judge the quality of issues of Commonwealth bonds;
5. Any other factor that is relevant to
(i)the ability of the Commonwealth to meet its projected debt service requirements for the next two fiscal years;
(ii)the ability of the Commonwealth to support additional debt service in the upcoming biennium;
(iii)the requirements of the statewide capital plan; and
(iv)the interest rate to be borne by, the credit rating on, or any other factor affecting the marketability of such bonds; and
6. The effect of authorizations of new tax-supported debt on each of the considerations of this section.
1994, c. 43 , § 2.1-304.4; 1997, c. 187 ; 2001, c. 844 .