2.2-2714 - Estimated amount of prudent tax-supported debt; affordability considerations. - Virginia Statutes

§ 2.2-2714. Estimated amount of prudent tax-supported debt; affordabilityconsiderations.

Before January 1 of each year, the Committee shall submit to the Governor andto the General Assembly the Committee's estimate of tax-supported debt thatprudently may be authorized for the next fiscal year, together with a reportexplaining the basis for the estimate. In developing its annual estimate andin preparing its annual report, the Committee shall, at a minimum, consider:

1. The amount of tax-supported debt that, during the next fiscal year andannually 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 debtauthorizations for the next biennium. The assessment of the affordability ofthe projected authorizations shall include but not be limited to theconsiderations specified in this section;

3. Projected debt-service requirements during the next fiscal year andannually for the following nine fiscal years based upon (i) existingoutstanding debt, (ii) previously authorized but unissued debt, and (iii)projected bond authorizations;

4. The criteria that recognized bond rating agencies use to judge the qualityof issues of Commonwealth bonds;

5. Any other factor that is relevant to (i) the ability of the Commonwealthto meet its projected debt service requirements for the next two fiscalyears; (ii) the ability of the Commonwealth to support additional debtservice in the upcoming biennium; (iii) the requirements of the statewidecapital plan; and (iv) the interest rate to be borne by, the credit ratingon, or any other factor affecting the marketability of such bonds; and

6. The effect of authorizations of new tax-supported debt on each of theconsiderations of this section.

(1994, c. 43, § 2.1-304.4; 1997, c. 187; 2001, c. 844.)