And all these promises, along with the ever-increasing debt service costs proposed by the Governor, make future budget gaps difficult to deal with. McCall's report cites future budget gaps, increased backdoor borrowing and a corresponding rise in debt service as three major concerns presented by the Executive budget proposal. The report notes that budget gaps from recent years were easier to address because those gaps were, in part, artificially created through conservative revenue and spending estimates. But you can only squeeze so much juice out of an orange. The promises made in the Executive Budget may be difficult to keep.
Good times can cover up bad policy, but only for a limited time.
Click here for a copy of Comptroller McCall's report The report is also critical of the level of new backdoor debt in the Governor's five-year capital plan. The Governor's plan would increase debt service by more than 40 percent over the next five years. Eighty percent of the State's capital spending will be financed by backdoor borrowing. And prudent government also tries to limit new debt. This capital spending plan is moving the State in the wrong direction.