Bill > S01569

This bill proposes a comprehensive amendment to section 11 of article 7 of the state constitution regarding state debt and borrowing arrangements. The amendment establishes new restrictions and guidelines for how the state can contract debt, creating a more structured approach to state financing. Specifically, the bill prohibits the state from entering into financing arrangements that would indirectly support debt payments for state agencies, municipalities, or other entities, regardless of whether the obligation is subject to appropriation. The bill allows the state to contract debt in two primary ways: first, by securing full faith and credit debt for specific capital works that must be approved by voter referendum, and second, by contracting debt secured by specific state revenues. The bill also introduces limits on debt contraction, capping debt at 35% of total capital works in a fiscal year, with provisions to increase this limit to 50% during years of significant state revenue decline. Additionally, the bill specifies that debt can only be used to finance capital works, requires legislative identification of capital projects for debt financing, and provides mechanisms for repealing debt authorization laws. The amendment aims to create more transparency, accountability, and fiscal responsibility in state borrowing practices.

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https://www.nysenate.gov/legislation/bills/2025/S1569