Total state debt is growing, and state Comptroller Tom DiNapoli says there is no sign of it slowing down.
DiNapoli released a report Thursday projecting state-funded debt will reach $63.7 billion by March 31, the end of the 2017-18 fiscal year. The New York’s total debt is the second-highest in the U.S. behind California, which has $87 billion in debt.
The state’s total debt is expected to rise to $71.8 billion over the next four fiscal years. Annual debt service payments will likely exceed $8.2 billion by the end of the 2021-22 fiscal year, DiNapoli said.
At the end of the previous fiscal year, outstanding state debt totaled $61.4 billion. A bulk of the debt — $47.2 billion — comes from public authorities. There is an additional $11.7 billion in debt that’s been used for hospital program bonds.
The rising debt will impact the state’s borrowing capacity, according to DiNapoli’s report. Projections show the state’s available borrowing capacity will be $58 million in the 2020-21 fiscal year. That limit is based on the state Debt Reform Act of 2000, which established limits on debt outstanding and debt service.