NY S07543

Repeals and replaces Article 5-B of the State Finance Law to establish new definitions and limitations on state-funded debt, including state debt and state-backed debt issued by the state or public authorities.

Caps state-supported debt at 7.5% of total personal income in fiscal year 2000-2001, increasing incrementally to 4% by fiscal year 2010-2011, and limits debt service payments to a designated percentage of governmental funds receipts ranging from 7.5% to 5%.

Establishes that no additional state-funded debt may be incurred after April 1, 2022 if total debt equals or exceeds 5% of total personal income of the state, with exceptions for short-term, emergency, and refunding debt, and requires all debt be used only for capital projects with maximum 30-year maturity.

Creates the New York State Debt Planning Council with seven members to prescribe annual debt affordability levels, establish policy recommendations, and maintain public reporting of all state bond issuances and debt projections on the Comptroller's website.

Directs 75% of annual general fund cash surplus to the Rainy Day Fund and 25% to the Debt Reduction Reserve Fund to support debt reduction efforts and fiscal stability.