NY A03130

Prohibits the state from entering into financing arrangements (by statute, contract, lease, or otherwise) where state payments would service debt issued by state agencies, municipalities, or public/private corporations for state purposes.

Allows the state to contract debt secured by full faith and credit pledge if authorized by law for a single capital work and approved by voters at a general election; no law may be submitted for voter approval within three months of passage or simultaneously with other ballot measures.

Creates a new category permitting the state to contract debt secured by specific state revenues, with the legislature identifying the capital works to be financed; excess revenues must be made available for other purposes as provided by law.

Caps revenue-backed debt (subdivision 3) at 35 percent of total capital works annually, with increases to 50 percent during years when state revenues decline by 2 percent or more, and a graduated reduction back to 35 percent in subsequent years.

Restricts all debt contracting under both categories to financing capital works only, and allows the legislature to repeal debt authorization laws before debt is contracted or to forbid further borrowing under existing laws.