CONSERVATIVES  SUPPORT  DEBT  MANAGEMENT

The New York State Conservative Party supports the bi-partisan effort to establish a State Debt Management Board that includes strict limitations on state and public authority debt and has issued the following legislative memo in support of the Libous/Morelle proposals to the 212 Legislative Members.

The New York State Conservative Party has long championed the need to limit state debt.  This bill seeks to affirm the need to do so. 

The first passage of the proposed constitutional amendment should be done this legislative session in order to present it to the voters in November 2007.  Any delay in doing so only allows more debt to continue.  Voters should be allowed a voice at the earliest possible opportunity.

Current per capita debt is approximately $2,509 – more than double the national average.  The state’s debt burden has grown by $12 billion in just the last five years and this increase is imposing considerable costs on all taxpayers and businesses encouraging both segments to leave for less costly places to reside and do business.

We ask you to let the people have their voice heard…let them make the decision to cap the state’s debt at 5% of personal income and limit debt issuance to 95% of the previous year’s level.  These caps will apply to all “state funded debt” which includes all debt for which the state makes direct or indirect payments.  Let the people decide to limit state debt to capital projects and limit maturity to 30 years.  And let the people vote on requiring a portion of any end-of-fiscal year cash surplus be devoted to state debt reduction. 

Your immediate passage of these proposals will let the people of New York decide what is best for them.  We urge you to pass these bills and give the residents of New York State the opportunity to speak on their own behalf in November of 2007.  Since we are the ones to pay the bills by increased taxes, we want the ability to close the door to “backdoor” borrowing.

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