ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Sunday, January 5, 1997 TAG: 9701060076
SECTION: VIRGINIA PAGE: B-6 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
A committee that monitors state debt says Virginia is a comfortable $243 million away from its limit on bond spending.
The report, by the Debt Capacity Advisory Committee, could be welcome news to politicians and public officials worried about preserving the state's AAA credit rating.
Virginia is among six states that enjoy the highest possible bond rating.
Secretary of Finance Ronald Tillett, who heads the committee, said the report is consistent with Gov. George Allen's position on debt financing.
The governor is recommending no additional bonds in his proposed election-year budget package, and has gone so far as to ask the General Assembly for a one-year moratorium on new bonds.
Tillett held out the possibility, however, that Allen's farewell budget in 1998 could include recommendations for voter-approved general obligation bonds.
Virginia has a long-standing policy that outstanding taxpayer-backed debt not exceed 5 percent of state revenue.
In its December report, the committee noted debt capacity is running at 3.54 percent. Debt would total 4.26 percent if Virginia this year issued the allowable maximum of $243 million in bonds.
LENGTH: Short : 34 linesby CNB