NY's Governor Cuomo aims to cut capital spending

Reuters News
Posted: Jan 17, 2012 1:04 PM
NY's Governor Cuomo aims to cut capital spending

ALBANY, New York (Reuters) - New York state's capital spending would fall 2 percent while bonded capital spending would be cut 5.9 percent under a $132.5 billion budget plan that Governor Andrew Cuomo unveiled on Tuesday.

Outstanding state-related debt would rise by $1.1 billion to a total of $58.1 billion in fiscal 2013.

About $5.1 billion of bonds would be sold for new capital projects, according to the plan.

Cuomo called on the legislature to grant him the ability to spend up to $500 million from the Debt Reduction Reserve Fund to cut debt and keep bonding capacity below debt caps.

Short-term equipment purchases would be done with annual operating revenue instead of borrowing.

The state also would continue to sell 50 percent of new bonds on a competitive basis, if market conditions permit.

(Reporting by Dan Wiessner; writing by Joan Gralla; editing by Jeffrey Benkoe)