debt affordability committee june 20 2013
Download
Skip this Video
Download Presentation
Debt Affordability Committee June 20, 2013

Loading in 2 Seconds...

play fullscreen
1 / 20

Debt Affordability Committee June 20, 2013 - PowerPoint PPT Presentation


  • 91 Views
  • Uploaded on

Debt Affordability Committee June 20, 2013. Debt Affordability Committee’s Charge.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Debt Affordability Committee June 20, 2013' - jolene


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

Debt Affordability Committee’s Charge

  • “On or before September 10 of each year, the committee shall submit to the governor and the general court the committee’s estimate of the total amount of new commonwealth debt that prudently may be authorized for the next fiscal year”
  • “The committee shall review on a continuing basis the size and condition of the commonwealth tax supported debt as well as other debt of any authority of the commonwealth…The estimate shall be made available electronically and prominently displayed on the official website of the commonwealth.”

-Massachusetts General Laws Chapter 29 Section 60B

meeting topics
Meeting Topics
  • Introductions – April 26, 2013
  • Tax Supported Debt – May 17, 2013
    • Tax Supported Debt Part 2 – May 31, 2013
  • Debt Ratio Comparisons – June 20, 2013
  • Debt Service and Authorizations – July 17, 2013
    • Public Hearing – July 17, 2013
  • Recommendation – August 15, 2013
  • Final Report – September 5, 2013
slide4

Today’s Agenda

  • Introduction of attendees
  • Vote on Minutes of May 17, 2013 and May 31, 2013 Meetings
  • Rating Agency Criteria
  • Comparison States – Final list
  • Pertinent Debt Ratios
  • July Meeting – July 17th
    • Public Hearing
    • Debt Service
    • Authorizations
slide5

Minutes

  • May 17, 2013 – VOTE
  • May 31, 2013 – VOTE
rating agencies
Rating Agencies

The Commonwealth uses the three major rating agencies:

  • Fitch Ratings
  • Moody’s Investors Service
  • Standard & Poor’s
  • Working Group chose to use all comparison information from Standard & Poor’s, except as noted
rating agency criteria
Rating Agency Criteria
  • Rating Agencies focus on four main criteria
    • Debt
    • Economy
    • Finances
    • Management
debt and liability profile
Debt and Liability Profile
  • Debt burden
  • Pension liabilities
  • OPEB risk assessment
  • Other:
    • Debt amortization
    • Derivative profile
    • Fixed rate vs variable rate
    • Future capital requirements
    • Nondebt liabilities
    • Indirect risks and contingent liabilities
economy
Economy
  • Demographic profile
  • Economic structure
  • Wealth and income indicators
  • Economic development
  • Other:
    • Industrial diversity
    • Employment volatility
    • Tax burden
finances budgetary performance
Finances/Budgetary Performance
  • Financial management assessment
  • Budget management framework
  • Budget Reserves
  • Liquidity
  • Tax/revenue structure
  • Revenue forecasting
  • Service levels
  • Structural budget performance
  • Other:
    • Operating margin trends
governance management
Governance/Management
  • Fiscal Policy Framework
  • Balanced Budget requirement
  • Disbursement autonomy
  • Voter initiatives
  • Legal framework for debt
  • Intergovernmental funding
  • other:
    • Institutionalized policies
    • Financial reporting and accounting
    • Political, taxpayer and labor environment
    • Revenue and spending limitations
comparison states
Comparison States

Additional

  • Maryland
  • Minnesota
  • New Jersey
  • North Carolina
  • Ohio
  • Oregon
  • Pennsylvania
  • Washington

Required

  • Connecticut
  • Maine
  • New Hampshire
  • Rhode Island
  • Vermont
  • New York

Remove

  • California
  • Illinois
  • Kansas
  • Oklahoma
  • South Carolina
comparison states with ratings
Comparison States with Ratings

Additional

  • Maryland (AAA)
  • Minnesota (AA+)
  • New Jersey (AA-)
  • North Carolina (AAA)
  • Ohio (AA+)
  • Oregon (AA+)
  • Pennsylvania (AA)
  • Washington (AA+)

Required

  • Connecticut (AA)
  • Maine (AA)
  • New Hampshire (AA)
  • Rhode Island (AA)
  • Vermont (AA+)
  • New York (AA)
pertinent debt ratios
Pertinent Debt Ratios
  • Statute
    • Debt service to General Fund revenues
    • Debt to personal income
    • Debt to estimated full-value of property
    • Debt per capita
  • Other
    • Debt as a % of GDP
    • Debt service as a % of total budget
    • Debt service as a % of tax levy
debt to personal income
Debt to Personal Income

*Not included moral obligation debt at $4.5 billion

** "Annual Debt Service" assumes the FY13 projection as footnoted as no debt service was listed for 2012

debt per capita
Debt per Capita

*Not included moral obligation debt at $4.5 billion

** "Annual Debt Service" assumes the FY13 projection as footnoted as no debt service was listed for 2012

debt as of gdp
Debt as % of GDP

*Not included moral obligation debt at $4.5 billion

** "Annual Debt Service" assumes the FY13 projection as footnoted as no debt service was listed for 2012

debt service as of total budget
Debt Service as % of Total Budget

*Not included moral obligation debt at $4.5 billion

** "Annual Debt Service" assumes the FY13 projection as footnoted as no debt service was listed for 2012

debt service as a of tax levy
Debt Service as a % of Tax Levy

*Not included moral obligation debt at $4.5 billion

** "Annual Debt Service" assumes the FY13 projection as footnoted as no debt service was listed for 2012

slide20

July Meeting Topics

  • July Meeting – July 17th
    • Public Hearing
    • Debt Service
    • Authorizations
ad