Staff tells legislators to keep current lid on state debt

By Len Lazarick

Len@MarylandReporter.com

The legislature’s fiscal staff told lawmakers Thursday that they should not follow an O’Malley administration proposal to increase Maryland’s authorized debt by $375 million over the next five years.

The staff said this is one way to reduce debt service — payments of principal and interest on the state’s bonds — that will grow by 24% in those five years. It would be the largest increase in any budget category.

“Debt service is a major influence on everything else,” said Warren Deschenaux, fiscal and policy director for the Department of Legislative Services. Debt service grows from $233 million in fiscal 2015 to $557 million in fiscal 2019, according to a briefing paper (p. 32).

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