Assemblyman Steve Hawley (R, I, C – Batavia) today announced that he voted against Assembly Bill A.9702, which looks to increase debt services payments in the 2010-2011 State Budget, despite the state’s recent fiscal crisis, in order to maintain New York’s credit rating.
“Maintaining New York’s credit rating is very important when it comes to issuing bonds for future infrastructure projects throughout the state,” said Hawley. “However, any legislation that increases the state’s debt repayment, when our state is already teetering on the point of insolvency, only sets the precedent that acquiring more debt is okay. New York State has a serious overspending and over-borrowing problem and this piece of legislation clearly shows that.”
“The backdoor borrowing that has helped create this mess must stop. In 1985, backdoor borrowing, which is using authorities to borrow instead of the state directly, comprised 60 percent of total borrowing. Today, that figure stands at 94 percent with $5.9 billion of new debt. We have the second highest debt load in the nation except California.”
“I would rather suffer a slight short-term decrease in the state’s credit rating than continue escalating the state’s ballooning debt problems onto taxpayers for the indefinite future. I voted no on this bill and wish that some of my majority colleagues had considered the consequences of allowing New York’s debt problems to increase by passing this legislation,” Hawley concluded.