State Indebtedness

Capital Debt Affordability Advisory Committee

The Capital Debt Affordability Advisory Committee was created by the 1990 Vermont Legislature to estimate annually the maximum amounts of new long-term general obligation debt that prudently may be authorized by the state for the next fiscal year. The Committee's estimate is required by law to be based on a number of considerations, historic and projected, including debt service requirements, debt service as a percent of General and Transportation Fund revenues, outstanding debt as a percent of personal income, and per capita debt ratios. The Committee is comprised of five members, four of whom are ex-officio State officials and one of whom is appointed by the Governor from the private sector for a two-year term. The Committee was directed by law to issue a report by September 30 of each calendar year. The Committee recommended a maximum of $43 million in new debt authorization for fiscal year 1997; the Legislature authorized $42.8 million in new bonds. On September 20, 1996 the Committee voted to recommend $43 million as the prudent amount of debt to be authorized for fiscal year 1998.

General Obligation Bonds and Notes Outstanding as of 6/30/96

Source of Payments Totals
General Fund $460,773,000
Transportation Fund 28,305,000
Total $489,078,000

Source of Payments	Totals
General Fund	$460,773,000
Transportation Fund	28,305,000
Total	$489,078,000

Debt Service on General Obligation Bonds as of 6/30/96

Principal Interest Total
General Fund
Fiscal Year 1997
$37,441,818
$22,762,242
$60,204,060
Transportation Fund
Fiscal Year 1997
$2,913,986
$1,508,903
$4,422,889
Total
Fiscal Year 1997
$40,355,804
$24,271,145
$64,626,949

	Principal	Interest	Total
General Fund Fiscal Year 1997	$37,441,818	$22,762,242	$60,204,060
Transportation Fund Fiscal Year 1997	$2,913,986	$1,508,903	$4,422,889
Total Fiscal Year 1997	$40,355,804	$24,271,145	$64,626,949

Vermont Debt Burden Comparison (Moody's Investor Service)

Debt as a percent of total state personal income
Moody's Vermont ratio: 4.9%
Moody's 1996 Median: 2.1%
Vermont Ranking: 8th

Debt per capita
Moody's Vermont ratio: $984.00
Moody's 1996 Median: $431.00
Vermont Ranking: 9th

Debt service budget ratio
Moody's Vermont ratio: 6.6%
Moody's 1996 Median: 3.5%
Vermont Ranking: 8th

Debt as a percent of total state personal income
Moody's Vermont ratio:	4.9%
Moody's 1996 Median:	2.1%
Vermont Ranking:	8th
Debt per capita
Moody's Vermont ratio:	$984.00
Moody's 1996 Median:	$431.00
Vermont Ranking:	9th
Debt service budget ratio
Moody's Vermont ratio:	6.6%
Moody's 1996 Median:	3.5%
Vermont Ranking:	8th

State Bond Rating:

Fitch Investors Service, Inc. AA
Moody’s Investors Service Aa
Standard and Poor’s Ratings Group AA-

Source: Official Statement (11/20/96); Government Finance Associates, Inc. Report of September 12, 1996.

Fitch Investors Service, Inc.	AA
Moody’s Investors Service	Aa
Standard and Poor’s Ratings Group	AA-