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With Pennsylvania’s legislature considering bills to authorize new capital projects and additional debt to finance those projects, State Treasurer Rob McCord said Treasury’s latest quarterly economic report is a timely educational tool for the public and policy makers.
“Debt plays a large role in our economy and in our daily lives,” said Treasurer McCord. “Governments have reasonable uses for debt. Without borrowing funds, government agencies would not have the resources to build or repair roads, bridges or water lines – all of which are essential to our way of life and our economy.
“The Commonwealth often finances its support for these types of projects through the capital budget process, but few understand that process. We hope this edition will help the public understand the Commonwealth’s existing obligations, how we spend those funds, and the steps the General Assembly and governors take in deciding which projects will receive funding.”
Treasurer McCord said this edition of The McCord Report, among other things, sheds light on Pennsylvania’s net outstanding debt obligations, changes to the Redevelopment Assistance Capital Program borrowing cap, as well as past and projected future debt service costs.
The report also compares outstanding capital debt to the state’s Constitutional debt limit, and it provides a graphic to illustrate steps in the capital budget funding process.
“Ideally, public debt would be used to finance something that has a useful life beyond the borrowing term or for investments that have a return greater than the cost of capital,” said Treasurer McCord, who with the Auditor General is responsible for reviewing new state bond issuances proposed by the Governor.
“As the state’s independently elected chief financial officer, I have sought to act in the best interest of Pennsylvania’s taxpayers to ensure we maintain a manageable debt load and use borrowed funds responsibly. I believe a thorough understanding of Pennsylvania’s debt obligations is important if policy makers are to make prudent decisions about the money we borrow to pay for projects.”
As with past editions of The McCord Report, the Treasurer added this latest edition reflects on the state’s employment situation compared to the national unemployment rate and the rates of neighboring states. It also compares certain tax collections for the first quarter of 2011-12 to the same quarter the previous fiscal year. According to the comparison, personal income tax, sales and use tax, and corporate tax revenues this year are ahead of collections during the 2010-11 fiscal year’s first quarter.
The McCord Report is a quarterly publication that offers unbiased information on timely topics affecting the state and its economic health. Earlier issues have looked at public funding for transportation and higher education, the financial status of Pennsylvania’s two largest public pension funds, and the issue of privatizing Pennsylvania’s wine and spirits stores.
To view the most recent edition of The McCord Report, as well as past issues, visit www.patreasury.gov and click on the “McCord Report” graphic.
With Pennsylvania’s legislature considering bills to authorize new capital projects and additional debt to finance those projects, State Treasurer Rob McCord said Treasury’s latest quarterly economic report is a timely educational tool for the public and policy makers.
“Debt plays a large role in our economy and in our daily lives,” said Treasurer McCord. “Governments have reasonable uses for debt. Without borrowing funds, government agencies would not have the resources to build or repair roads, bridges or water lines – all of which are essential to our way of life and our economy.
“The Commonwealth often finances its support for these types of projects through the capital budget process, but few understand that process. We hope this edition will help the public understand the Commonwealth’s existing obligations, how we spend those funds, and the steps the General Assembly and governors take in deciding which projects will receive funding.”
Treasurer McCord said this edition of The McCord Report, among other things, sheds light on Pennsylvania’s net outstanding debt obligations, changes to the Redevelopment Assistance Capital Program borrowing cap, as well as past and projected future debt service costs.
The report also compares outstanding capital debt to the state’s Constitutional debt limit, and it provides a graphic to illustrate steps in the capital budget funding process.
“Ideally, public debt would be used to finance something that has a useful life beyond the borrowing term or for investments that have a return greater than the cost of capital,” said Treasurer McCord, who with the Auditor General is responsible for reviewing new state bond issuances proposed by the Governor.
“As the state’s independently elected chief financial officer, I have sought to act in the best interest of Pennsylvania’s taxpayers to ensure we maintain a manageable debt load and use borrowed funds responsibly. I believe a thorough understanding of Pennsylvania’s debt obligations is important if policy makers are to make prudent decisions about the money we borrow to pay for projects.”
As with past editions of The McCord Report, the Treasurer added this latest edition reflects on the state’s employment situation compared to the national unemployment rate and the rates of neighboring states. It also compares certain tax collections for the first quarter of 2011-12 to the same quarter the previous fiscal year. According to the comparison, personal income tax, sales and use tax, and corporate tax revenues this year are ahead of collections during the 2010-11 fiscal year’s first quarter.
The McCord Report is a quarterly publication that offers unbiased information on timely topics affecting the state and its economic health. Earlier issues have looked at public funding for transportation and higher education, the financial status of Pennsylvania’s two largest public pension funds, and the issue of privatizing Pennsylvania’s wine and spirits stores.
To view the most recent edition of The McCord Report, as well as past issues, visit www.patreasury.gov and click on the “McCord Report” graphic.
