Debt, Be Not Proud

Gov. Gary Herbert last week signed a bill to provide $83 million in bonding authority for buildings at Utah colleges and a mental hospital, despite reservations about using debt.

“We’re going to make sure we’re getting the right balance as far as bonding and building and taking advantage of the fact that we’ve been fiscally prudent — we have a triple-A bond rating — and build when costs are down,” Herbert said.

The top credit rating comes from the frugal state’s sparing use of debt and its commitment to short maturities, typically of 10 to 15 years.

The newly authorized bonds would pay for reconstruction of Utah State Hospital, which is the hub of the state’s mental-health network, along with several higher education projects.

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