New York State Expects 12% More Bonding in FY2014

New York expects state-related debt issuance to increase 12% in fiscal year 2014 from fiscal year 2013.

Gov. Andrew Cuomo’s proposed capital program specified that debt issuance should rise to $5.0 billion in fiscal 2014 from $4.64 billion in fiscal year 2013. The new fiscal year started Monday.

Final issuance estimates will appear in the state’s Enacted Budget Capital Program and Financing Plan, expected at the end of April. However, these are expected to be quite close to Cuomo’s proposed numbers, said New York Division of Budget spokesman Morris Peters.

In other New York bond related news, state Comptroller Thomas DiNapoli has released a list of state-supported bonds expected to come to market from April through June.

The state’s authorities and New York City plans to bring $1.8 billion to the market in this period. This is down from $3.8 billion in the same period of 2012.

During April, $415 million is expected to be sold and in June $1.4 billion is expected to be sold. Nothing is coming to market in May.

The biggest bonds coming to market in April are: $200 million in general resolution bonds from the Triborough Bridge and Tunnel Authority, $230 million in personal income tax conversion bonds from the New York City Transitional Finance Authority, $221 million in mortgage revenue bonds from the State of New York Mortgage Agency, and $110 million in multi-family housing revenue bonds from the New York City Housing Development Corporation.

June’s bonds are: $800 million in general obligation refunding from New York City, $226 million in reoffering bonds from the Long Island Power Authority, $800 million in personal income tax bonds from the New York City Transitional Finance Authority, $550 million in capital projects bonds from the New York City Municipal Water Finance Authority, and $350 million in transportation revenue bonds from the Metropolitan Transportation Authority.

All of the bonds are expected to be tax exempt. They will generally be fixed rate. The bond from the housing development corporation will have both fixed rate and variable rate components and the LIPA bond is expected to be purely variable rate.

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