Cuomo pitches 'Restore Mother Nature' bonds for 2020 ballot

New York Gov. Andrew Cuomo is pushing for $3 billion of state bonding to tackle what he called the nation’s most aggressive program for reducing risks posed by climate change.

Cuomo proposed a $3 billion environmental bond act during his annual state of the state address Wednesday that aims to make New York more resilient in combating challenges from extreme weather events. The “Restore Mother Nature” ballot initiative that would go before voters in November would seek natural restoration and resiliency programs all across the state including restoring up to 10,000 acres of freshwater wetlands. Passage of the referendum would also lead to upgrades in flood control infrastructure and a restocking of shellfish populations, Cuomo said.

New York Gov. Andrew Cuomo
April 07, 2017- Albany, NY- Governor Andrew M. Cuomo announces Legislative Leaders and Executive Branch have come to an agreement on 2017-18 Executive Budget.

“It's our responsibility and challenge to leave our planet cleaner and greener and more sustainable for our future generations,” Cuomo said in his remarks delivered to lawmakers in Albany during the first day of the new legislative session. “The economy of tomorrow is the green economy.”

The legislature would need to approve the bond act proposal before it can be decided by voters on Election Day this November. If approved, the borrowing would mark the largest from a voter-approved referendum since a $2.9 billion transportation bond act was passed in 2005. New York voters last approved an environmental bond proposition in 1996 that totaled $1.75 billion for clean water and clean air projects.

New York finished the 2018 fiscal year with $2.4 billion in voter-approved general obligation debt marking a 25% decrease since 2014, according to State Comptroller Tom DiNapoli. State-supported debt was at $51.3 billion in 2018, a 2.3% drop from 2014, with state-funded debt at $62.6 billion, a 1.6% dip from four years earlier, DiNapoli’s data showed. In 2017, New York was the second most-indebted state behind California, and fifth among all states in debt per capita.

New York’s GO bonds are rated Aa1 by Moody’s and AA-plus by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.

Cuomo also urged lawmakers in his speech to legalize recreational marijuana, a plan he also pushed for last year before it stalled in legislature due to disagreements about tax rates and how revenues would be used. He has previously estimated that taxing marijuana sales could ultimately net the state around $300 million in annual tax revenue, but the proceeds would likely take at a least a year before proceeds materialized.

The Democratic governor did not provide specifics in his speech about plans to confront a $6.2 billion budget gap driven largely by rising Medicaid expenses, but said Monday during remarks at an Association for Better New York luncheon that he opposes new tax increases. He is scheduled to outline his 2021 fiscal year budget later this month.

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Bond elections General obligation bonds Climate change State of New York New York
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