California's ratio of debt service to general fund revenue will exceed 7% in fiscal 2011, Treasurer Bill Lockyer said in his annual Debt Affordability Report.
The treasurer's office releases the report every October.
The debt ratio is up from 6.69% in fiscal 2010, for two reasons. According to the report, the state is issuing more bonds after voters approved several large infrastructure bond measures, while the recession caused general fund revenue to drop precipitously.
"This 'denominator effect' somewhat skews the analysis of the state's ability to take on more debt over the longer term," Lockyer wrote. "The fact remains, however, that California needs to pay serious attention to its growing debt service."
Based on budget and capital plans in place when the report was produced, California is on track to issue $13 billion in general obligation bonds through June 2011, and another $9.9 billion in fiscal 2012.
