Gov. Deval Patrick last week announced that new-money borrowing for fiscal 2009, which began July 1, will decrease by $50 million to $1.57 billion to reflect lower-than-anticipated revenues.
Massachusetts limits its debt service costs to 8% of budgeted revenues. As the state has received roughly $1.1 billion less in budgeted revenues this year, officials altered its bonding plan in order to keep debt levels in line with new revenue projections. In addition, officials expect to limit new-money borrowing beyond the current year.