LOS ANGELES - An annual report from Oregon's Debt Policy Advisory Commission urges lawmakers to "remain prudent with borrowing" during the remainder of the state's 2013-15 biennium.
The commission said in its report that after taking into account the December 2013 revenue forecast and the issuance of $640 million in general fund supported bonds authorized in 2013, the state still has $215 million in remaining debt capacity through 2015.
That amount would allow Oregon to stay below the debt capacity threshold of 5% of general fund revenues recommended by the commission.
State Treasurer Ted Wheeler said Oregon's adherence to a debt limit has helped strengthen its credit rating, allowing it to obtain more favorable interest rates. The state is currently rated Aa1 by Moody's Investors Service, and AA-plus by both Standard & Poor's and Fitch Ratings.
Its lottery-backed debt is rated Aa2 by Moody's and AAA by Standard & Poor's.
"Oregon's discipline is saving taxpayers millions, and also is helping to stretch our limited public funds further," said Wheeler, who is also the chairman of the commission. "As a result, we can finance additional investments that will make Oregon stronger."
The commission advises the governor and legislature on policies related to state debt and long-term capital financing. Other members in the commission include Rep. Phil Barnhart, D-Eugene, Sen. Richard Devlin, D-Tualatin, Department of Administrative Services director Michael Jordan, and public member Timothy Duy, an economics professor at the University of Oregon.
The report, released in January, also projects that based on the current lottery revenue forecast up to $96 million is remaining in lottery capacity. However, the commission recommended a "judicious" approach to any new lottery-backed debt because of the potential impact to the operating budgets that rely on lottery proceeds.
Oregon's combined long-term general obligation, appropriation, and revenue bond debt outstanding was $10.6 billion as of June 30, 2013, according to the report. That amount is a decrease of about $290.8 million compared to the end of fiscal 2012.
Outstanding general fund supported debt totaled $2.74 billion by June 30, the report said.
