As the economy weakens, New York will cut back on its pay-as-you-go financing and sell more bonds to finance capital spending in the current fiscal year, according to a report released Friday by the state Division of Budget on the enacted budget's capital and financing plan.

Capital spending in fiscal 2009, which began on April 1, will total $9.15 billion, a 17.8% increase from $7.77 billion in the previous fiscal year. That figure includes $2 billion of "off-budget" spending directly by public authorities using bond proceeds. To finance the program, the state will reduce pay-as-you-go financing to $1.82 billion from $2.51 billion - a 27% decrease from the previous fiscal year.

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