Frantz: Saddling future generations with debt obligations [Greenwich Post]

State Senator L. Scott Frantz said the approvals will saddle future generations with debt and place the state “within a whisker” of exceeding its cap on bonding for the current calendar year.

Article below as it appeared in the Greenwich Post

State Senator Scott Frantz (R-Greenwich) released the following statement today re: Bonding Commission Meeting and the allocation of general obligation bonds totaling $546.1 million. The agenda also includes $429.2 million in special tax obligation bonds for transportation projects.

“The approval of these bonds today will bring the general obligation bond total to $2.367 billion this year alone. The problem is leadership tends to lose focus of the bigger picture. The administration has declared a soft bond cap of $2.5 billion for this calendar year, and we are now with-in a whisker of going through that cap with nearly 6 months left to go.

“Connecticut has record debt levels. Both long-term unfunded liabilities and bonded indebtedness are some of the worst in the nation. Today, we are adding $1 billion to that debt, and that has me and many others who aren’t on the Bond Commission concerned.

“On a per capita basis the state is the worst in the nation, and it would behoove all of us to pay closer attention to the new debt we are taking on and what we are doing to future generations.

“Interest rates are low — thus all the borrowing – but you still have to pay back the principle over time. The additional borrowing eventually becomes structural debt, and when interest rates go up, it will be very difficult to service our obligations.

“I would urge everyone whether you are a beneficiary of the bond commission or not to pay close attention because we are saddling future generations with debt obligations that are going to be challenging to meet.”

Sen. Frantz is the ranking member of the Finance Revenue and Bonding committee and a member of the bonding commission.