§ 1001. Capital Debt Affordability Advisory Committee
(a) Committee established. A Capital Debt Affordability Advisory Committee is hereby created with the duties
and composition provided by this section.
(b) Committee duties.
(1) The Committee shall review annually the size and affordability of the net State tax-supported
indebtedness and submit to the Governor and to the General Assembly an estimate of
the maximum amount of new long-term net State tax-supported debt that prudently may
be authorized for the next fiscal year. The estimate of the Committee shall be advisory
and in no way bind the Governor or the General Assembly.
(2) The Committee shall conduct ongoing reviews of the amount and condition of bonds,
notes, and other obligations of instrumentalities of the State for which the State
has a contingent or limited liability or for which the General Assembly is permitted
to replenish reserve funds, and, when deemed appropriate, recommend limits on the
occurrence of such additional obligations to the Governor and to the General Assembly.
(3) The Committee shall conduct ongoing reviews of the amount and condition of the Transportation
Infrastructure Bond Fund established in 19 V.S.A. § 11f and of bonds and notes issued against the Fund for which the State has a contingent
or limited liability.
(c) Committee estimate of a prudent amount of net State tax-supported debt; affordability considerations. On or before September 30 of each year, the Committee shall submit to the Governor
and the General Assembly the Committee’s estimate of net State tax-supported debt
that prudently may be authorized for the next fiscal year, together with a report
explaining the basis for the estimate. The Committee’s estimate shall not take into
consideration the balance remaining at the end of each fiscal year in the subaccounts
of the Cash Fund for Capital and Essential Investments, established pursuant to section 1001b of this title. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
subsection. In developing its annual estimate, and in preparing its annual report,
the Committee shall consider:
(1) The amount of net State tax-supported indebtedness that during the next fiscal year
and annually for the following nine fiscal years:
(A) will be outstanding; and
(B) has been authorized but not yet issued.
(2) A projected schedule of affordable net State tax-supported bond authorizations for
the next fiscal year and annually for the following nine fiscal years. The assessment
of the affordability of the projected authorizations shall be based on all of the
remaining considerations specified in this section.
(3) Projected debt service requirements during the next fiscal year, and annually for
the following nine fiscal years, based upon:
(A) existing outstanding debt;
(B) previously authorized but unissued debt; and
(C) projected bond authorizations.
(4) The criteria that recognized bond rating agencies use to judge the quality of issues
of State bonds, including:
(A) existing and projected total debt service on net tax-supported debt as a percentage
of combined General and Transportation Fund revenues, excluding surpluses in these
revenues that may occur in an individual fiscal year;
(B) existing and projected total net tax-supported debt outstanding as a percentage of
total State personal income;
(C) existing and projected pension and other postemployment benefit liability metrics;
and
(D) other metrics at the Committee’s discretion, including long-term liabilities not covered
in subdivisions (A)–(C) of this subdivision (4).
(5) The principal amounts currently outstanding, and balances for the next fiscal year,
and annually for the following nine fiscal years, of existing:
(A) obligations of instrumentalities of the State for which the State has a contingent
or limited liability;
(B) any other long-term debt of instrumentalities of the State not secured by the full
faith and credit of the State, or for which the General Assembly is permitted to replenish
reserve funds; and
(C) to the maximum extent obtainable, all long-term debt of municipal governments in Vermont
that is secured by general tax or user fee revenues.
(6) The impact of capital spending upon the economic conditions and outlook for the State.
(7) The cost-benefit of various levels of debt financing, types of debt, and maturity
schedules.
(8) Any projections of capital needs authorized or prepared by the Agency of Transportation,
the Joint Fiscal Office, or other agencies or departments.
(9) Any other factor that is relevant to:
(A) the ability of the State to meet its projected debt service requirements for the next
five fiscal years; or
(B) the interest rate to be borne by, the credit rating on, or other factors affecting
the marketability of State bonds.
(10) The effect of authorizations of new State debt on each of the considerations of this
section.
(11) The capital asset depreciation ratio reflecting unfunded capital maintenance costs.
(d) Committee composition.
(1) Committee membership shall consist of:
(A) As ex officio members:
(i) the State Treasurer;
(ii) the Secretary of Administration; and
(iii) a representative of the Vermont Municipal Bond Bank chosen by the directors of the
Bank.
(B) Two individuals with experience in accounting or finance, who are not officials or
employees of State government appointed by the Governor for six-year terms.
(C) The Auditor of Accounts who shall be a nonvoting ex officio member.
(D) One person who is not an official or employee of State government with experience
in accounting or finance appointed by the State Treasurer for a six-year term.
(E) The Legislative Economist or other designee of the Joint Fiscal Office, who shall
be a nonvoting ex officio member.
(2) The State Treasurer shall be the Chair of the Committee.
(e) Other attendants of committee meetings. Staff of the Legislative Counsel and the Joint Fiscal Committee shall be invited to
attend Committee meetings for the purpose of fostering a mutual understanding between
the Executive and Legislative Branches on the appropriate statistics to be used in
committee reviews, debt affordability considerations, and recommendations.
(f) Information. All public entities whose liabilities are to be considered by the Committee shall
annually provide the State Treasurer with the information the Committee deems necessary
for it to carry out the requirements of this subchapter. (Added 1989, No. 258 (Adj. Sess.), § 1; amended 2007, No. 121 (Adj. Sess.), § 28; 2007, No. 200 (Adj. Sess.), § 25, eff. June 9, 2008; 2009, No. 50, § 31; 2013, No. 142 (Adj. Sess.), § 65; 2019, No. 42, § 26a, eff. May 30, 2019; 2021, No. 105 (Adj. Sess.), § 478, eff. July 1, 2022; 2023, No. 78, § C.107, eff. June 20, 2023; 2025, No. 27, § E.131.2, eff. July 1, 2025.)