PPT Slide
The next chart categorizes government spending to examine the General Fund growth over a four-year period. Included in the “general government” category is the cost of debt service. As can be seen in the chart, the general government category is the only one that shows a decrease over the four-year period measured. This is because debt service has been reduced by a series of defeasance plans implemented in FYs 96, 97, and 98. Those plans had the effect of reducing debt service cost over a number of years, thereby making room in the budget for other expenditures. Those years affected by the defeasance plans will soon be completed, and the state will return to a normal amortization schedule for debt service. The growth in debt service does not reflect any extraordinary bond sales. It assumes that there will be no bond sale in FY 00, and after that the state will issue $200 million in bonds per year.