SALEM, Ore. -- The Oregon Legislature could issue up to $1.14 billion in new general-fund backed debt and up to $209 million in Lottery-backed debt over each of the next four 2-year budget cycles, State Treasurer Tobias Read announced Monday. That's $5.4 billion over the next eight years.
The figures are crucial to the Legislature’s deliberations on the 2017-19 budget and a long-term transportation infrastructure funding plan.
The amounts came from the State Debt Policy Advisory Commission, which issued its report based on historical thresholds that will maintain Oregon’s strong credit ratings, the treasurer’s office said.
The commission also urged legislators and the governor to prioritize Oregon’s debt capacity for the long-term, by balancing the costs and benefits of building new projects versus taking steps to fund the preservation of existing infrastructure.
“The Oregon State Treasury is helping to finance critical infrastructure that will improve Oregon’s education opportunities and economic competitiveness,” Read said in a statement. “We need to remember that while public debt is a powerful tool, it is limited and should be deployed in balanced ways that give Oregon the strongest benefits for the long term.”
Unlike the federal government, Oregon must pass a balanced budget and cannot borrow for government operational costs.
In addition to the Treasurer, the five-member commission is made up of Sen. Richard Devlin, D-Tualatin; Rep. Phil Barnhart, D-Eugene; Katy Coba, director of the Department of Administrative Services; and University of Oregon economist Tim Duy, representing the public.
