FRANKFORT — The state Senate unanimously approved a bill Thursday that would limit Kentucky’s level of debt and essentially halt any new debt until 2021.
The sponsor of Senate Bill 10, Sen. Joe Bowen, R-Owensboro, said the measure will “put a limit on our credit card.”
The bill would not allow debt payments to exceed 6 percent of the state General Fund, which pays for most state programs.
The calculation would exclude debts that are repaid using other sources of money, such as university funds, the state Road Fund and money generated by agencies such as the Kentucky Housing Corp.
The measure would have the practical effect of stopping new state debt until 2021, when, according to Bowen’s estimate, the 6 percent limit would be achieved. Kentucky’s annual General Fund debt obligation now takes up 8.39 percent of the state’s largest pot of money.
The measure now goes to the House for its consideration. It stalled in the House last year.
Filed Under: KY General Assembly