A proactive, fiscally conservative plan to invest in North Carolina s future.

Transcription

1 A proactive, fiscally conservative plan to invest in North Carolina s future.

2 Connect NC Bonds: Base v. Enhanced Note: Connect NC Base from H940, Governor s Budget; PAYGO amount equivalent to 6 years of savings from stopping the HF transfer to GF (6 x $216 M) 2

3 The Proposal Infrastructure $2.85B Bond 6 Year Plan 20 Year Bond Transportation $1.30B Cash 6 Year Pay-Go Plan On-going each year

4 Scenario 1 - $2.84 B issued now Scenario 2 - $1.42 B issued now, $1.42 B issued in 6 years Scenario 3 - $2.84 B issued in 6 years

5 4.75% 4.50% 4.25% 4.00% Debt Service as a Percentage of General Fund Revenue 4.75% Recommended Limit 4% Suggested Limit 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% Existing Debt With New Issuance at 5.75% With New Issuance at 3.5% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% Prepared by Fiscal Research using data from the Dept. of State Treasurer

6 Ample Debt Service Capacity Affordability Note: General Fund revenue data reflect May 2015 consensus forecast and OSBM estimates for FY to FY ; Transportation revenue data based on OSBM and NC DOT estimates (including impact from S20); assumes all debt issued in March 2016

7 15 Years Since Last Bond Referendum History

8 Time is Money Timing We maintain our call for the first fed funds rate hike in September of this year. Wells Fargo Securities, May 27, 2015 Each 0.25% increase in interest rates costs $7.5 million in the first year alone

9 Affordability Note: Based on data from the 2015 DAAC Study by the NC Department of State Treasurer. Debt amounts include General Obligation debt and Special Indebtedness, but do not include capital leases and debt issued by NC Turnpike Authority. Projections assume that all new debt would be issued in March 2016.

10 Project List Extends the life of the State s useful assets. Financing aligns with the asset lifespan. Focuses on areas that will boost State s economic activity. Partners with university and industry to prioritize projects.

11 Capital Repairs and Renovations Project List Statewide $ 200,000,000 AOC Courthouse Facilities Capital Assistance Program $ 15,000,000 Agriculture Plant Sciences Building Ag / NCSU Partnership $ 85,000,000 Department of Agricultural Lab Facility $ 110,000,000 Public Safety Samarcand Training Academy $ 8,500,000 Highway Patrol Training Academy $ 38,225,000

12 National Guard McLeansville Regional Readiness Center, Guilford County $ 43,959,375 Western Youth Institution Readiness Center, Burke County $ 26,400,000 High Point Armory Major Renovations $ 625,000 Louisburg Armory $ 2,377,288 Reidsville Armory $ 2,377,288 Hamlet Armory $ 2,108,334 Monroe Armory $ 2,658,334 Goldsboro Armory $ 1,558,334 Fayetteville Armory $ 2,658,334 Sanford Armory $ 2,108,334 Elkin Armory $ 1,558,334 Franklin Armory $ 1,558,334 Scotland Neck Armory $ 1,558,334 JFHQ Heli-Pads $ 746,000 Camp Butner Buffer Zones $ 500,000

13 Education: UNC System ASU New Health Sciences Building $ 70,781,681 NCSU Engineering Building $ 65,100,000 UNCC New Sciences Building $ 90,000,000 UNCW Allied Health and Human Sciences/Nursing Building $ 65,655,041 NCSSM Discovery Center Residence Hall $ 7,410,000 NCSSM Western School of Science and Math $ 58,792,500 ECU Life Sciences and Biotechnology Building $ 124,522,662 UNCCH Medical Education Building Replacement $ 68,835,000 NCAT Engineering Building $ 96,676,418 WCU Sciences/STEM Building $ 102,858,929 WSSU Sciences Building $ 52,507,065

14 Education: UNC System ECSU School of Aviation $ 15,794,660 UNCG Jackson Library Renovation $ 20,000,000 UNCP West Hall Comprehensive Renovation $ 10,000,000 UNCSA Old Library Renovation $ 7,350,000 FSU Lyons Science Building Comprehensive Renovation $ 10,616,373 UNCA Renovation and Addition to Owens Hall $ 15,150,000 NCCU Taylor Building Comprehensive Building Renovation $ 7,500,000

15 Education: Community Colleges and K-12 Community Colleges Statewide $ 300,000,000 Public Schools Capital Assistance Program New Schools Statewide $ 500,000,000 Additions Renovations Furnishings and Equipment Land

16 North Carolina Zoo Parks and Natural Resources Africa Plains Safari $ 250,000 Australasia Exhibit Complex Replace African Pavilion $ 9,000,000 Australasia Exhibit Complex $ 15,000,000 Matching Local Parks Grant Fund for Children and Veterans with Disabilities $ 10,000,000 State Parks $ 100,000,000 Water and Sewer Matching Grants Program Statewide $ 75,000,000 Cultural Resources USS NC Battleship New Visitor's Center New Hanover $ 10,800,000

17 Transportation Supplemental and Targeted Funding Statewide $ 400,000,000