Asheville Reporter

Asheville Reporter

Sunday, April 5, 2020

Debt study not to be viewed as endorsement for school bonds, North Carolina treasurer says

Local Government

By Sarah Downey | Mar 26, 2020

North Carolina State Treasurer Dale Folwell | Facebook

Even as the governor touted the state’s debt affordability report as a means to finance school construction, state Treasurer Dale Folwell said it wasn’t the way the report, issued by his department, should be viewed.

“The report’s increase in debt capacity is more related to a change in methodology than any real change in the state’s ability to issue debt,” Folwell said in a news release.

Gov. Roy Cooper has recently spoken of issuing $2 billion in bonds to pay for school construction.

“Additionally, the report does not endorse or speak to any proposal to issue debt. The change in debt capacity is analogous to a credit card company raising your credit limit. Higher borrowing ability does not mean it is wise for you spend up to that limit, particularly if you have sufficient assets to pay for needs without borrowing. The decision to use debt capacity for any proposal is appropriately the initial responsibility of the General Assembly,” Folwell added.

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