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S 9002

DEBT SERVICE FUND--GENERAL DEBT SERVICE FUND

2025 Regular Session

Allocates funds to service New York State debt, covering principal, interest, and related costs across general, revenue-backed, health/education facilities, and reserve accounts.

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Bill Summary · S 9002

Summary of Bill S. 9002-A / A. 10002-A (New York, 2025-2026)

Purpose and overall aim

This budget bill appropriates funds to satisfy the legal and contractual debt service obligations of the State of New York. It covers payments for principal, interest, related expenses, and certain lease and financing agreements tied to state debt and capital projects. The measure is framed as the "Debt Service Fund—General Debt Service Fund" and related trust/agency activities, ensuring timely debt service for various state obligations for the fiscal year beginning April 1, 2026.

Key provisions and funding allocations

  • General Debt Service Fund (principal area):

    • Total debt service payments for general obligation and related bonds and agreements: $9,014,000,000.
    • Specific component for general obligation payments: $400,000,000 (Debt Service Funds – General Debt Service Fund, 40150).
    • Related expenses: $5,000,000 (60200 series).

  • Special contractual obligation payments:

    • Total: $56,000,000.
    • Includes obligations under contracts with the City University Construction Fund (for University systems), the Gateway Development Commission, and related items (e.g., principal and interest payments).

  • Revenue bond financing agreement payments:

    • Total: $7,050,000,000 (to dormitory authority, environmental facilities corporation, housing finance agency, Thruway Authority, Urban Development Corporation) for financing agreement payments related to income-tax revenue bonds and notes.
    • Sub-schedules include:
    • Debt Service Payment (sales tax revenue bonds): $4,000,000,000
    • Subordinate note payments: $3,000,000,000
    • Related expenses: $50,000,000

  • Sales tax revenue bond payments (additional):

    • Total: $1,503,000,000 (Debt Service Payments: $1,500,000,000; related expenses: $3,000,000)

  • Health income fund debt service:

    • Total: $11,000,000, allocated between NYC Veterans’ Home and Health Department facilities related to dormitory authority agreements (including operating revenues, capital expenses).

  • School capital facilities financing reserve fund:

    • Total: $17,000,000 to support debt service for state-supported schools for blind/deaf and other handicapped programs, via the Dormitory Authority.

  • Debt Reduction Reserve Fund:

    • Authorized use: $500,000,000 to retire/ defease bonds or fund capital projects as designated by the Director of the Budget.

  • General Fund – state purposes (rebates and tax-exemption measures):

    • Rebates to maintain tax-exemption for interest on state obligations: $20,000,000.
    • Redemption of general obligation bonds to preserve tax-exemption: $225,000,000.

  • All Funds total (final debt service and related payments):

    • All funds schedule: $851,000,000 for “All Funds” debt service payments and related expenses, including interest rate exchange and similar agreements.

Beneficiaries and affected entities

  • State agencies and authorities issuing debt (e.g., Dormitory Authority, Thruway Authority, Housing Finance Agency, Environmental Facilities Corporation, Urban Development Corporation, City University Construction Fund, Gateway Development Commission).
  • State residents indirectly through debt service funding and potential implications for state credit and borrowing costs.
  • Municipal and special act districts relying on school financing arrangements.

Procedural and timeline aspects

  • The bill is a budget measure submitted by the Governor and prepared for the fiscal year starting April 1, 2026.
  • It has undergone committee action (Finance/Ways and Means) and has progressed through Senate and Assembly readings, amendments, and reprinting, with a final delivery to the Governor.
  • The appropriation language contains multiple contingencies subject to director of the budget’s certification of availability and certain implementation conditions.

Overall, S. 9002-A / A. 10002-A is a comprehensive debt-service appropriation bill designed to fund principal, interest, and related costs across general debt, revenue-backed debt, health and education-related debt facilities, and reserve funds for the State of New York.

Compiled from official sources — confirm details with the bill’s official record.

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