Senate committee hears CDAC recommend $100 million in debt authorization; bond bank warns deferred maintenance risks

Montpelier — Representatives of the Capital Debt Affordability Advisory Committee told the Senate Committee on Institutions on Jan. 8 that CDAC recommends $100 million in new debt authorization for the 2026–27 biennium, and staff and the Vermont Bond Bank urged lawmakers to account for deferred maintenance and use rating-agency metrics in future reviews.

Jeremiah Breer, chief financial officer for the State Treasury, said CDAC's report — an advisory document statutorily due each year — examines the state's net tax-supported debt using credit-rating measures such as debt per capita, debt service as a percentage of revenues and debt outstanding as a share of personal income. "By statute, that report is advisory," Breer said. He added that in practice legislatures and governors typically adopt the recommendation and that credit rating agencies value adherence.

Breer told senators the state currently carries $663,000,000 in net tax-supported debt, including about $550,000,000 in general obligation bonds; he also itemized other components reported in CDAC materials: $26,000,000 in VHFA bonds, $65,000,000 in leases and $22,000,000 in technology subscription arrangements that are accounted for as debt. He noted…