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Treasurer and BFA tell committee a larger loan‑guarantee cap would reduce state borrowing headroom but risks are manageable
Summary
State Treasurer Monica Mazzappelli and Business Finance Authority Executive Director James Key Wallace told a House committee that raising the BFA's contingent credit limit from $200 million toward $450 million would reduce the state's debt capacity but is within modeled tolerances; the BFA said higher project costs and a robust pipeline justify a larger limit.
State Treasurer Monica Mazzappelli told the House committee that the state's statutory debt‑service limit under RSA 66 is driven by unrestricted revenue and currently the state is using about 65% of that capacity, leaving roughly $120,000,000 of headroom. "The legislature cannot approve additional debt if it exceeds 10%," Mazzappelli said, summarizing the statutory cap and the debt‑affordability study her office publishes.
Mazzappelli said the contingent liabilities the state guarantees for programs such as the Business Finance Authority are counted in that capacity calculation. She said approving an additional $250,000,000 in contingent credit for the BFA would increase the state's contingent…
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