Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 29

Debt Administration The State has obtained long-term financing in the form of voter-approved General Obligation debt (voter-approved debt) and other obligations that are authorized by legislation but not approved by the voters (non-voter-approved debt), including lease-purchase and contractual obligations where the State’s legal obligation to make payments is subject to and paid from annual appropriations made by the Legislature or from assignment of revenue in the case of Tobacco Settlement Revenue Bonds. Equipment capital leases and mortgage loan commitments, which represent $525 million as of March 31, 2019, do not require legislative or voter approval. Other obligations include certain bonds issued through State public authorities and certificates of participation. The State administers its long-term financing needs as a single portfolio of State-supported debt that includes general obligation bonds and other obligations of both its governmental activities and business-type activities. Most of the debt reported under busi- ness-type activities, all of which was issued for capital assets used in those activities, is supported by payments from resources generated by the State’s governmental activities—thus it is not expected to be directly repaid from resources generated by business-type activities. The State Finance Law allows the bonded portion of this single combined debt portfolio, which includes debt reported in both governmental and business-type activities, to include debt instruments which result in a net variable rate exposure in an amount that does not exceed 15 percent of total outstanding State- supported debt, and interest rate exchange agreements (swaps) that do not exceed 15 percent of total outstanding State-supported debt. At March 31, 2019, the State had $97 million in State-supported net variable rate bonds out- standing and $1.4 billion in interest rate exchange agreements, in which the State issues variable rate bonds and enters into a swap agreement that effectively converts the rate to a fixed rate. Risks related to these transactions are explained in Note 7. At March 31, 2019, variable rate bonds, net of those subject to the fixed rate swaps, were equal to 0.2 percent of the State-supported debt portfolio. Variable rate bonds that were converted to a synthetic fixed rate through swap agreements of $1.4 billion were equal to 2.6 percent of the total State-supported debt portfolio. At March 31, 2019, the State had $59.6 billion in bonds, notes, and other financing agreements outstanding compared with $56.3 billion in the prior year, an increase of $3.4 billion as shown below in the table. Table 5 Outstanding Debt as of March 31, 2019 and 2018 (Amounts in millions) Governmental Business-Type Total Activities Activities* Primary Government 2019 2018 2019 2018** 2019 2018** State-supported debt as defined by the State Finance Law: General obligation bonds (voter-approved) . . . $ 2,286 $ 2,371 $ —00000 $ —00000 $ 2,286 $ 2,371 Other financing arrangements . . . . . . . . . . . . 36,741 34,819 14,072 13,099 50,813 47,918 Municipal Bond Bank Agency (MBBA) Special Purpose School Aid bonds . . . . . . . . . 139 172 —00000 —00000 139 172 Capital lease obligations . . . . . . . . . . . . . . . . . . . 19 13 442 457 461 470 Mortgage loan commitments . . . . . . . . . . . . . . . . —00000 —00000 64 66 64 66 Other long-term debt . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 79 35 79 35 Unamortized bond premiums (discounts) . . . . . . 4,497 4,172 1,271 1,039 5,768 5,211 Accumulated accretion on capital appreciation bonds . . . . . . . . . . . . . . . . . . . . . 5 8 —00000 —00000 5 8 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,687 $ 41,555 $ 15,928 $ 14,696 $ 59,615 $ 56,251 **As of June 30, 2018 and 2017 for SUNY and CUNY activities **Prior year column has been restated for the effect of the implementation of GASBS No. 80 In addition to the debt outlined above, the State reported $1.6 billion for collateralized borrowings ($333 million in governmental activities and $1.3 billion in business-type activities) for which specific revenues have been pledged. In the prior year, the State reported $1.3 billion for collateralized borrowings ($356 million in governmental activities and $956 million in business-type activities).