New York to Sell $800 Million in Bonds Backed by Income Taxes

New York’s Dormitory Authority this week is selling $800 million in top-rated bonds backed by personal-income taxes.

New York, which has about $28.9 billion in debt backed by income taxes, this year began selling sales-tax-supported bonds to provide investors with another option for buying securities rated AAA by Standard & Poor’s. The two methods are the primary vehicles for financing state-supported programs, according to bond documents.

New York’s general-obligation bonds are rated AA, the third-highest investment grade, by S&P. The state is poised for its highest rating since 1972 if Governor Andrew Cuomo can get the legislature to pass his fourth on-time budget by April 1.

Cuomo projects a $2.2 billion surplus over the next five years and plans to use the cash to cut property and corporate taxes by about the same amount.

New York had the sixth-largest jump in tax revenue among U.S. states in the 12 months through June, according to the Bloomberg Economic Evaluation of States.

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