New York to Sell $800 Million in Bonds Backed by Income TaxesFreeman Klopott
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.