New York City Mayor Eric Adams plans to seek state legislation to boost the city’s borrowing capacity by $19 billion, a move opposed by City Comptroller Brad Lander, a fellow Democrat.
The city wants to raise the amount of bonds issued by the Transitional Finance Authority that won’t count against the city’s general debt limit to $32.5 billion, according to an offering statement for a $1.2 billion bond sale slated for this month. The TFA was set up in 1997 to help the city avoid exceeding its debt limit. The mayor’s request would give a significant boost to New York’s debt capacity, which is now around $43 billion and is projected to tumble in coming years.
